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New appointments in Befesa

As you are all aware, our Company has, for some time now, being making a major effort to enter the non-hazardous industrial waste market in which, up until recently, our presence was minimal. That effort has resulted in the construction and start-up of the Ajalvir NP (Madrid) and Alcala NP (Seville) units, in the acquisition of the company Gestión de Residuos del Cerrato, in Palencia, and in, since approximately a year ago, Presidency endowing us with the responsibility of managing the Utrera, Guadalajara and Almeria centers. In addition, work is still going ahead on consolidating growth with new projects, some of which are at a very advanced stage, directed from the business development division, such as Torres Vedras (Portugal), a new facility in Palencia, a bid presented in Aragon, and treatment units in Malaga, Granada and Seville.

We have often said that this is a market that could be more than satisfactory in the future, but that this would not be achieved without enormous dedication and intense work. Our first challenge has to be faced in this financial year; 2006 has to be a year in which very important quantitative and qualitative advances are made in this sector within the company.

As we understand that the work to be developed requires the full-time dedication of human resources, we have decided to set up a new department within the Company, the fundamental mission of which will be to consolidate this line of business, and we consider that the person most suited to managing this department is Alvaro de Rojas who, as of from January 1, has been appointed Non-Hazardous Waste Manager.

Alvaro vacates a Commercial Delegate post in the central area and this will be taken up by Miguel Berastagui who, we are certain, will continue to make advances in the area.

I am sure they will both receive everyone's maximum collaboration to enable them to settle in quickly into their new posts. As of for myself, I wish to express my satisfaction with your appointments and wish you the best of results in your undertakings.

Regards to all.