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10.09.2006

Befesa guarantees the supply for the municipalities of the Ecija Consortium

Madrid, October 9, 2006. - Befesa Medio Ambiente, the parent company of Abengoa's environmental services business, has been awarded a contract valued at more than 23 million euro by Empresa de Gestión Medioambiental, S.A. - Egmasa -, dependent on the Department of the Environment of the Regional Government of Andalusia, to execute the transfer splitting of the water supply mains from Retortillo reservoir to Ecija's potable water treatment plant (PWTP).

The project, the object of which is to modernize and increase the transportation capacity of the high capacity water mains of all the municipalities, includes the replacement of 34 kilometers of pipeline, most of which is 1,200 millimeter diameter, and the construction of two pumping stations to facilitate water circulation and the corresponding discharge intake.

The works awarded to Befesa are part of the activities the Department of the Environment of Andalusia is carrying out within the framework of the agreement signed with the Provincial Water Consortium of Seville, which guarantees an investment of 581.3 million euro over the next eight years.

The works to be executed will improve the water supply to the municipalities that have subscribed to the so-called "Ecija Water Plan Consortium", which include Ecija, Luisiana, Cañada del Real, Fuentes de Andalucía, La Campana, Marchena, Paradas, Arahal, Moron, Osuna, Puebla de Cazalla, La Lantejuela, Marinaleda, Herrere, and El Rubio. To be specific, The Ecija Plan will receive 120 million euro in investments, of which 60 percent will be provided by the Regional Government of Andalusia, while the remaining 40 percent will be borne by the Provincial Water Consortium of Seville.

According to Befesa's chairman and chief executive officer, Javier Molina, "this contract will guarantee the water supply for more than 200,000 inhabitants while also guaranteeing the quality of the water and accessibility thereto in the region. These new activities contribute greatly to the upgrading of the hydraulic system and positively affect the sustainable development of western Andalusia".

Befesa, Abengoa's environmental services subsidiary, focuses on providing environmental services for the industrial sector and on constructing environmental infrastructures. It is a listed company and closed the 2005 financial year with treasury stock in excess of 397 million euro and billing of 402.4 million euro. (www.befesa.es).

Abengoa is a technology company that applies innovative solutions for sustainable development in the infrastructures, environment and energy sectors. It is a listed company with treasury stock of 1,986.71 million euro (09/10/06) and is present in more than seventy countries where it operates through its five Business Units; Solar, Bioenergy, Environmental Services, Information Technologies, and Industrial Engineering and Construction. (www.abengoa.com).