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A final dividend for the year 2006 is expected to be distributed to Iberdrola shareholders in July 2007. The record date for this dividend is 2 July 2007 and subject to the Scheme becoming effective the holders of Bonds who exercise their conversion rights such that they are registered holders of Iberdrola Shares by that date will be eligible to receive this dividend on the Iberdrola Shares they receive. In accordance with Condition 9(c) of the Bonds, following the Effective Date each holder of a Bond will have the right to require the Issuer to redeem that Bond at its principal amount together with accrued interest on the Relevant Event Put Date (as defined below).

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