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Press Release

27/11/2006

NATURENER, the 52.45 % subsidiary of the SAPEC Group in renewable energy, confirms important new projects

In January 2006 the SAPEC Group announced the sale of all its wind energy projects in Spain stating that this operation would considerably strengthen the resources of its subsidiary Naturener to finance its development in the hydraulic energy sector in Spain.

After a number of studies it became apparent that the hydraulic sector in Spain was, as with the whole of the wind energy sector (one of the reasons behind the sale), already in an advanced stage of development and therefore saturated in terms of new investment opportunities for value creation.

Consequently the management team, which had successfully developed the wind projects in Spain and which had thereby gained an important level of know-how, was re-directed towards looking for new projects within the renewable energy sector in other non-saturated markets with strong potential.

In wind energy, after having analysed different markets, our attention was definitively drawn towards North America, as this market clearly responds to the defined criteria, offering a whole series of concrete opportunities.

After several months of studying different projects, Naturener managed to acquire a portfolio of wind energy projects being developed by a number of American and Canadian companies, which would provide a maximum total of 1800 mega watts (MW) by 2012. These projects are mostly located in Montana in the United States and in Alberta in Canada and are largely still at the licensing stage of development.

The deal consists in acquiring 100% of the shares in the group of companies representing an investment of 10.9 Million USD upon the signing of the contract and a balance of 10.3 Million USD to be paid in successive instalments depending on the definitive reception of the parks.

The progressive start-up of production capacity will require major investments (estimated at around 1.5 million USD per MW), of which probably more than 200 million USD will be in 2007.

Over the following months, Naturener will put in place a financing structure adapted to these investment projects which will allow the financing of most of these investments through "non-recourse project finance" and will permit, if necessary, the setting up of joint ventures with partners.

Outside wind energy, we can confirm that the definitive administrative concession for the photovoltaic energy project in Albacete in Spain has been obtained and it is therefore foreseeable that its construction can start in the first semester of 2007. This is a park with about 10 MW installed capacity, representing an investment in the order of 75 Million €. Current Spanish legislation offers very advantageous conditions for the first 400 MW of photovoltaic power connected to the grid.

In order to cope with these new and important projects, Naturener's management team will be increased and the company's financial structure will undergo profound restructuring. Different models and options are being studied.

The SAPEC Group is therefore setting up good development prospects for its renewable energy sector.

.Contacts for all further information:

M.M. Antoine Velge   ou   Eric van Innis      Tel : + 351 213 222 777

                                                           Email : investorsrelations@sapec.pt