The Board of Directors, in a meeting held on September 29, 2006, making use of the power conferred by the General Shareholders’ Meeting held on May 30, 2003, passed a resolution to increase the share capital by a nominal and cash value of €1,481,653, through the issue of 1,481,653 ordinary shares, with a preemptive right in favour of those considered shareholders at the end of the day previous to the beginning of the subscription period. Likewise, the Boards of Directors agreed that in case the capital increase should not be fully covered in the above-mentioned subscription period, the capital will be increased only in the amount of the subscriptions made

The subscription period was from October 31 2006 to November 14 2006 (inclusive). Upon expiration of the said period, 1,476,477 shares were fully subscribed and paid up.

On November 20, 2006 the public deed for the increase of the share capital in €1,476,477 was granted. After the above-mentioned capital increase, the share capital is €149,965,688, is fully subscribed and paid up, and consists of 149,965,688 shares, of €1 euro par value each, represented by book entries. The above-mentioned public deed is already entered in the mercantile register.

According to article 30 bis, section 1.e) of Law 24/1988, of July 28, of the Securities Market, and to article 26.1.a) of Royal Decree 1310/2005, of November 4, by virtue of which Law 24/1988, of July 28, of the Securities Market is developed, the Society is not obliged to prepare or submit to approval nor to registration any booklet before the Spanish Securities and Exchange Commission for the subscription or the admission to quotation of the new shares.