MADRID, SPAIN -- (MARKET WIRE) -- 07/05/07 -- Iberdrola, one of the world's leading private energy groups with a presence in approximately 40 countries, and IBM (NYSE: IBM) have entered into an US$84.4 million agreement that will promote IT innovation in Spain.

Through the agreement, INSA, an IBM company, will open an Innovation Center at Iberdrola's new facilities in Aldeatejada (Salamanca, Spain). The center will begin by working on a software development and maintenance project for Iberdrola and its worldwide subsidiaries.

Iberdrola is the largest wind energy producer in the world, one of the leading international developers of combined cycles, the lowest-emission generator in Spain, and one of the cleanest energy producers in Europe.

Along with this initial agreement with Iberdrola, the center will also be dedicated to increasing the productivity of IBM's clients in Spain and Portugal through the design, development and maintenance of applications in diverse technological platforms.

It will also draw on the expertise of IBM's global network to bring the latest innovations to local clients.

This agreement is consistent with Iberdrola's commitment to innovation, scientific research and sustainable social and energy development, one of the pillars of its Strategic Plan (2007-2009). Through this period Iberdrola will invest approximately EUR 200 million in Research Development and Innovation projects and has announced an innovation network to share and promote ideas with its IT partners (providers, universities, IT centers, associations and other agents).

Data processing center

IBM and Iberdrola have also signed a second agreement for IBM to manage the IT infrastructure of Iberdrola's new data processing center at Aldeatejada.

With this 10-year, US$8.1 million agreement, Iberdrola will be able to optimize its IT resources. Through this second project, Iberdrola will be able to focus its resources on more value-added activities and boost innovation through access to the best technologies and practices.

Both agreements were signed in June 2007.

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Media Contact:
Adam Emery
IBM Media Relations
917-472-3283
adame@us.ibm.com