SEPI Sociedad Estatal de Participaciones Industriales

Mr. Federico Montero Hita, Vice President of the state-owned industrial holding company Sociedad Estatal de Participaciones Industriales (SEPI), Mr. Juan Taús Rubio and Mr. Antonio Javier Cordero on behalf of the shipbuilding company IZAR Construcciones Navales, S.A. en Liquidación, have signed today, in the presence of a Public Notary, the dation deed as part payment for the debt regarding the land and buildings of the Manises factory, owned by IZAR, for the amount of 62,179,000 Euros.

The signing of this deed has been possible after the Council of Ministers which took place on April 30th, 2008 modified SEPI's capital budget, for the financial year 2008, once SEPI's Board of Directors decided, on February 29th, 2008 to purchase from IZAR Construcciones Navales, S.A. en Liquidación, the land and buildings which make up the Manises factory.

IZAR's Liquidation Commission had decided not to award, on June 29th, 2007, the procedure for the sale of the assets of the Manises factory, fulfilling in this way the legal requirements of IZAR's Liquidators and with the terms and conditions set by the European Commission, which required to choose the alternative which maximized the value for IZAR.

This sale is made as part payment of the debt which IZAR has with SEPI for the aids which the former received from the later and which were declared as incompatible with the European Union norms. That was the reason why the European Union required IZAR Construcciones Navales, S.A. en Liquidación to return to SEPI 1,200 Million Euros.