INFORMATION ABOUT COFIVACASA GROUP

SEPI has began the reorganization process of its equity investments, which affect those companies which have no industrial or commercial activity, and which are concentrated in a sole company, COFIVACASA, which is charged with the task of managing their winding-up.

Year 2006:

The Council of Ministers, in the meeting which it held on November 10th, 2006 authorized to the state-owned industrial holding company SEPI to order its affiliated company Cofivacasa, S.A. to terminate and cancel the entries on register of Acenor S.A., of the Empresa Nacional Adaro, S.A. in liquidation (Adaro) and of Grúas y Utillajes, S.A. (Grutisa).

BWE:

On October 2001 the production branch was sold to Babcock Borsig A.G., and BWE focused on finishing off the ongoing projects, to fulfilling the commitments it had and to the management of its affiliated companies.

Activity of the company in year 2009:

In 2009, COFIVACASA bought the SODIAN shares to its majority shareholder (SEPI) and to other minority shareholders, with the goal of proceeding to its dissolution in 2010.

The main actions of COFIVACASA and its affiliated companies focused on its liquidation were oriented towards the review and regularization of all the policies which externalize with insurance companies the commitments made with the retired workers, together with the follow-up and filing of claims and disputes, among which some relevant events have taken place, such as the favorable resolution of a claim filed in Argentina, claiming damages in one affiliated company as a result of the changes introduced in 2002 in Argentina's currency, and the favorable judgment in the remedy of appeal filed regarding a claim submitted by the retired workers of the former affiliated company Altos Hornos de Vizcaya (AHV).

Equally, the process for the closure of all the permanent facilities abroad of its affiliated company BWE has concluded, although in some countries there are still open some procedures for fiscal matters.

Further, the Group includes two companies which perform an industrial activity: SOFESA as a manager of equipment for wind-farms, currently in warranty period once its building has been completed, and EQUIPOS TERMOMETÁLICOS (ETM) a company located in Burgos whose activity centers on the capital goods industry, and specifically in the manufacture of heat exchangers, and which in 2009 had a turnover of 16.7 Million Euros and a net income of 1.4 Million Euros, thanks to the important number of orders won.

Grupo COFIVACASA recorded a net income of 90.5 Million Euros, which was mostly due to the tax credits derived from the payments of the commitments assumed with the retired workforce, and the recovery of the book provisions as a result of the favorable conclusion of the AHV claim.