Abengoa Reaches Strategic Agreement with CEMIG, Which Includes the Sale of Stakes in Transmission Lines in Brazil for euro 485 M

  Abengoa Reaches Strategic Agreement with CEMIG, Which Includes the Sale of
         Stakes in Transmission Lines in Brazil for euro 485 Million

- The deal is part of the company's asset rotation strategy and will reduce
Abengoa's net debt position by approximately euro 656 million.

- Abengoa creates a joint venture with CEMIG to develop energy transmission
business in the region.

  PR Newswire

  SEVILLE, Spain, June 2, 2011

SEVILLE, Spain, June 2, 2011 /PRNewswire/ -- Abengoa, the international
company that develops innovative solutions for sustainable development in the
energy and environment sectors, has reached an agreement with Compania
Energetica de Minas Gerais (CEMIG), one of Brazil's largest electricity
companies, through the entity Transmissora Alianca de Energia Eletrica S.A.
(TAESA), to create a joint venture that will combine four transmission
concessions currently owned by Abengoa: STE, ATE, ATE II and ATE III, in which
CEMIG will now take a 50% stake. The new company will become a strategic
growth vehicle for Abengoa in the electricity transmission business in Brazil.
Abengoa will also sell 100% of the concession company NTE to CEMIG.

The deal will strengthen Abengoa's balance sheet, generating euro 485 million
(depending on the foreign exchange rate used) in cash, reducing its
consolidated net debt position by approximately euro 656 million, and the
estimated net gain from the sale will be in the range of 27 to 30 M euro, and
may vary depending on the date and final costs of the transaction and foreign
exchange impact, among other variables.

The assets in the transaction cover 2,518 kilometres and have been in
operation for an average of five years. Of this total, Abengoa will continue
to participate in the management of 2,138 kilometres, through the creation of
the joint venture with CEMIG, which will enable it to continue growing through
this activity in Brazil and other Latin American countries. The concession for
these assets was granted to Abengoa by ANEEL (the national electricity agency
in Brazil), and they came into operation between 2004 and 2008.

Manuel Sanchez Ortega, CEO of Abengoa, explained, "This transaction represents
a very important milestone for the company: it strengthens our commitment to
the Brazilian transmission market and our commitment to the country,
introducing a key partner such as CEMIG into our growth strategy."

"Furthermore, financially, this transaction strengthens our balance sheet
thanks to the significant reduction in net debt, which will enable us to
continue developing our business model with a more solid capital structure.
This is consistent with our selective asset rotation strategy that we have
explained to the markets in recent months," continued Sanchez Ortega.

Abengoa has had a permanent presence in Brazil for more than 30 years and,
following this transaction, the company will still hold an asset portfolio of
more than 6,600 kilometres, including the 2,138 kilometres of the new joint
venture created by this transaction. The company has three bioethanol
production plants and has developed a large number of projects for its
Brazilian clients, demonstrating Abengoa's commitment to Brazil, which
currently accounts for 18% of its sales.

The deal is subject to the approval of the financial lenders, as well as
ANEEL.

Conference call details

Abengoa's CEO, Manuel Sanchez Ortega, and Chief Reporting Officer and Head of
Investor Relations, Barbara Zubiria Furest, will hold a conference call to
explain the details of the transaction, which will be simultaneously broadcast
via the internet, on Friday, June 3, 2011 at 11:00am (Madrid time).

To access the conference call, please dial +34 91 788 93 03. The conference
call can be followed live via Abengoa's website, www.abengoa.com . We
recommend accessing the website at least 15 minutes prior to the start of the
conference call to be able to register and download the audio software
required to be able to listen.

A recording of the conference call will be available on Abengoa investors'
webpage approximately two hours after the conference has finished.

About Abengoa

Abengoa (MCE: ABG) is an international company that applies innovative
technology solutions for sustainable development in the energy and environment
sectors, generating electricity from the sun, producing biofuels, desalinating
sea water and recycling industrial waste. ( www.abengoa.com ).

About CEMIG

CEMIG is one of the leading electricity companies in Brazil. It has more than
9,700 employees and is present in 19 states in Brazil and Chile. Its principal
activities are electricity transmission and distribution. It also works in the
natural gas, telecommunications and energy efficiency services sectors. It has
7,506 kilometres of transmission lines and a distribution network of 450,316
kilometres. ( www.cemig.com.br ).

For more information please contact:

Communications Department Patricia Malo de Molina MelendezLoreto Gonzalez
GoizuetaTel. +34 954 93 71 11 E-mail: comunicacion@abengoa.com

Investor Relations DepartmentBarbara Zubiria FurestTel. +34 954 937 111E-mail:
ir@abengoa.com

SOURCE Abengoa

Website: http://www.abengoa.com
 
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