ENDESA and DS2 sign long term technology cooperation agreement. DS2 consolidates its lead in PLC for video over ADSL

Madrid, 29 June 2006, - Endesa and DS2, world leader in the design and development of PLC (Powerline Communications) chips, announced an agreement through which both companies will jointly engage in technology initiatives to launch Intelligent Electricity Networks.

DS2 powered PLC technology is the only PLC technology that allows telecommunications transmission (video, voice and data) over electric cables at speeds greater than 200 Mbps. DS2 technology has been adopted by leaders in the consumer product market including the US based NETGEAR as well as by leading suppliers of PLC products that allow subscribers to ADSL and FTTH services create local area networks, such as the products sold by the Canadian company CORINEX.  In the longer term this Agreement will also consolidate DS2s lead for control applications in “intelligent electricity networks”.  

One of ENDESA's most important objectives is to transform the traditional electricity network into an “intelligent network” to achieve maximum quality and efficiency in distribution, predict demand, anticipate instabilities and increase the flexibility of the electricity distribution operation by incorporating sensors, and real time communications and systems management.  In this context, DS2's PLC technology plays a key role by delivering high quality, high speed telecommunications over the existing electricity network.

Under this agreement DS2 will dedicate a part of its R&D work to the development and adaptation of its chips for use in applications including AMR (Automatic Meter Reading), telecontrol, demand management, the prevention and diagnosis of errors and other applications to allow ENDESA increase  efficiency and lower operation costs.

Furthermore, DS2 will have the support of ENDESA's experts to define the innovation requirements in these fields as well as access to the electricity network to test and development of the next generation intelligent electricity network.  

In this context and within the framework of the agreement signed between both companies, DS2 will participate as a partner in the CENIT consortium on Intelligent Networks.  Known as DENISE ( from the Spanish for Distribution of Intelligent, Safe and Efficient Energy), this consortium is lead by ENDESA and includes more than 30 companies and universities developing various technologies related to the concept of the Intelligent Network. DS2's technology is included in the telecommunications module.

On 17th July, the International Intelligent Network Day sponsored by DS2 and with participation from the European Commission (SmartGrids technology platform) and the American EPRI (Intelligrid consortium) will take place in Madrid.    

About Design of Systems on Silicon (DS2)
DS2 (www.ds2.es) is the world's leading supplier of the 200 Mbps technology that enables home networking and broadband access over power line, coaxial cable, and telephone wire. DS2 pioneered the industry with the introduction of its 200 Mbps chipsets, creating the fastest and highest performance solution for simultaneous data, digital audio and high-definition video transmission. Two pre-eminent industry groups, the Universal Powerline Association (UPA) and the European Union consortium OPERA (Open PLC European Research Alliance) have adopted DS2 technology in support of multi-vendor standard certified product.   .

About ENDESA
ENDESA is the leading utility in the Spanish electricity system and the number one private-sector multinational electricity utility in Latin America; it is a major operator in the European Mediterranean region, particularly in Italy; it has a growing presence in the various natural gas market segments in Spain and Portugal; its business in the renewable energies field is well consolidated; and it has equity interests in companies in the telecommunications industry and in other services that complement and contribute value to its core business.

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Press Contact for DS2                     
Ann Whyte                              
DS2                                   
+ 34 96 136 60 04                           
ann.whyte@ds2.es                           

Press contact for ENDESA
José Arrojo de Lamo
 ENDESA S.A.
+ 34 91 213 94 70
jarrojo@endesa.es

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