IBERDROLA, World Leader in Renewable Energy, Enters the U.S. Market With the Forthcoming Acquisition of Community Energy, Inc.

IBERDROLA, the largest owner and operator of renewable energy facilities in the world, headquartered in Madrid, Spain, and Community Energy, Inc. (CEI), a leading U.S. wind energy marketing and development company based in Wayne, Pennsylvania, announced today a merger agreement in which CEI will be acquired by IBERDROLA.

In announcing the transaction, IBERDROLA President, Ignacio Galan, who is in the U.S. this week meeting with analysts and investors, said: "This transaction combines IBERDROLA's international experience in wind energy ownership and operation with CEI's market leadership and 2,000 MW pipeline of operating and development projects in the U.S., giving IBERDROLA a platform to enter the U.S. wind market quickly and at scale."

Brent Alderfer, CEI President, confirmed the unique value of the merger in the U.S. market: "This is the perfect marriage. It combines the innovation and U.S. market leadership of CEI with the strength and capital of the world's leading wind energy company. IBERDROLA -- with some 3,600 MW of wind energy in commercial operation, a 500 person team dedicated to renewable energy, and an ability to source equipment internationally -- is uniquely poised to accelerate CEI's delivery of wind energy generation to its utility partners and customers."

IBERDROLA recently announced plans to build over 10,000 MW of renewable energy worldwide by the end of 2011. CEI is expected to be a key part of the U.S. strategy and will remain a separate company with its executive and senior management team intact. With the resources and knowledge of IBERDROLA behind it, CEI will continue to expand its marketing partnerships with utilities and customers throughout the country, accelerating the development of wind generation to meet growing demand in the United States.

About IBERDROLA:

IBERDROLA is the largest electricity company on the Iberian Peninsula by installed capacity. The nucleus of the company was founded in 1901 and now serves more than 17.8 million customers (9.7 million in Spain). The arrival of CEO Ignacio Sanchez Galan in 2001 marked a turning point for IBERDROLA. The executive designed a strategic plan that aims to double net income between 2001 and 2006, to 1.6 billion euros.

The significant investment effort made through the recent years, amounting to more than 12.4 billion euros, prompted an increase of 16.3% in IBERDROLA's net profit for the first quarter of 2006, reaching 403.2 million euros. The growth driver of these results has been the good progress of new businesses: the renewables and international areas and gas-fed combined cycles plants.

About Community Energy, Inc.:

Community Energy, Inc. (CEI) is a marketer and developer of wind energy generation founded in 1999 and headquartered in Wayne, Pennsylvania. CEI has over 2 billion kilowatt-hours of wind energy sales, supplying more than 75,000 residential and business customers and 18 investor-owned and municipal utilities. CEI cites its utility partners and customers, which include many of the largest retail purchases of wind energy in the country, as the reason for its success in bringing wind energy to market in new regions of the country. CEI developed and owns an interest in the Bear Creek and Jersey- Atlantic Wind Farm, and has about 2000 megawatts of wind projects under development in the Northeast, Mid-Atlantic and Midwest. http://www.communityenergy.biz.

SOURCE Community Energy, Inc.

News Provided By