After finalizing the acquisition of the Argentine company YPF this past June, REPSOL-YPF has decided to write off in the second quarter of this year all the expenses associated with the mentioned acquisition. Said expenses, which add up to approximately 27,000 million pesetas, include, basically, fees for advisory services of banks and consultants, as well as commissions and similar expenses deriving from the obtainment of third-party financing.

These expenses will be registered as Extraordinary Expenses in the statement of REPSOL-YPF corresponding to the second quarter of 1999, which will be communicated to the shareholders ,official organisms and the public on September 1st.