Repsol today issued, through its affiliate Repsol International Finance (RIF), floating rate notes at 18 months and a variable interest rate linked to EURIBOR for an overall amount of 3,250 million euros. The effective cost of this financing operation is currently about 2.74% per year, although the final interest rate for this issue will be fixed at June 10^th next. This is the largest issue of its type by any European company, and illustrates the Euromarket�s capacity to obtain business financing, and the confidence in Repsol of both markets and investors.

This issue is in line with the refinancing plan for the acquisition of YPF. On April 29^th last, Repsol announced its intention to launch a cash tender offer on the 85.01 % shares and ADSs it does not already own in the Argentine company, YPF. This tender offer opened in the United States on April 30^th last, and will open in Argentina on May 24^th next. In both cases, it will expire on June 23^rd.

The aforementioned tender offer, since launched, was backed by a variable interest debt facility from a bank syndicate comprised of BBV, La Caixa, Goldman Sachs, Merrill Lynch, CitiCorp and UBS. Repsol also announced its commitment to refinance this debt facility as soon as possible with instruments optimising its financial structure.

Repsol yesterday informed the Comisi�n Nacional del Mercado de Valores of the Board of Directors� decision to call an Extraordinary General Meeting of Shareholders to be held on June 4^th next on first call, and June 5^th next on second call. One of the items on the Agenda of said Meeting is a 288 million share increase in capital stock, and the issue of medium term convertible securities for an amount of 2 billion euros.

From the date of this announcement to the close of stock markets yesterday, the price of Repsol shares has risen 15.5%, and that of YPF 19.33%.