Repsol is pleased to note that the Board of YPF has today unanimously recommended Repsol�s offer for the 85.01% of YPF shares Repsol does not already own.

Repsol�s offer for YPF of $44.78 per share in cash has already commenced in the US, and will start in Argentina on 24 May, 1999. Shareholders who have not already accepted Repsol�s offer but wish to do so are encouraged to tender their shares in YPF no later than June 23, 1999.

Alfonso Cortina, Chairman and Chief Executive Officer of Repsol SA, said:

"We are delighted that YPF�s Board has recommended our offer, as we believe shareholders in both our companies will benefit from the value this excellent combination will create.