The Repsol YPF B series preference shares, issued by the affiliate Repsol International Capital Limited, was fully subscribed at May 10^th 2001 for the amount of 1 billion euros, following an increase on the initial offer, as contemplated in the prospectus for this issue, registered at the Spanish Stock Exchange Authorities (Comisi�n Nacional del Mercado de Valores) on April 24^th last.

Repsol YPF International Capital Limited launched an initial offering for 600 million euros, and in view of the high demand, decided to increase the issue to the maximum foreseen of 1 billion euros.

This issue, guaranteed by Repsol YPF, is the first of its kind to be carried out in Spain by a non-financial institution. The shares have the same status as equity shares, and therefore strengthen Repsol YPF�s financial structure by reducing the company�s debt.

The subscription period for this placement, open to all types of investor, was from April 24^th to May 10^th last.

The holders of these shares have preferential dividend rights of a variable and non-cumulative type, paid quarterly, equivalent to the Euribor interest rate of a minimum 4% and maximum 7% AER during the first ten years. From that date onwards, holders will receive a Euribor dividend rate at three months, plus a 3.5% differential.