Company Profiles

Red Electrica

Spain

As the leading power transmission company in Spain, Red Electrica is responsible for the management of Spain's electricity distribution system. Over the past several years, Spain has become the second-largest European wind-power producer and expects to have wind farms producing 13,000 megawatts by 2011. Given Spain's commitment to the development of renewable energy, Spanish law requires Red Electrica to make capital, research, and development investments to ensure the company supports the growth of wind-power generation sites. As a result, Red Electrica presents Portfolio 21 with a unique investment opportunity in the utility sector through facilitating wind energy generation and distribution via the operation of connecting infrastructure. Red Electrica's expertise in the linking of wind-power generation sites, and experience in managing the electricity flows from these sites, will provide the company with key competencies needed for the continued growth of renewable energy systems. As Red Electrica does not engage in the ownership or operation of traditional power generation facilities, the company does not carry the direct risk exposure associated with those activities, however, it is important to recognize that the majority of the company's services involve the distribution of electricity generated from fossil fuel sources. Red Electrica is well positioned to transmit increasingly larger amounts of renewable energy in an increasingly carbon-constrained economy. Portfolio 21 continues to encourage the company's improvement of its environmental accounting and reporting.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/07 and may not reflect current opinions or subsequent events.