Three wind farms constructed in Galicia under a joint project between Acciona Group, a major engineering and construction group in Spain, and Eurus Energy Group, was put into commission on December 12, 2006, to generate an aggregate output of 93.6MW.

These wind farms are located on the Galician hills featuring a favorable wind regime, and have a total of 72 wind turbines, each rated at 1.3MW.

With the completion of the project, Eurus Energy Group's total installed capacity of aerogenerators in use has increased to about 430MW in Spain, or about 1,320MW all over the world.

Enthusiastic about the adoption of renewable energy sources for power generation, the Spanish Government instituted an incentive plan in 1994 dictating the electric power utilities to purchase electricity generated by independent power producers on renewable energy at premium prices. In 2004, an amendment was made to extend the effective period of such incentive plan until the retirement of the power plants operating on renewable energy sources, thereby encouraging further harnessing of sustainable energy for electric power generation. Spain has wind farms with a total installed capacity of 10,030MW (*) as of the end of 2005, which stands second only to Germany in the world ranking, and is expected to steadily increase its dependence on wind energy.

Business climate is favorable to our Group, particularly in Spain as touched upon above, and since 1998, we have been pushing forward with wind farm projects with center on the Galicia Region in Spain as one of the most important markets in the world. We have so far installed about 600 wind turbines in Spain inclusive of those for the three wind farms reported above. At present, we are constructing four additional wind farms (with installed capacity of approx. 90MW) in Galicia and Asturias.

*) Source: July 2006 issue of Windpower Monthly

Project Overview

• Gamoide Wind Farm: 32.5MW/25 wind turbines
• Buio Wind Farm: 40.3MW/31 wind turbines
• Rioboo Wind Farm: 20.8MW/16 wind turbines
• Location
  Galicia, Spain
• Wind turbines
  1.3MW per unit, manufactured by Navantia, Spain's leading state-owned shipbuilding firm, under a license agreement with Danish wind turbine manufacturer Bonus Energy A/S (now taken over by Siemens)
• Total project cost
  Approximately Euro 124 million
• Ownership
  Acciona Group, 50%, and Eurus Energy Group, 50%
• Electricity supplied to and purchased by
  Electra de Viesgo, a local power distributing company

The first phase of the Gangwon Wind Park in South Korea, which is our first Asian project outside Japan, has been in commercial operation since the end of last year to deliver 28MW of electric energy. The second and third phase of the project have just been completed to put 49 wind turbines (each rated at 2MW) into active service to generate a total output of 98MW, the largest wind power generating capacity in South Korea.

The Gangwon Wind Park is located in Deakwanyneng, Gangwon-do, in the northeast of South Korea, and about 150km away from Seoul. It is on the heights at an elevation of about 800m above sea, and can command a view of the Sea of Japan when weather is fine. This area is windy throughout the year, featuring an annual average breeze of 7 meters per second to make the site ideal for wind power generation.

Gangwon-do area is blessed with beautiful sea, lakes and other scenic spots, and is one of the most favorite tourist spots in South Korea. It also is frequently used as a filming location. An echelon of 100m-high windmills is expected to be talked about highly as a new symbol to the region.

The Gangwon Wind Park has been authorized by the United Nations as a CDM (Clean Development Mechanism) Project in accordance with Kyoto Protocol.

While South Korea has a plan to increase wind power generation up to 2,250MW by 2011, its cumulative installed capacity is still at a level of about 120MW(*) as of the end of 2005. In an effort to promote wind power harnessing projects, the South Korean Government has amended at the end of last month its "Standard Pricing Policy for Electric Energy Generated on New Renewable Resources" to extend the deadline for completion of energy projects from the 10th day of this October till October 10, 2020, so that more projects will benefit from the government's incentive scheme of purchasing energy at premium prices. This government support will help accelerate the expansion of wind power business in South Korea.

Eurus Energy Group intends to expand our operation in this favorable business climate in South Korea as one of the most important markets for us.

* Source: July,2006 issue of Windpower Monthly

Eurus Energy Group ("Eurus") completed a 54.45MW wind farm in Illinois, U.S.A. to launch its first wind-power generation business in the Midwest region of the United States. Developed and constructed by Eurus about 180km west of Chicago, this Crescent Ridge wind farm is co-owned by Eurus, Babcock & Brown Wind Partners Group, and other investors.

In 1987, Eurus commissioned a 5MW pilot plant in California. Since then, Eurus continued to develop wind farms in California, and Oregon. The Crescent Ridge wind farm introduced here is expected to secure a foothold for advancement into the Midwest region of the United States. With the addition of this project, Eurus' total installed capacity has increased to about 340MW in the United States and to about 1,160MW in the world.

The cumulative total of the installed capacity of wind farms in the United States as of the end of 2005 is 9,140MW, and ranked third in the world (Source: July, 2006 issue of Windpower Monthly). Windpower generating capacity in the U.S. grew by 2,400MW last year, the highest growth ever achieved; due partly to the U.S. Government decision to extend the tax incentives for renewable energy source development to only December, 2007 and due partly to the continuing rise in fossil fuel prices. It is viewed that the windpower generation market in the U.S. will likely enjoy continued vibrancy for the foreseeable future.

Eurus is determined to actively pursue the U.S. market with its high growth potential.

Project Overview
Project	Crescent Ridge Wind Farm
Location	Illinois, U.S.A.
Total project cost	Approximately US$75 million (Approximately J.Yen 8.5billion)
Owners	Eurus Energy Group, Babcock & Brown Wind Partners Group, and financial investors
Total output	54.45 MW (1.65MW x 33units)
Sales target	PJM wholesale power pool

Eurus Energy Group today held solemn ceremonial groundbreaking ritual to pray for the safety and successful completion of Seto Wind Farm, our first project in Shikoku.

The Wind Farm will use four units of wind turbine generator imported from Gamesa Eolica (Spain), each with an output rating of 2MW, presently the largest of its kind in Japan. The height of the tower is 60 meters, and the diameter of the rotor is 80 meters. The installation of wind turbine generators of this class is the first example in Shikoku.

It is scheduled to commence the construction work in May 2006 and start commercial operation in March 2007. All of the electric energy generated will be sold to Shikoku Electric Power Co., Inc.