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ABENGOA Activity Report 200555

Information Technologies

Telvent, the holding company of Abengoa’s businesses in the Information Technologysector, provides high value-added solutions in four industrial sectors (Energy, Traffic,Transport, and the Environment). Its technology allows companies to make real-timebusiness decisions utilizing data control and acquisition systems, as well asleading-edge operational applications that provide companies with secure andefficient information.

International leader in the energy, traffic, transport andenvironment sectors

With Information Technology… we transform data intoknowledge, providing effective operational and business real-timedecision making for traffic, transport, energy and environment

www.telvent.com



Energy

Electric

During 2005 the growth rate of recent years wasmaintained, consolidating Telvent’s leadershipposition in Spain, Mexico and Brazil, both fortelecontrol equipment, including SCADA systems, aswell as high-level management systems. The latterarea represents a new segment in which Telvent ispositioning itself, derived from developments thatare the result of an ambitious R&D&I policy as wellas by means of acquisitions such as Miner&Miner,whose applications are a worldwide reference forthe management of technology assets for electricalcompanies, based on geospatial-referencedinformation.

In Spain, the investment effort by the majorelectrical companies has continued in response tothe increase of demand, as well as the ongoingimprovement and enlargement of electrical systemsin distribution and transmission. Investment plansfor the coming years indicate that strong customerdemand and technological alliances will continue tobe the norm, enabling Telvent to maintain andimprove its privileged position in this market.

In Mexico and Brazil, Telvent has obtained importantcontracts, especially in the transmission segment.This sector is particularly active in both countries dueto the government initiative to reinforce the high-voltage networks and extend the supply of reliableelectrical energy to those geographical areas thatwere previously unable to obtain an adequate supplyof electricity.

In the rest of Latin America, it has been an especiallypositive year for Telvent, which has againsuccessfully executed several large projects andobtained valuable new references after some yearsin which the market was experiencing uncertainty. Incountries such as Paraguay, Colombia, Chile,Argentina, Venezuela, and Peru a very intensivecommercial and project execution program has beendeveloped. Based on these and other developments,it is clear that Latin America has finally reassumed itsrole as one of Telvent’s main strategic areas fordevelopment.

By the end of the year the first customer reference inautomatic metering reading (AMR) systems wasobtained as a result of the awarding of theAMRELVA3 Project for the Vattenfall Swedishdistributor for a total amount of 67 Million Euros.The awarding of this huge project is the result ofyears of continued investment in the development ofelectric measurement solutions. This in turn willenable Telvent to position itself as one of the mainplayers at the worldwide level in this business sector.Substantial growth in this sector is expected here inall of the geographical areas during coming decades.

Within the Electric sector, the most significantproject awards during the year 2005 include thefollowing:

In Spain:

• Contract for the Remote Energy Command Systemfor the AVE (High-Speed Train) between Cordobaand Malaga, for ADIF. This project encompassesthe complete turnkey supply of all the equipmentat the Control Center level and field level alongthe line.

• Supply, Installation and Commissioning of ControlSystems, based on Telvent’s technology for thesub-stations of the Transmission Network of RedEléctrica de España.



• Supply, Engineering, Installation andCommissioning of Control Systems for thesubstations for the Distribution Network ofSevillana Endesa in the regions of Andalusia andExtremadura, in Southern Spain.

• Contract with Endesa for the Supply, Engineering,Installation and Commissioning of the RemoteControl Equipment for the management of theElectric Network at medium-voltage level.

• Open Contract for the Supply of RTUs (remoteterminal units) for the Northwest HydraulicProduction Unit of Endesa Generacion. TheseRTUs will be installed in hydroelectric stationswhere the control and supervision functions of thestation will be assumed, ensuring the operation ofthese installations, which are fundamental inmaintaining an efficient and balanced energyprogram for the country.

• Contract for the Control Engineering, Supply andTesting of the Distributed Control System for thesolar plains PS10, PS20 and PV that Abener isbuilding for the Sociedad Solucar Solar in Sanlucarla Mayor (Seville).

In North America:

• Contract with Taunton Municipal Lighting Plantto upgrade their existing DistributionManagement System. The upgrade will utilizeTelvent’s latest-generation OASyS DNA supervisorycontrol and information management systemtechnology.

• Contract with Silicon Valley Power to implementArcFM and Responder OMS.

• Contract with Salem Electric Department toupgrade the City of Salem’s existing DistributionManagement System with the latest OASyS DNAtechnology platform.

• Contract with Northern Virginia ElectricCooperative to implement ArcFM and Designer astheir enterprise GIS asset management and designsolution.

• Contract with Eugene Water & Electric Board toimplement ArcFM, Responder OMS, and ArcFMViewer.

• Contract with CoServ, a not-for-profit utilityserving Northern Texas, to provide the Responderoutage management system, which will facilitateeffective power restoration for its 105,000electric, retail, and business customers.

• Orlando Utilities Commission contracted toimplement ArcFM Viewer as a mobile applicationfor its 190,000 electric customers and 130,000water customers.

In Latin America:

• Contract for the supply of the SCADA System forthe Edenor company, which is one of the primarydistributors of Electric Energy in Buenos Aires(Argentina).

• Control, Protection and TelecommunicationSystems for the Substations for the High-Voltageline Colinas-Ribeiro Gonçalves-São José de Piauí-Sobradinho for Abengoa Brasil, who work asconcessionaire and contractor ofthe National Agency of ElectricEnergy (ANEEL) in Brazil.

• Control and Protection Systemsfor nine Substations for theElectric Energy TransmissionNetwork of Mexico for theFederal Commission ofElectricity.

• Contract for the DistributedControl System for theRemodeling andTransformation in a CombinedCycle layout of the ThermalGeneration Plant Emilio PortesGil, which is being executed byAbener Energía S.A. for theFederal Commission ofElectricity in Mexico.

In other countries:

• Contract for the Supply,Installation, Support andMaintenance of 300,000 housecounters along the whole territoryof Sweden for Vattenfall. With thiscontract, the complete service of electric energymeasurement management, a process absolutelycritical for a company like Vattenfall, which is thefifth electric group in Europe.



Oil and Gas

In 2005, Telvent completed a targeted transitionfrom a data acquisition and control applicationprovider into an enterprise level, integrated solutionprovider of business applications and ITinfrastructure. This in turn has enabled Telvent’s oiland gas customers to transition their operationsinto a secure, truly RealTime IT enabled business.This strategic shift was made possible not onlythrough continuous improvements in Telvent’sproducts and services, but also the added strengthand flexibility contributed by the strategic alliancesthat Telvent has created with SAP, ESRI, Symantecand OSIsoft during the past year.

In Mexico Telvent continued with its leadershipposition obtaining new customer references, whichhas allowed us to maintain our ongoing relationshipwith the three major companies that manage theOil & Gas business in Mexico: Pemex Exploración yProducción, Pemex Gas y Petroquímica Básica andPemex Refinación. Including the recently awardedprojects, Telvent will have supplied 39 of the 50SIMCOTs (system for control and measurement) thatPEMEX Refinación, which accounts for 80% of thedepots in Mexico.

In Spain, we have continued the commercial activityand execution of projects with several majorcompanies that have been customers of Telvent forseveral years, such as CLH and Gas Natural.Concerning CLH, it is significant to recognize thelaunch of the APAS Project, designed to manage allof the product movement through the Spanish OilPipeline Network, based on the Simsuite productdeveloped completely by Telvent.

Regarding the development of new products in2005 the development of the gasCAT solutionfamily for the remote control of installations wascompleted. This family includes several remotesystems and modules that make it possible toconfigure solutions that are fully adapted to thevarying and demanding requirements of customerinstallations in the gas transportion and distributionbusiness.

The global energy industry continues to look at thedirection, initiatives and projects of the North

American oil and gas sector as a blueprint for theirfuture investments and success. Telvent’s strongperformance in North America and abroad during2005 signifies an increasingly important role for thiscompany in energy infrastructure development inthe years to come.

Within the Oil and Gas sector, the most significantproject awards during the year 2005 include thefollowing:

In Spain:

• Contract with Compañía Logística deHidrocarburos in Spain for the Advanced SoftwareApplications System Project (also known as theCLH SimSuite Pipeline Project). Telvent will supplya full suite of pipeline simulation products,including high fidelity leak detection, batchtracking, operational forecasting, poweroptimization and operator training simulation.

In North America:

• Pembina OPANS to POLARIS Migration Study(Phase 1). Telvent was awarded a consultingcontract to assist Pembina Pipeline Income Fundwith the migration planning for their oilmovement and accounting system (OPANS). Thescope includes a migration plan for the existingPembina application using the Polaris POLARISframework as a basis for new development.

• Pembina SimSuite Leak Detection Pilot Project(Phase 2). Telvent signed a contract with PembinaPipeline Income Fund to engage in a pilot projectaimed at demonstrating the capabilities of itsSimSuite Pipeline Leak Detection System (LDS).

• Contract with Buckeye Partners LP to replaceBuckeye’s existing OASyS 5.2.2 system atMacungie, Pennsylvania.

• Contract with Southern Star Central Gas Pipelineto upgrade their existing SCADA andmeasurement system, including the pollingnetwork and Control and Measurement portions.

• Contract with Equistar Pipeline Company toreplace and upgrade the informationmanagement, monitoring and control system onits products pipeline system.

• Contract with Gibsons Energy to upgrade theirexisting SCADA system. The upgrade will benefit



the planned expansion of a crude oil blendingfacility to be built in Edmonton (Canada), a facilitythat will also act as a back-up for the mainterminal at Hardisty (Canada).

• Telvent was selected to provide CenterPointEnergy with a Distribution Automation ControlSystem (DACS).

• Contract with TEPPCO to provide a SimSuitePipeline Operator Trainer and the SimSuite PipelineEngineering and Analysis Tool

• Contract with New Jersey Natural Gas toimplement ArcFM and Designer as their enterpriseGIS.

In Latin America:

• Contract with PEMEX Refinación to implement acontrol system to manage their storage anddistribution depots.

• Completion of a contract with Metrogas, thelargest natural gas distribution company in Chile,of an ArcFM implementation, includingintegration to SAP.

• Contract with Energía Mayakán. Telvent achievedmechanical completion for the delivery of Phase IIof the Ciudad Pemex to the Yucatan Peninsula gasdistribution pipeline project.

In China:

• Alashankou-Dushenzi. Telvent was awarded thecontract for the Alashankou-Dushenzi crude oilpipeline SCADA system by the China PetroleumMaterial and Equipment Corporation (CPMEC).

• Guangdong Dapeng LNG. Telvent was selected toprovide its Gas Measurement & AccountingSystem (GMAS), Gas Day Operations (GDO) andPipeline Operations Logistics And RevenueInformation System (POLARIS) businessapplications for the Guangdong Dapeng LiquefiedNatural Gas (GDLNG) Project.

• Chongqing Gas Group Corporation. Telvent wasselected to provide a SCADA solution (OASySDNA) for Chongqing Gas Group’s Gas DistributionSystem.

• Sinopec (Luwan Pipeline). Telvent will install itsOASyS system on site starting with setup,configuration and testing, on the new 583-kilometer Luwan products pipeline.

In other countries:

• Contract with Società Gasdotti Italia S.p.A.(formerly Edison Gas) for ongoing maintenanceand system enhancements.

• Contract with Saudi Aramco Service Company toupgrade the Communications Supervisor AlarmSystem. Saudia Aramco has added new RTUdevices to their system that require anotherprotocol DNP3, which Telvent will be providing aswell.

• Indian Oil Corporation. Telvent was awarded avalue added reseller contract with Larsen andToubro Limited to supply the Paradip to Haldiaproducts pipeline SCADA system in India.

• Contract with Energex Gas to provide ArcFM forgas network management.

• Completion of the Trans Thailand Malyasiapipeline software acceptance test. The projectinvolves onshore and offshore pipelines thattransport gas from the Malaysian-Thai JointDevelopment Area (offshore) to the PeninsularGas Utilization pipeline at Changlun in Kedah,Malaysia. This linkage will mark a major steptowards realizing the trans-ASEAN Gas Gridproject.



Traffic

Telvent has continued to strengthen its position as anational and international leader in products,applications and services for the Intelligent TrafficSystems sector, both in urban and interurban settings,offering global solutions for traffic control problemsin cities and for the control, surveillance andmanagement of highways. The installed systems aredesigned to provide enhanced optimization of thelevel of traffic service conditions, while contributingto the overall safety of highway infrastructure.

The level of technological evolution and theconsolidation of the national market after 30 years inthe sector have been the key factors that haveboosted international growth.

In the international traffic sector, 2005 was a year inwhich record contracting figures were achieved andalso the year in which Telvent commenced operationsin new markets such as Ireland and Lebanon,countries in which technologically significant projectswere executed. In Latin America, Brazil remains in aneconomic slowdown, continuing to postponeinvestments in traffic and transport infrastructuresand in information technologies. On the other hand,however, there has been increased project activity inArgentina. It is important to note that in China,Telvent’s project success continues to demonstrate itsundeniable leadership in the traffic sector.

Within the Traffic sector, the most significant projectawards during the year 2005 include the following:

In Spain:

• Completion of the enlargement of the security andcontrol systems for the La Caniza tunnel(Pontevedra).

• Completion of the adaptation and repositioning ofaffected services for the CCTV infrastructures andFiber Optics network, Traffic Control systems forfacility and surrounding area access and theassociated equipment for the MunicipalityCoordination Center at the Barcelona 2004 Forum.

• Completion of the installation of signposting andcontrol equipment for the M-50 highway betweenthe A-1 and A-2 highways (Madrid).

• Completion of the dynamic signposting and Traffic

management in the A-8 highway, specifically, theSantander - Castro Urdiales and Torrelavega –Pesues sections; the A-67 highway, at the Polanco -Torrelavega - Los Corrales de Buelna section; andthe S-20 highway, Northern Ring Road inSantander.

• Completion of the supply and installation of thesystems included in the Traffic management projectfor the city of Ceuta.

• Completion of the control center and installation ofTraffic Control systems and road security, accesscontrol and the exploitation aid systems for UrbanTransport (Tetra communications network),included in the Almeria Digital City project.

• Award of the integrated Improvement Plan for thePublic Space in the city of Barcelona. 2004-2007.This contract includes the total renewal of thepublic lighting and the improvement of the trafficlights.

• Contract for the improvement of the HighwaySecurity, Dynamic Signposting and Surveillance ofTraffic Status on the most important incomingroads for the city of Almeria, the systemmanagement for which will be facililtated form theControl Center installation, which is also part of thecontract.

• Contract for the installation of cinemometers in thetraffic management center located in Madrid andthe management of the procedures required tofacilitate quicker processing of potentialcomplaints.

• Contract for the maintenance, repair, andadaptation of traffic lights and Traffic Regulationsystems for Barcelona city.

• Contract for the maintenance of all of theinstallation sites and related equipment located onthe highways as well as the Management andCommunications Center that controls the Trafficsystems for the access roads to Zaragoza city andthe access roads to the Central Pyrenees.

• Contract for the supply and installation of thecontrol, display and management equipment forthe new traffic control room for the City Hall ofMadrid.

• Award of the Signposting system equipment, TrafficControl, CCTV, SOS (Emergency) posts,communications and control center (ITS Project) forthe Toll Highway Madrid-Levante, Ocaña-La Rodasection, and its maintenance for a two-year period(Castilla La Mancha).



• Contract for the supply of 2603 HandheldCommunications Terminals and associatedcomputer applications for the Traffic Group of theGuardia Civil (Police Dept.), for the automatedmanagement of Traffic Infractions governed by theCirculation Regulations (PRIDE Project).

In Latin America:

• Contract for the SOS post system from the ViaOeste Concessionaire in the Brazilian State of SaoPaolo. With this contract, Telvent consolidates itsleadership in the traffic sector, where its trafficcontrol and toll system technology is being utilizedby seven of the country’s concessionaires.

• Inauguration of the Traffic Control Center for theIntervías Highway in the State of Sao Paolo, Brazil.

• Two-year renewal of the traffic-light installationsmaintenance contract for the city of Rio de Janeiro,Brazil.

• Renewal of the toll system maintenance contractsfor the Rodovías, Autovías and Centrovías highwaysin the State of Sao Paolo, Brazil.

• Contract for the maintenance service andimprovement works project for traffic-lightinstallations in the city of Buenos Aires, Argentina,for the next three years.

• Contract for the red light infraction detectionsystem operation service and implementation of thetraffic-light installation improvement project in thecity of Rosario, Argentina, for the next 4 years.

• Contract for the maintenance service andimplementation of the traffic-light installationimprovement project and updating of the Optimustraffic control application for the city of Cordoba,Argentina, for the next 3 years.

• Contract for the modernization of the city ofGuadalajara traffic management system which willenable monitoring of more than 800 intersectionsand Telvent RMY model traffic controllers from asingle control center that will utilize Optimusapplication technology.

In China:

• Project awarded for the Urban Traffic Control (UTC)System for the city of Jin Cheng in the province ofShan Xi, based on the Telvent ITACA application.

• Project awarded for the city of Batou road laneTraffic Control System, Inner Mongolia.

• Inauguration of the city of Peking highway TrafficControl Center, from where all the traffic on theaccess networks and the highway lane traffic of thecity of Peking will be controlled for the 2008Olympic Games.

In other countries:

• Contract awarded for the N4/N6 Kinnegad-Kilcockmotorway toll system in Ireland where, in additionto installing its SmartTOLL solution, Telvent has alsosupplied its in-house OBEs and antennae for Tele-tolling.

• Project contract for the implementation of the cityof Beirut (Lebanon) urban traffic control systemswhere, in addition to its urban traffic ITACAsolution and red light infraction data acquisitionsystem, Telvent will also provide the city withpowerful GIS technology based tools forinfrastructure and maintenance management.

• Inauguration of the Bucharest – Cernavodahighway Traffic Control Center, in Romania.

• Ten-year upgrading and technical assistancecontract for the SCADA system technology thatmanages the Oresund Link (between Sweden andDenmark) traffic and infrastructures, which is basedon the Telvent OASyS solution.

• Inauguration of the city of Ho Chi Min TrafficControl Center, from where the traffic of theVietnam city is managed by means of an ITACAapplication.

• Telvent has consolidated its position in the Tags andAntennae product market, where it now has almost50,000 Tags and 200 antennas distributed betweenSpain and Ireland. It has also obtained installationconfirmation for these same antennae for the Brazilmarket.



Transport

The year 2005 saw the consolidation of theTransport sector solutions, applications andequipment, for which investments in technologyhad been made over the last few years. It alsoconfirmed the road to growth established for thisactivity over forthcoming years.

Telvent has completed the development of “e-trans”, its payment platform for transport systems,on which the Mobifast solutions for managementof accesses and public transport ticket sales, andWeb.Park for the management of parking lots, arebased. Both platforms include the most advancedcoin control and credit card/contact-less chip cardpayment technology. This continuous focus ontechnological innovation has positioned Telvent asthe leader in the Ticketing segment in both thenational and international levels.

In Spain, the sales volume with recurring customerssuch as Metro de Madrid, Metro de Bilbao, FEVE,Adif and Cintra has increased, through newproducts and solutions for station and railwaysignaling control systems, access control systemsand automatic transport ticket vending machinesand parking lot control systems. Of special notewas the consolidation of Telvent’s leadership in CFC(Contact-free Card) technology through the awardof a contract to install and implement CFC readersat the accesses to Zone A (Center) of MadridMetro. This project was awarded following thesuccessful completion, in 2004, of the pilot CFCreader implementation program. This project willachieve greater flexibility in fare management onthe Madrid transport network and will optimize theregulating of traveler access through theinstallation of contact-free payment technology.

In the railway control and signposting industry, thedevelopment of a new applications line for theautomatic regulation of trains (REGULA Project)continues in collaboration with various strategiccustomers. This is in addition to, and complementsthe current line of products of Traffic ControlCenters and Telecontrol of equipment and stations.

In the international market it is important tohighlight the consolidation of the internationalexpansion strategy of Telvent with the awarding ofthe contract for the development and installationof the Ticketing System and the TravelerInformation System for the railway project betweenCaracas and Puy (Venezuela), which will make itpossible to manage travel information and offerimproved customer service.



Within the Transport sector, the most significantproject awards during the year 2005 include thefollowing:

In Spain:

• Pilot Project for the Implementation of Type AContact-free Validation Technology Metrosur(Metro Madrid).

• First phase of the Contact-less cardImplementation Project; validation equipment atArea A toll stations (Metro Madrid).

• Supply and Installation of 53 Automatic TicketVending Machines (RENFE San Sebastian).

• Supply and Installation of Access Controlequipment for travelers in the Suburban RailroadStations of Bilbao (RENFE).

• Supply and Installation of an Access ControlSystem and Automatic Vending Machines for thePortugalete and Abatxolo Stations of line 2 ofMetro Bilbao.

• Supply and Implementation of toll equipment forthe access control of travelers for different stationsof lines 4 and 5, enlargement of lines 1 and 11 ofMetro Madrid.

• Renewal of the Railroad Traffic Control Center ofSantander (FEVE)

• Integration of the Vic-Ripoll-Puigcerda line in theRailroad Control Center of Barcelona. (ADIF)

• Integration of the Hospitalet, LaTorrasa-Sants andSant Boi de Llobregat-Hospitalet section in theControl Center of Barcelona (ADIF).

• Modifications of the Control Center of Barcelonadue to the enlargement of platforms and lineconditioning in the Barcelona’s Francia Station.Remodeling and enlargement of the line beam ofthe Proximity base in Montcada, junction andenlargement of line capacity of the San AndresCondal station (ADIF).

• Supply and Installation of equipment anddevelopment and system/software integrationservices required for the implementation of theTeleparking System (Interoperable with VIA-T),under the Web.Park Platform (CintraAparcamientos-Barcelona).

• Contract for the Supply and Installation of themanagement and control system for 5 parking lotsin Vilanova i la Geltrú. Serveis d’Aparcaments deVilanova i la Geltrú.

• Integration of the identification plate recognitionsystem in the management and control systemsfor parking lots that Cintra Aparcamientosoperates.

• Control and Management System for Parking lotsin the three new parking lots (Zarauz, Sant Cugatdel Valles, Hospital Ramón y Cajal, in Madrid)belonging to Cintra Aparcamientos.

In Latin America:

• Supply and Installation of the Access ControlSystem and Automatic Vending System andTraveler Information System for the railroadproject between Caracas and Tuy. (Venezuela)

• Finalization and Inauguration of the accesscontrol system for the Belo Horizonte Metro.

In China:

• Completion of the first phase of the projectbeing executed for the city of Tianjin metrosystem, which consisted of the publicopening in “free tour” mode of the Tianjinmetro Access and Automatic Ticket SalesSystems. The system, based on contact-freecard technology and tokens is currentlyconsidered to be the most advanced metroticketing system project in China and isbecoming a reference for the future metrosystems currently at the development phasein China.



Environment

In 2005, Telvent continued with the globalexpansion of its Environment business, andespecially the meteorological business as a result ofthe acquisition of Almos Systems, through whichTelvent has obtained access to a set of value-addedmeteorological solutions, and has also gainedstrategic entry to new geographical and high growthpotential areas of the world, including Asia-Pacificand Europe. Based on this industry portfolioincreasing steadily to reach 30 million euro by theend of 2005 (50% more than the figure one yearago), the acquisition of Almos Systems willcontribute with a significant additional portfolio of20 million euro.

In 2005, Telvent has renewed its leadership positionin Spain in the fields of Meteorology, Water andEnvironmental Protection. In addition to renewing allof its current maintenance, the most importantmeteorological equipment contracts with theInstituto Nacional de Meteorologia and AENA(Spanish Airport Authorities) have been awarded.

At a national level, two significant contracts shouldbe highlighted:

The first Telvent Contract for a Traffic administrationsystem in North America was awarded by theMinistry of Infrastructures and Transport of Alberta(AIT) for the implementation and operation of aMeteorological Information and Prediction System(RWIS) for a period of 10 years, for the highwaynetwork in the province of Alberta, Canada.

The first Contract in the field of Environment inBrazil, consisting of a water supply control andmanagement system for the metropolitan area ofBelo Horizonte, was awarded to Telvent by Copasa.The project scope also covers the installation of aSCADA system that will include GIS and value-addedapplications such as hydraulic consumptionsimulation and prediction models, as well as assetmanagement and maintenance managementsystems. The Copasa Project will enable theintegration of the Miner & Miner products inTelvent’s global solution for water utilities.

Within the Environment sector, the most significantproject awards during the year 2005 include thefollowing:

In Spain:

• Installation and Commissioning Contract for aMeteorological Radar System on Majorca for theNational Institute of Meteorology.

• Supply and Installation Contract, in operatingconditions, of an Automated Information Systemfor the Terminal Area (ATIS) of the Gran Canaria,Malaga and Palma de Majorca Airports.

• Contract for the Update of the existingMeteorological Communications ManagementEquipment (ECGM) of 35 Spanish airports, sothey can fulfill the new Amendment Nº 73 of theICAO., for the Spanish Airport and Air NavigationAuthority (AENA). This project was alsocompleted in 2005.

• Contracts for the Renewal of the MaintenanceService for the Meteorological ObservationEquipment in airports and air bases, andmeteorological radar for the National Institute ofMeteorology.

• Contract for the supply of Meteorological AidSystems for the Palma de Majorca airport and the



FAMET Base of Almagro, for the National Instituteof Meteorology.

• Contract for the supply, installation, andcommissioning of the Tetra (Telvent TetraNode)Digital Radio-communications Systems for theMenorca and Seville airports, for the SpanishAirport and Air Navigation Authority (AENA).

• Renewal of the Contracts for Maintenance andManagement of Emission (CEM) and Immission(RVCA) Network Data of atmospheric pollutants forthe following companies: Viesgo, Cepsa , Holcin ,Union Fenosa and Covisa.

• Renewal of the Maintenance Contract for the AirQuality Surveillance Network of Seville, for theSeville City Hall.

• Renewal of the Maintenance Contract for the AirQuality Surveillance Network of Valencia, for thelocal government (Generalitat) of Valencia.

• Two-year Contract for the Exploitation andMaintenance Services for the AutomaticHydrological Information System for theHydrographical Basin of the Guadalquivir River, forthe Ministry of Environment. This contract is beingexecuted jointly with Befesa Construccion yTecnologia Ambiental, a subsidiary of Abengoa.

• Contract for the Enlargement of the AutomaticHydrological Information System (SAIH) of theHydrographical Basin of the Guadalquivir River, forthe Ministry of Environment. This contract is beingexecuted jointly with Befesa Construccion yTecnologia Ambiental, a subsidiary of Abengoa.

• Commissioning of the Low Level Wind Shear AlertSystem (LLWAS) for the Reina Sofia airport in SouthTenerife, for the National Institute of Meteorology.This system is the first to be in service in Europe,and will enable wind shear event notification toaircraft pilots and air controllers in real time duringthe take off and landing operations.

• Commissioning of the new ATIS Systems for theMalaga and Palma de Majorca airports has beencompleted. With the use of the ATIS System,Telvent will dramatically reduce the load of land-airvoice communications in the VHF band, allowingcontrollers to increase their focus on Air TrafficManagement tasks.

In Europe:

• Contract with the Dutch Air Force for the softwareand hardware update of their MeteorologicalPrediction System (METIS).

• Contract for the supply, installation, andcommissioning of an Air Navigation Aid Systemnetwork in seven airports in Belgium, forBelgocontrol. The installation and acceptance testof the first of the seven systems was completedsuccessfully for the Brussels Airport.

• Supply, Installation and Commissioning Contractfor the National Network of AutomaticMeteorological Stations (400) of Switzerland forMeteoSwiss. In 2005 the initial pilot phase wascompleted successfully.

• Contract for the supply of new meteorologicalprediction systems for the Air Force of Belgium(BAF). The installation of the pilot systems isfinished; at present, they are in the evaluationperiod by the BAF.

• Contract with RWE Thames Water to complete aCorporate GIS Solution. The water company serves13 million wastewater customers and eight millionwater customers in London and the Thames Valley.

In North America:

• Contract with the Alberta Infrastructure andTransportation Ministry (AIT), for ten years, tosupply, integrate and manage the Road WeatherInformation System (RWIS) on several highways inthe province of Alberta, Canada.

• Improvement of the Automation System for theWater Processing Plant of Dublin Rd., for the city ofColumbus.



• Contract for the supply of the Water SupplyNetwork Operation System for the city ofAlbuquerque (New Mexico), updating to OASySDNA the existing OASyS 6.2 NT System.

• Contract with the City of Winnipeg to replace theoriginal SCADA system installed in the 1990’s,which is used to monitor and control the variouswater collection, storage, treatment, anddistribution facilities throughout the City, and theaqueduct inlet.

• Contract with the City of Lee’s Summit to upgradethe City’s supervisory control and data acquisition(SCADA) system used in the City’s daily waterutilities operations.

In Latin America:

• Inauguration of the Meteorological Radar systemfor the State Commission of State Water (CEA) inQueretaro, Mexico.

• Contract for the supply, installation, andcommissioning of a Satellite Surveillance Systemfor the Hydro-Telemetry stations of Edegel, Peru.

• Contract for the supply of a remote monitoringand macro-measuring system for sources andstations, connecting into the control center,utilizing an OASyS DNA platform, in turnkeymode, for the Operating Organization ofDrinkable Water, Sewage and Drainage (OOAPAS),of Morelia (Mexico).

• Contract for the supply of the Processed WaterDistribution Automating System and GeographicalInformation System (GIS) for the MetropolitanRegion of Belo Horizonte (RMBH) for theCompanhia de Saneamento de Aguas de MinasGerais (Copasa), MG-Brazil. Telvent will beresponsible for the implementation andintegration of specialized software for theTelemetry, Tele-control and Tele-surveillance of theentire Processed Water Distribution Network ofRMBH

In other countries:

• Contract for the detailed design of a MeteorologyPrediction and Data Processing System for theGeneral Management of Civil Aviation in Kuwait.

This system makes up the basic structure of theNational Meteorology System, and includes super-computers that execute numerical predictionmodels, manage climate data bases and produceweather and climate predictions at the nationallevel. The system includes a land satellite station, amessaging switcher (AFTN/GTS), D-ATIS/D-VOLMET, a TV Studio and pilot terminals for reportself-generation.

• Contract for the design and turnkeyimplementation of a national network ofAutomatic Weather Stations (AWS) for theGeneral Management of Civil Aviation in Kuwait.All of the marine and land meteorologicalobservation systems for the Meteorology NationalService of the Kuwait State will be fully integrated.The Factory Acceptance Tests were performedsuccessfully in 2005.

• Contract with Townsville City Council, in NorthQueensland, Australia, to deploy ArcFM formanagement of their water, wastewater, andstormwater networks.



Public Administration, Health, Outsourcing andTechnologies Infrastructure Management

A small percentage of Telvent’s business has historicallyprovided opportunities for opening new business linesthat we believe will satisfy one of the following tworequirements: potential to transform into a strongsector in the future; possibility to provide access to newtechnologies or services that can be applied to areas inwhich we operate (or are conducting research anddevelopment activities).

In 2005, the activity in the Health and PublicAdministration market segments corresponded to 6%of the total business of Telvent, having had a growth of100% in a one-year period, which consolidates thisbusiness as a new vertical business in Telvent. Thestrategy for this market was based on a stronginvestment in R&D&I; for example, in the Healthmarket, it has consolidated the TiCares product suite,making it a leading product in Spain. Also, in the e-Government strategy, the continuous investment inTiWorks turned it into a market leading solution in theCentral and Local Administrations.

Within the Public Administration area, the mostsignificant project awards during the year 2005 includethe following:

• Maintenance and Support service contracts for theCarlos Haya hospital in Málaga, the Inmaculadahospital in Huercal-Overa, the Jerez de la Fronterahospital, the University Hospital in Puerto Real, theUniversity Complex of Torrecardenas in Almeria, theVirgen de las Nieves hospital in Granada and theVirgen Macarena hospital in Seville, as well as thePatient Information Systems contract award for theAndalusian Health Service.

• Contract for the Maintenance Service for theProduction Applications for the First Level of theSystems Plan for Servei Catala de la Salut.

• Integrated Command Station for the AndalusianHealth Council; during the month of November thedesign milestone of the Pilot Phase of the Project wasaccomplished.

• Contract for the Management and InformationSystem for the Early Colon and Rectum CancerDetection Program for the Institut Català d’Oncologia(ICO).

• In the RIS-PACS Area, the contract awards weremade for system installation work for the Juan

Ramon Jimenez hospital in Huelva, and for theAntequera hospital and the Soria hospital. TheCentralized RIS of the SAS was also consolidated,which is unique in its class Spain.

• A contract award from the Andalusian HealthService for Corrective and EvolutionaryMaintenance Service, as well as technical supportfor the information systems of the hospitals inBaza, Motril and Algeciras.

In the Central Administration sector, this past year hasbeen very important, because customers have beenconsolidated, and two new client references havebeen created. This represents an important stepforward in the development strategy of the digitalgovernment for Telvent, the highlights for which areincluded below:

• Ministry of Public Administrations:Development, Hosting, and Operationof the validation platform andcorporate signatures, based on theTiSigns product, which is part of theTiWorks Suite. This project representsthe consolidation at the national levelfor this signature product from Telvent.

• Spanish Police: Passport ForgeryManagement System for all of theSpanish borders, which has created oneof our most important client references at theEuropean level.

• Other customers from which we have obtainedreferences are: the Ministry of Promotion, theMinistry of Economics, the Tobacco Commissioner,the CMT, and the CNE, which allows Telvent to beinvolved in one-half of the Spanish Ministries.

Within the Local Administration area, the mostsignificant project awards during the year 2005include the following:

• In the Almeria City Hall, within the administrativeconcession for the design, building, andexploitation of an Advanced Digital Services Centerfor the urbanization of «El Toyo» and the City ofAlmeria, the building was finished and the Digitalservices were placed into service for the city.

• City Hall of Madrid: Normalization of the databases and development of their query and updatesystems for the Internet, for the GovernmentCouncillorship of Security and Community services.



• Seville City Hall: Back-up System for the City Hallsystems in Telvent’s Data Center. This node servesall the Councils and Public Companies of theAndalusian Board.

• City Hall of Granada: Four-year Project for thedevelopment of Information Systems of theElectronic Government of the City Hall, includingthe important TiSAC module for the Citizen HelpManagement.

• City Hall of Malaga: Computer Security System ofthe servers of this administration.

And in the different Autonomic Governments:

• In Andalusia the BRS and NISA centers from theAndalusian Board were put in operation. Thefinalization of the TiSAC module must behighlighted; it is a CRM system, specialized in thepublic segment which is in operation in severalCity Halls.

• In the Community of Madrid, there are a variety ofdifferent projects with Arpegio; of particularsignificance is their Purchasing System.

• In the Principality of Asturias several projects ofElectronic Government have been awarded.

• In the Catalonian Community, the CatSalut andICO customers were previously mentioned.

With regard to International activity, the followingprojects should be highlighted:

• In Mexico, the enlargement of the ElectronicDocumentation Exchange System for the PortCommunity of Veracruz was performed.

• In the Dominican Republic, several projects werecontracted relating to the development of theKnowledge Society, especially for the relationshipbetween the Central Administration and theCitizens.

In reference to the Outsourcing Area andTechnologies Infrastructures Management, during2005 we have noticed an increase in the number ofIT systems outsourced by the Public Administrationin order to assure both a 24x7 coverage of theservices that citizens receive as well as theinterconnection with other public entities. Also,organizations are becoming more dependent on ITfor satisfying their customer needs. This supportsTelvent’s strategy to dynamically adapt the IT services

offered to the particular requirements thatbusinesses and customers have.

In 2005 there has been a consolidation on theevolution of the profile and types of requests thatcustomer have, having gone from contracts wherethe most important issue was square-feet for hostingof equipment, to a global coverage of integratedservices where the service level agreement is theframework in which the relationship with thecustomer is based. We can see this evolution in manyof the projects we have executed, among whichinclude the following:

• Awarding by Radio TelevisiónEspañola of the High-AvailabilityDedicated Hosting for its Platformon Internet. The platform consistsof a three-level architecture formedby a first level of redundantInternet Access without a singlepoint of failure, a second front-endlevel accessible from a dedicatedfirewall and a final back-end levelwhere the different applications,databases and other services reside.

• Contract with Adeslas for theoutsourcing of its main Data and ContingencyCenters in Telvent’s infrastructures, increasing theservices already contracted. Under this four-yearcontract, Adeslas will house its technologicalplatform in Telvent’s two buildings in Madrid and willalso utilize the communications service tointerconnect both buildings.

• Contract with Dante to house its backbone node inTelvent. Dante provides the infrastructure foressential data communications in research projects inEurope (among others, EuropaNET, TEN-34, TEN-155and GÉANT networks).

• Contract to monitor the Nuclear Safety Council’ssystems utilizing its HP Openview centralizedmanagement platform through a Virtual PrivateNetwork.

• In addition, it is interesting to highlight the projectsdeveloped during 2005, including: Ya.Com, S21 Sec,Ibermatica, CapGemini, Opera, Arroba, AlcobendasTown Council, RediRis, Vueling, The Association ofSmall and Medium-Size Companies of Catalonia,CESCA, Agapea, and The National EnergyCommission.

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