Abengoa’s Audit Committee was set up by the Board of Directors of Abengoa, S.A. on December 2, 2002 pursuant to Article 44 of the company’s Bylaws, the aim being to incorporate the relevant provisions on Audit Committees as set forth in the Spanish Financial System Reform Act of 2002 (Ley 44/2002). Abengoa has likewise implemented a corporate governance system tailored at all times to applicable law and best practices.

In accordance with good governance practices, specialized committees are a must for companies wishing to ensure that their Boards of Directors function as efficiently as possible. These supporting committees help to distribute the workload and, in specific cases, can also ensure that proposals and resolutions start life in a highly specialized and independent body boasting specific professional knowledge and experience it can draw on to shape its decisions, thereby helping to guarantee that the resolutions adopted by the Board are objective and well founded.

On account of their independent nature, Audit Committees are able to oversee their company’s actions and ensure ethical and responsible conduct. This responsibility is unquestionably the main function at present and will continue to be so in the future.

The Audit Committee is essentially the driving force behind this notion of corporate responsibility, reflecting this approach each year by publishing its Audit Committee Report. Its competencies, composition and internal regulations are set forth in the Regulations of the Board of Directors and in its own Internal Regulations. In general terms, the committee has been heavily involved in the issues entrusted to it since its inception, as set forth in the annual Corporate Governance Report the company publishes yearly.

The Audit Committee Report for 2010 was approved at the meeting held by the Audit Committee on January 26, 2010, as submitted to the Board of Directors at its meeting of February 24, 2010. The report is enclosed as part of Abengoa’s Annual Report and is made available to company shareholders prior to the announcement of the General Shareholders’ Meeting.