1

FOR IMMEDIATE RELEASE

For further information, please contact Enersis Investor Relations:

Ricardo Alvial Susana Rey, srm@e.enersis.clChief Investments & Risks Officer Ximena Rivas, mxra@e.enersis.clE-mail: ram@e.enersis.cl Pablo Lanyi-Grunfeldt, pll@e.enersis.clPhone: 56 (2) 353-4682

ENERSIS ANNOUNCES CONSOLIDATED RESULTS FOR NINE MONTHSENDED SEPTEMBER 30th, 2002

HIGHLIGHTS FOR THE PERIOD ENDED SEPTEMBER 30th, 2002

Enersis Net income reached US$ 23 million, that reflects a reduction of 62.8% respect toSeptember 2001

Operating revenues decreased by US$ 403 million or 13%, basically related to the lowereconomic activity in Argentina. Isolating this effect, that would have increased 8.1%

Operating expenses decreased by US$ 250 million or 12% Selling and administrative expenses decreased by US$ 64 million, an important 23.4% Operating income decreased by US$ 89 million or 13% Net financial income improved by 11.2%, or US$ 45 million The Company under a conservative and prudent criterion, has made extraordinary

provision of US$ 103 million, net of Minority Interest, related to Argentina and Brazilsituation

Labor productivity increased by 6.2%, from 1,327 up to 1,409 clients per employee Clients increased in 446,000 new customers, equivalent to a company of 1.5 times the size

of Río Maipo The RAIIDAIE(*) ratio grew by US$ 2.4 million or 0.2%, which confirms that lower revenues

coming from Argentina were compensated by higher revenues from other subsidiaries aswell as by a better net financial result

On October 4th, 2002, the Company launched a Global Financial Plan, aimed atstrengthening the equity situation of Enersis. The Plan contemplates four basic areas:

• Capital Increase of up to US$ 1,500 million• Sale of assets for a maximum estimated value of US$ 1,000 million• Refinance of debt that some subsidiaries maintain with Enersis of US$500

million• Improvement of the Free Cash Flow by US$ 130 million, to be achieved in three

yearsWe expect to materialize the different stages of the Plan towards the end of the year 2003notwithstanding the fact that some of them could be completed during the first half of nextyear

(*) Net income before taxes, interest, depreciation, amortization, and extraordinary items (as defined by the local SEC).

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(Santiago, Chile, October 29th, 2002) Enersis (NYSE: ENI), today announced consolidated financial results forthe nine months ended September 30th, 2002. All figures are in constant Chilean Pesos and US$, and inaccordance with Chilean Generally Accepted Accounting Principles (GAAP) as seen in the standardized formrequired by Chilean authorities (FECU). Figures corresponding to September 30th, 2001 have been adjustedby the CPI variation between both periods, equal to 2.2%.

For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rateprevailing as of September 30th 2002, equal to US$ 1 = Ch$ 748.73.

The consolidation includes the following investment vehicles and companies,a) In Chile: Endesa Chile (NYSE: EOC) and its subsidiaries, Chilectra (OTC: CLRAY), Río Maipo, Synapsis,

CAM Ltd. and Inm. Manso de Velasco.b) Outside of Chile: Distrilima (Perú), Cerj and Investluz (Brazil), Edesur (Argentina), Luz de Bogotá

(Colombia).

In the next pages you will find a more detailed analysis of Financial Statements, explanation for most ofvariations, and comments on the principal items of the Income Statement and the Cash Flow Statementcompared with the information corresponding to September 30th, 2001.

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CONSOLIDATED INCOME STATEMENT(Under Chilean GAAP, million Ch$)

Table 1

Million Ch$ 9M 02 9M 01 Var 02-01 Chg %Revenues from Generation 686,030 754,836 (68,806) -9.1%Revenues from Distribution 1,400,562 1,630,439 (229,877) -14.1%Revenues from Other Businesses 136,072 131,550 4,522 3.4%Consolidation Adjustments (239,365) (231,562) (7,803) -3.4%

Operating Revenues 1,983,299 2,285,263 (301,964) -13.2%Op. Expenses from Generation (406,631) (481,932) 75,301 15.6%Op. Expenses from Distribution (1,093,899) (1,212,494) 118,595 9.8%Op.Expenses from Other Businesses (102,257) (94,727) (7,530) -7.9%Consolidation Adjustments 224,261 223,319 942 0.4%

Operating Expenses (1,378,526) (1,565,834) 187,308 12.0%Operating Margin 604,773 719,429 (114,656) -15.9%

SG&A from Generation (23,157) (24,828) 1,671 6.7%SG&A from Distribution (128,735) (170,752) 42,017 24.6%SG&A from Other Businesses (24,708) (28,966) 4,258 14.7%Consolidation Adjustments 20,005 20,111 (106) -0.5%

Selling and Administrative Expenses (156,595) (204,435) 47,840 23.4%

Operating Income 448,178 514,994 (66,816) -13.0%

Interest Income 62,764 48,885 13,879 28.4%Interest Expense (330,007) (349,991) 19,983 5.7%

Net Financial Income (Expenses) (267,243) (301,105) 33,862 11.2%Equity Gains from Related Companies 4,757 2,841 1,917 67.5%Equity Losses from Related Companies (4,701) (14,765) 10,064 68.2%

Net Income from Related Companies 57 (11,924) 11,981 100.5%Other Non Operating Income 314,736 184,545 130,191 70.5%Other Non Operating Expenses (198,970) (65,633) (133,337) -203.2%

Net other Non Operating Income (Expense) 115,766 118,912 (3,146) -2.6%Price Level Restatement 6,677 (478) 7,155 1496.3%Foreign Exchange Effect (17,238) (36,303) 19,066 52.5%

Net of Monetary Exposure (10,561) (36,782) 26,221 71.3%Positive Goodwill Amortization (62,419) (61,015) (1,405) -2.3%Non Operating Income (224,400) (291,913) 67,513 23.1%Net Income b. Taxes, Min Int and Neg Goodwill Amort. 223,778 223,081 697 0.3%Extraordinary Items (23,552) 0 (23,552) N/AIncome Tax (81,153) (94,684) 13,531 14.3%Minority Interest (142,042) (120,375) (21,667) -18.0%Negative Goodwill Amortization 39,936 37,587 2,349 6.3%

NET INCOME 16,966 45,608 (28,643) -62.8%R.A.I.I.D.A.I.E. 849,157 847,349 1,808 0.2%

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CONSOLIDATED INCOME STATEMENT(Under Chilean GAAP, thousand US$)

Table 1.2 748.73 1000

Th. US$ 9M 02 9M 01 Var 02-01 Chg %Revenues from Generation 916,258 1,008,155 (91,897) -9.1%Revenues from Distribution 1,870,584 2,177,606 (307,023) -14.1%Revenues from Other Businesses 181,737 175,698 6,040 3.4%Consolidation Adjustments (319,695) (309,273) (10,422) -3.4%

Operating Revenues 2,648,884 3,052,186 (403,302) -13.2%Op. Expenses from Generation (543,094) (643,666) 100,572 15.6%Op. Expenses from Distribution (1,461,006) (1,619,401) 158,395 9.8%Op.Expenses from Other Businesses (136,574) (126,517) (10,057) -7.9%Consolidation Adjustments 299,522 298,264 1,258 0.4%

Operating Expenses (1,841,152) (2,091,320) 250,168 12.0%Operating Margin 807,732 960,866 (153,134) -15.9%

SG&A from Generation (30,928) (33,160) 2,232 6.7%SG&A from Distribution (171,938) (228,056) 56,118 24.6%SG&A from Other Businesses (33,000) (38,687) 5,687 14.7%Consolidation Adjustments 26,719 26,860 (142) -0.5%

Selling and Administrative Expenses (209,147) (273,042) 63,895 23.4%

Operating Income 598,584 687,823 (89,239) -13.0%

Interest Income 83,828 65,291 18,536 28.4%Interest Expense (440,756) (467,446) 26,690 5.7%

Net Financial Income (Expenses) (356,929) (402,154) 45,226 11.2%Equity Gains from Related Companies 6,354 3,794 2,560 67.5%Equity Losses from Related Companies (6,279) (19,720) 13,441 68.2%

Net Income from Related Companies 75 (15,926) 16,001 100.5%Other Non Operating Income 420,360 246,478 173,882 70.5%Other Non Operating Expenses (265,743) (87,659) (178,084) -203.2%

Net other Non Operating Income (Expense) 154,617 158,819 (4,202) -2.6%Price Level Restatement 8,918 (639) 9,556 1496.3%Foreign Exchange Effect (23,022) (48,487) 25,464 52.5%

Net of Monetary Exposure (14,105) (49,125) 35,020 71.3%Positive Goodwill Amortization (83,367) (81,491) (1,876) -2.3%Non Operating Income (299,708) (389,878) 90,170 23.1%Net Inc b. Taxes, Min Int and Neg Goodwill Amort. 298,876 297,946 931 0.3%

Extraordinary Items (31,456) - (31,456) N/AIncome Tax (108,388) (126,459) 18,071 14.3%Minority Interest (189,711) (160,772) (28,939) -18.0%Negative Goodwill Amortization 53,338 50,200 3,138 6.3%

NET INCOME 22,660 60,914 (38,255) -62.8%R.A.I.I.D.A.I.E. 1,134,130 1,131,715 2,415 0.2%

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PROFORMA CONSOLIDATED INCOME STATEMENT(Under Chilean GAAP, million Ch$)

This proforma consolidated income statement, shows our Argentinean subsidiaries (Edesur, Costanera,Chocón) under the equity method.

Table 2

Million Ch$9M 02 Proforma 9M 01Proforma Var 02-01 Chg %

Operating Revenues 1,745,811 1,614,833 130,978 8.1%Operating Expenses (1,177,489) (1,093,053) (84,436) -7.7%Operating Margin 568,322 521,780 46,542 8.9%

Selling and Administrative Expenses (131,005) (146,053) 15,048 10.3%

Operating Income 437,317 375,727 61,590 16.4%

Net Financial Income (Expenses) (228,199) (276,124) 47,925 17.4%Net Income from Related Companies (5,722) 28,786 (34,508) -119.9%Net other Non Operating Income (Expense) 99,650 134,429 (34,779) -25.9%Net of Monetary Exposure (10,561) (36,781) 26,220 71.3%

Price Level Restatement 6,677 (478) 7,155 1496.9%Foreign Exchange Effect (17,238) (36,303) 19,065 52.5%

Positive Goodwill Amortization (62,419) (61,015) (1,404) -2.3%Non Operating Income (207,251) (210,705) 3,454 1.6%Net Income b. Taxes, Min Int and Neg Goodwill Amort 230,066 165,022 65,044 39.4%Extraordinary Items (23,552) 0 (23,552) N/AIncome Tax (86,058) (56,836) (29,222) -51.4%Minority Interest (143,426) (100,164) (43,262) -43.2%Negative Goodwill Amortization 39,936 37,586 2,350 6.3%

NET INCOME 16,966 45,608 (28,642) -62.8%

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PROFORMA CONSOLIDATED INCOME STATEMENT(Under Chilean GAAP, thousand US$)

This proforma consolidated income statement, shows our Argentinean subsidiaries (Edesur, Costanera,Chocón) under the equity method.

Table 2.1 748.73 1000

Th. US$9M 02 Proforma 9M 01Proforma Var 02-01 Chg %

Operating Revenues 2,331,696 2,156,763 174,934 8.1%Operating Expenses (1,572,648) (1,459,876) (112,772) -7.7%Operating Margin 759,048 696,887 62,161 8.9%

Selling and Administrative Expenses (174,970) (195,068) 20,098 10.3%

Operating Income 584,078 501,819 82,259 16.4%

Net Financial Income (Expenses) (304,781) (368,790) 64,008 17.4%Net Income from Related Companies (7,642) 38,446 (46,089) -119.9%Net other Non Operating Income (Expense) 133,092 179,543 (46,451) -25.9%Net of Monetary Exposure (14,105) (49,125) 35,019 71.3%

Price Level Restatement 8,918 (638) 9,556 1496.9%Foreign Exchange Effect (23,023) (48,486) 25,463 52.5%

Positive Goodwill Amortization (83,367) (81,491) (1,875) -2.3%Non Operating Income (276,803) (281,417) 4,613 1.6%Net Inc b. Taxes, Min Int and Neg Goodwill Amort 307,275 220,403 86,872 39.4%

Extraordinary Items (31,456) - (31,456) N/AIncome Tax (114,939) (75,910) (39,029) -51.4%Minority Interest (191,559) (133,779) (57,781) -43.2%Negative Goodwill Amortization 53,338 50,200 3,139 6.3%

NET INCOME 22,660 60,914 (38,254) -62.8%

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CONSOLIDATED INCOME STATEMENT ANALYSIS(As seen in the FECU)

NET INCOME

As of September 30th, 2002, the Company achieved a Net income of US$ 23 million that represents a fall of63% from the US$ 61 million registered during the same period of last year.

OPERATING INCOME

Operating income for the period ended September 30th, 2002 amounted to US$ 599 million, a decrease ofUS$ 89 million or 13% with respect to the same period of 2001. This fall is mainly explained by the economicinstability in Argentina. It is important to point out the improved Operating Income achieved during this period,especially by the subsidiaries in Chile and Brazil. This is clearly illustrated when we isolate the effect of thesubsidiaries in Argentina, in which case the Operating Income would have reflected an increase of 16.4%, theequivalent to a raise of US$ 82 million in Operating Income, as shown in the table Pro-Forma IncomeStatement.

In the Generation Business, the Operating Income of Endesa Chile rose by 3.5% to US$ 352 million as ofSeptember 2002. This increase in sales was basically due to an improved performance by the operations inChile, Colombia and Peru.

In Chile, Operating Income for nine months of 2002 amounted to US$ 165 million, an increase of 36.4%,basically due to the rise in the generation of hydroelectricity as a result of improved levels of water in thereservoirs and to the abundant rainfall as well as to the increase in the average sales prices, resulting from theCompany’s marketing policies that enabled it to obtain the best prices on the unregulated clients and spotmarkets. Furthermore, the lower level of thermal electricity generation, produced a savings of US$ 23 millionin fuel and gas transportation costs and the greater availability of water have allowed for a reduction of US$ 11million in the cost of purchasing energy.

In Colombia, Operating Income at September 2002 rose by 5.7% to US$ 82 million, due to increased physicalsales of energy and to higher average sales prices of energy on the spot market.

In Peru, the Operating Income increased by 2.9% reaching US$ 72 million, mainly as a result of higheraverage sales prices in the market that more than compensated the reduction in physical sales of energy onthat market.

On the other hand, Endesa Chile shows a decrease in the Operating Income of its subsidiaries in Argentinaand Brazil: In Argentina, Operating Income amounted to US$ 11 million, a reduction of US$ 35 millionrespect to September 2001. This drop is due to a fall by 45.5% in physical sales of energy and to thedeterioration of average sales prices of energy from El Chocón as a result of the devaluation of the ArgentinePeso. In addition, low prices of energy in the south of Brazil, resulting from the large amount of water in thatarea, have meant that demand for exports from Argentina fell to only 4% during the period January-September2002. Nevertheless, the Operating Income of Central Costanera improved by US$ 6 million in comparison withthe same period of the year before, due to the sales of power that have partially compensated for the fall in theCompany’ sales of energy.

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In Brazil, the Operating Income of Cachoeira Dourada, decreased by 12.1%, reaching US$ 22 million, mainlyas a result of a lower level of generation and greater purchases of energy, in order to comply with contractualcommitments whilst the levels in the reservoirs are recovering, after a prolonged drought in the southeast ofBrazil.

The Distribution Business shows an improved Operating Income during the period ended in September2002, in its subsidiaries in Chile, Brazil and Colombia.

In Chile, the subsidiaries Chilectra and Río Maipo show increases in their Operating Income. Chilectraregisters an increase of US$ 10 million, or 12.9%, due principally to larger physical sales of energy and to areduction in SG&A, as a consequence of lower Operating and Maintenance Costs. On the other hand, RíoMaipo’s increased by US$ 0.5 million in Operating Income is basically the result of a reduction in SG&A.

In Brazil, the Operating Income of our subsidiaries Cerj and Coelce, have improved by US$ 10 million andUS$ 15 million, respectively. This variation is related to a more normal consumption level, after the end of therationing imposed by the Government.

In Colombia, the subsidiary Codensa, presented an increase of US$ 1 million, explained principally by the risein physical sales of energy and a reduction in energy losses that went from 11.4% in September 2001 to 10.2%in September 2002.

On the other hand, the subsidiaries Edelnor and Edesur in Peru and Argentina, respectively, show reductionsin their Operating Income.

Edelnor showed a reduction of US$ 2 million in its Operating Income basically due to an increase in SG&A dueto the rise in the costs of depreciation.

The situation with Edesur is totally different to the previous year, as it shows a fall in its Operating Income ofUS$ 128 million, due to the current economic instability in the country that has caused the Company’s lowerincome from sales, due to a freeze on tariffs, a reduction in physical sales as a result of a lower demand ofenergy, losses arising from the devaluation of the Argentine Peso and to an increase of energy losses due totheft. This significant negative impact on the Operating Income is what has led to a net reduction in theconsolidated Operating Income of Enersis, in comparison with the same period of the previous year, despitethe important improvements shown by the other subsidiaries in the Group.

Consolidated Physical Sales as of September 30th, 2002 amounted to 36,440 GWh, a decrease of 144 GWhor 0.4% from the sales of 36,584 GWh as at the same date of the previous year.

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Operating income and expenses, together with administrative and selling expenses, of subsidiaries of EnersisGroup, for the nine months ended in September 2002 and 2001, are shown below:

OPERATING INCOME, BREAKDOWN BY SUBSIDIARY(Under Chilean GAAP, million Ch$)

Table 3

Operating results main subsidaries (million Ch$) Operating Revenues Operating Expenses SG & A Operating

IncomeOperating Revenues

Operating Expenses SG& A Operating Income

Endesa S.A. 715,453 (427,409) (24,629) 263,415 781,883 (501,056) (26,375) 254,452Chilectra S.A. 294,697 (203,623) (22,700) 68,374 267,477 (183,461) (23,430) 60,586Río Maipo S.A. 41,773 (31,241) (2,685) 7,847 38,407 (27,954) (2,948) 7,505Edesur S.A. 161,135 (138,482) (24,369) (1,716) 485,402 (333,901) (57,029) 94,472Edelnor S.A. 157,638 (116,279) (14,885) 26,474 150,239 (107,780) (14,399) 28,060Cerj 291,294 (254,060) (11,636) 25,598 266,508 (223,896) (24,670) 17,942Coelce 190,477 (131,778) (32,028) 26,671 162,285 (117,245) (29,653) 15,387Codensa S.A. 263,548 (218,436) (20,424) 24,688 253,594 (211,340) (18,470) 23,784CAM Ltda. 63,435 (50,751) (4,986) 7,698 62,724 (48,158) (6,130) 8,436Inmobiliaria Manso de Velasco Ltda 4,196 (2,373) (1,097) 726 4,258 (1,877) (1,225) 1,156Synapsis Soluciones y Servicios IT Ltda. 35,854 (27,567) (4,498) 3,789 34,360 (24,945) (5,335) 4,080Enersis Holding and other investment vehicles 3,164 (788) (12,664) (10,288) 9,689 (7,540) (14,882) (12,733)Consolidation Adjustments (239,365) 224,261 20,006 4,902 (231,562) 223,319 20,111 11,868Total Consolidation 1,983,299 (1,378,526) (156,595) 448,178 2,285,264 (1,565,834) (204,435) 514,995

Sep-02 Sep-01

OPERATING INCOME, BREAKDOWN BY SUBSIDIARY(Under Chilean GAAP, thousand US$)

Table 3.1748.73

Operating results main subsidaries (thousand US$) Operating Revenues Operating Expenses SG & A Operating

IncomeOperating Revenues

Operating Expenses SG& A Operating Income

Endesa S.A. 955,555 (570,845) (32,894) 351,816 1,044,279 (669,208) (35,226) 339,845Chilectra S.A. 393,596 (271,958) (30,318) 91,320 357,241 (245,030) (31,293) 80,918Río Maipo S.A. 55,792 (41,725) (3,586) 10,480 51,296 (37,335) (3,937) 10,024Edesur S.A. 215,211 (184,956) (32,547) (2,292) 648,300 (445,956) (76,168) 126,176Edelnor S.A. 210,541 (155,302) (19,880) 35,359 200,658 (143,950) (19,231) 37,477Cerj 389,051 (339,321) (15,541) 34,189 355,947 (299,034) (32,949) 23,963Coelce 254,400 (176,002) (42,776) 35,622 216,747 (156,592) (39,604) 20,551Codensa S.A. 351,993 (291,742) (27,278) 32,973 338,699 (282,265) (24,668) 31,766CAM Ltda. 84,723 (67,783) (6,659) 10,281 83,774 (64,320) (8,187) 11,267Inmobiliaria Manso de Velasco S.A. 5,604 (3,169) (1,465) 970 5,687 (2,507) (1,636) 1,544Synapsis soluciones y servicios IT Ltda. 47,886 (36,818) (6,008) 5,061 45,891 (33,316) (7,125) 5,449Enersis Holding and other investment vehicles 4,226 (1,052) (16,914) (13,741) 12,941 (10,070) (19,876) (17,006)Consolidation Adjustments (319,695) 299,522 26,720 6,547 (309,273) 298,264 26,860 15,851Total Consolidation 2,648,884 (1,841,152) (209,147) 598,584 3,052,187 (2,091,320) (273,042) 687,825

Sep-02 Sep-01

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NON–OPERATING INCOME

Non-Operating Income increased in 23% respect to the same period of previous year, from a loss of US$ 390million, to a loss of US$ 300 million. This is basically explained by the following:

Net Financial Result decreased by US$ 45 million or 11%, from US$ 402 million as of September 30th, 2001to US$ 357 million as of September 30th, 2002. This variation is the result of lower interest rates on theinternational markets respect to the previous period.

Investment in Related Companies registered a net profit as of September 2002 of US$ 0.1 million, a positivevariation of US$ 16 million when compared to the net loss of US$ 15.9 million obtained as of the same date ofyear 2001. This is principally due to the effects of the exchange rates in the results for both periods of theEndesa Chile’s related companies.

The amortization on positive goodwill for the period ended on September 30th, 2002 amounted to US$ 83million, an increase of US$ 2 million with respect to the US$ 81 million as of September 30th, 2001. Theincrease in the amortization is the result of the rise in the positive goodwill produced by the purchase of sharesin Chilectra and Rio Maipo and by the methodology of controlling in US Dollars the positive goodwill producedby the investments in corporations in countries considered to be unstable in accordance to Technical BulletinN° 64.

Net Other Non-Operating Income registered a reduction of US$ 4 million or 2.6% mainly due to:

• An increase of US$ 191 million derived from the adjustment on converting over to Chilean AccountingRules on applying the norms contained in Technical Bulletin N° 64, particularly respect to subsidiariesin Brazil and Argentina. This was principally due to the devaluation of both the Brazilian Real and theArgentine Peso against the US Dollar as of September 30th, 2002 respect to the same period of theprevious year.

• Partially compensated by an increase of US$ 104 million (US$ 103 million net of minority interests) inprovisions to cover the potential effects of the unstable situation in Argentina and Brazil.

• A reduction of US$ 32 million in the profit from forward contracts, which fell from a net profit of US$ 43million as of September 2001, to a net profit of US$ 11 million this year.

• An increase of US$ 30 million in provisions for contingencies and lawsuits.• Net losses of US$ 4 million resulting from the recalculations of energy in the SING system.• An increase of US$ 15 million in extraordinary expenses on post-retirement benefits of the staff,

mainly in respect to pension schemes decreed as obligatory by law for all Brazilian companies.

Price Level Restatement and Exchange Differences show a reduction of US$ 35 million in the loss withrespect to the same period of last year. This was caused principally by the effects of the nominal devaluationof 14.35% of the Ch$ against the US$, compared with a devaluation of 21.16% as at the same date last year.These effect were compensated to a large extent by the forward contracts maintained by the Company.

Income Tax and Deferred Taxes present a reduction of US$ 18 million in the loss with respect to the sameperiod of the previous year. This is explained mainly by a fall of US$ 29 million in Income Tax, mainly due toeffects of the subsidiaries in Argentina, compensated by an increase of US$ 11 million in Deferred Taxes.

Extraordinary Items as of September 30th, 2002 show a loss of US$ 31 million as a result of a new taximposed by the Colombian Government (Tax to contribute to security’s purposes) upon all companiesestablished in that country.

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INTEREST RATE RISKS

On a consolidated basis, as December 31st, 2001, 42% of the total debt was expressed in variable terms(mainly Libor USD and Chilean TAB) while 58% was at fixed rates and secure.

At the close of September 2002, the debt refinanced at variable rates represented 31% of the total debt while69% was at fixed rates.

The reduction in the percentage of debt at variable rates during this year is explained basically by therefinancing of obligations (previously at variable terms) into fixed rates, and by hedge operations of Libor US$rate for US$ 1,000 million, of which US$ 700 million were done by Enersis and US$ 300 million by EndesaChile. The Company manages its interest rate risks by concentrating its debt structure on the long term with asuitable combination of debt at fixed rates and at variable rates.

EXCHANGE RISK

The Company’s exposure to an exchange risk is derived from the assets and liabilities denominated in foreigncurrency, mainly in US$.

On a consolidated basis, as of December 2001, Enersis had 72% of its total debt expressed in US$. With theUS$/Ch$ forward position, the weight of this debt in US$ was reduced to 67%.

As of September 30th, 2002, 71% of the debt was expressed in US$. Considering the US$/Ch$ hedging policymentioned below, the percentage of the debt expressed in US$ is reduced to 65%.

The reason behind the largest part of our debt being denominated in US$ is the fact that an importantproportion of our revenues is directly or indirectly related to US$. Thus, the tariffs of the majority of thecountries in which we have operations are tied to a large extent to the evolution of the US$, particularly inChile and Peru. In countries where the indexation to the US$ is lower, the companies borrow a greaterproportion of their loans in local currency.

As mentioned before, despite the hedging, we are exposed to the fluctuations between the Ch$ and the US$rates of exchange. These are managed through the use of financial derivative instruments, basically US$/Ch$forward contracts, through which the exchange risk is hedged.

The exchange risk exposure is currently handled on a consolidated basis, taking into consideration the portionof this risk that our Chilean subsidiaries have not covered. The Company’s policy is to hedge between 70%and 85% of the booked exposure to exchange risks.

On a consolidated basis, as of September 30th, 2002, the Company had US$/Ch$ forward contracts for US$524 million, while as of December 31st, 2001, the total was US$ 506 million. This increase is due to a greaterexposure to the variations in the US$ exchange rate on our books.

Although the actual exchange risk to which we are exposed, depends on the fluctuation of the exchange ratesat which the Company’s assets and liabilities are maintained, for accounting purposes, our results are alsoaffected by rules of Technical Bulletin N° 64. In accordance to this Chilean Accounting Regulations, debt inforeign currency utilized to finance investments in countries with an “unstable currency” are matched to theircorresponding investment.

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BUSINESS INFORMATIONMain Operating Figures

Table 4 - DISTRIBUTION BUSINESS

Customers (Th) Customers (Th)9M 02 9M 01

Chilectra 1,310 1,284 26 2.02%Río Maipo 299 293 6 2.05%Cerj 1,768 1,655 113 6.83%Coelce 2,136 1,884 252 13.38%Codensa 1,893 1,845 48 2.60%Edelnor 872 854 18 2.11%Edesur 2,084 2,101 (17) -0.81%Total 10,362 9,916 446 4.50%

GWh sold GWh sold 9M 02 9M 01

Chilectra 7,401 7,153 248 3.47%Río Maipo 955 929 26 2.80%Cerj 5,263 5,390 (127) -2.36%Coelce 4,036 4,083 (47) -1.15%Codensa 6,726 6,438 288 4.47%Edelnor 2,894 2,760 134 4.86%Edesur 9,165 9,831 (666) -6.77%Total 36,440 36,584 (144) -0.39%

Clients/Employee Clients/Employee9M 02 9M 01

Chilectra 1,812 1,746 66 3.78%Río Maipo 3,932 3,488 444 12.73%Cerj 1,215 1,195 20 1.67%Coelce 1,517 1,250 267 21.36%Codensa 2,278 2,126 152 7.15%Edelnor 1,439 1,393 46 3.30%Edesur 924 922 2 0.22%Total 1,409 1,327 82 6.18%

Dif 01-02 Var 01-02Company

Company Dif 01-02 Var 01-02

Company Dif 01-02 Var 01-02

13

BUSINESS INFORMATIONMain Operating Figures

Cont. Table 4 - DISTRIBUTION BUSINESS

Energy Losses % (*) Energy Losses % (*)

9M 02 9M 01

Chilectra(%) 5.7% 5.3% 0.004 Chilectra (GWH) 592 526 66 Río Maipo(%) 6.0% 6.5% (0.005) Río Maipo (GWH) 81 85 (4) Cerj (%) 22.8% 22.1% 0.007 Cerj (GWH) 1,988 2,070 (82) Coelce (%) 12.9% 12.9% - Coelce (GWH) 790 843 (53) Codensa (%) 10.2% 11.4% (0.012) Codensa (GWH) 1,017 1,114 (97) Edelnor (%) 8.6% 9.1% (0.005) Edelnor (GWH) 359 366 (7) Edesur (%) 11.2% 9.8% 0.014 Edesur (GWH) 1,542 1,402 140 Weighted Average Losses 12.0% 11.9% 0.001

(*) Energy Losses calculated Trailing Twelve Month (TTM)

Company Dif 01-02

Table 5 - GENERATION BUSINESS

9M 02 9M 01Chile SIC & SING 13,372 13,933 -4.0% 44.7%Argentina SIN 5,854 10,734 -45.5% 10.8%Perú SICN 3,021 3,195 -5.4% 20.7%Colombia SIN 11,277 10,801 4.4% 22.4%Brazil SICN 2,769 2,536 9.2% 1.2%Total 36,293 41,199 -11.9%

Country Market Share 9M 02Var 02-01Energy Sales (GWh)Market

14

BUSINESS INFORMATION ANALYSIS

Finally, here is a brief analysis of the Results of Enersis’ distribution subsidiaries:

Chilectra

Chilectra recorded a Net Income of US$ 50 million as of September 30, 2002, US$ 44 million lower than thesame period of 2001, mainly related to:

• Lower Non-Operating Income of US$ 71 million, primarily due to higher net other non-operating expensesof US$ 52 million, related to provisions made in connection with Chilectra’s Brazilian and Argentineansubsidiaries, lower price level restatement of US$ 25 million, lower goodwill amortization of US$ 6 million,and higher interest expenses of US$ 6 million. This figure was partially compensated by higher profitsfrom related companies of US$ 19 million, attributable to higher profits from Cerj (of US$ 39 million),compensated by lower profits from Edesur (of US$ 20 million).

• Higher Operating Income of US$ 10 million, mainly due to higher energy sales of US$ 36 million,compensated by higher energy purchases of US$ 28 million.

• Lower Tax payment of US$ 11 million, and higher minority shareholders interest of US$ 6 million.

Río Maipo

The company registered a Net Income of US$ 10 million for the first nine month ended September 30, 2002,which represents an increase of US$ 0.6 million compared to the same period of 2001. This is mainlyexplained by:

• Higher Operating Income of US$ 0.5 million, basically due to higher energy sales of US$ 4.6 million,compensated by higher energy purchases of US$ 3.9 million.

• Higher Non-Operating Income of US$ 0.2 million, primarily due to lower interest expenses of US$ 0.3million.

Cerj

Cerj recorded a Net Income of US$ 156 million as of September 30, 2002, US$ 65 million higher thanSeptember 2001. This is primarily due to:

• Higher Non-Operating Income of US$ 58 million, mainly due lower net financial income of US$ 36 million,higher net other non-operating revenues of US$ 14 million, mainly due to higher positive conversion effectrecorded as a result of the Brazilian R$ depreciation and due to Technical Bulletin N°64 of ChileanAccounting Principles, as well as because of lower profits from Investluz of US$ 8 million.

• Higher Operating Income of US$ 10 million, primarily explained by higher energy sales of US$ 38 million,and lower SG&A expenses of US$ 17 million. The above was compensated by higher operating andmaintenance cost and third parties services of US$ 17 million, higher depreciation and amortizationexpenses of US$ 11 million. Also, because of higher energy purchases of US$ 11 million, and lower otheroperating revenues related to electric grid rentals and tolls of US$ 5 million.

• Lower Tax savings for US$ 3 million.

15

Coelce

Coelce registered a Net Income of US$ 48 million as of September 30th, 2002, US$ 38 million higher thanSeptember 2001. This result, mainly due to:

• Higher Non-Operating Income of US$ 28 million, mainly explained by higher positive conversion effect ofUS$ 35 million recorded as a result of the Brazilian R$ depreciation and due to Technical Bulletin N°64 ofChilean Accounting Principles, compensated by higher net financial loss of US$ 6 million.

• Higher Operating Income of US$ 15 million, mainly due to higher energy sales of US$ 39 million,compensated by higher energy purchases of US$ 9 million, higher operating and maintenance cost andthird parties services of US$ 7 million. Also by higher depreciation and amortization expenses of US$ 3million, higher SG&A expenses of US$ 3 million, and US$ 2 million of lower other operating revenues fromelectric grid rentals and tolls.

• Higher Tax payment of US$ 5 million.

Codensa

Codensa registered a Net Loss of US$ 4 million for the first nine months ended September 30th, 2002. Thisfigure, represents a US$ 28 million reduction compare to September 2001. This is primarily attributable to:

• Lower Non-Operating Income of US$ 19 million, mainly due to higher negative conversion effect registeredas a result of the Colombian Peso depreciation and also due to Technical Bulletin N°64 of ChileanAccounting Principles of US$ 20 million.

• Higher Operating Income of US$ 1 million, primarily explained by higher energy sales of US$ 9 million,higher other operating revenues due to electric grid rentals and tolls of US$ 5 million. This positivevariation were compensated by higher depreciation and amortization expenses of US$ 7 million, andhigher costs associated to third parties services and operating and maintenance cost of US$ 5 million.

• Higher Tax payment of US$ 10 million.

Edelnor

The Net Income registered by Edelnor was US$ 27 million, US$ 8 million higher compared to the previousyear. This result can be mainly explained by:

• Higher Non-Operating Income of US$ 15 million, mainly due to higher positive conversion effect of US$ 15million registered as a result of the Peruvian Peso depreciation and due to Technical Bulletin N°64 ofChilean Accounting Principles.

• Lower Operating Income of US$ 2 million, mainly explained by higher energy purchases of US$ 7 million,higher costs associated to third parties services and operating and maintenance cost of US$ 4 million.And also due to higher depreciation and amortization expenses of US$ 1 million, compensated by higherenergy sales of US$ 11 million.

• Higher Tax payment of US$ 5 million.

Edesur

Edesur registered a Net Income of US$ 11 million as of September 30, 2002, this is US$ 60 million lower thanSeptember 2001. Detail as follows:

• Lower Operating Income of US$ 128 million, mainly due to lower revenues on Energy Sales of US$ 397million, lower Other Operating Income of US$ 36 million, which was compensated by lower expenses in

16

Energy Purchases of US$ 194 million. Also due to lower Other Operating Costs of US$ 67 millionattributable to third parties services and operating and maintenance cost, and lower SG&A expenses ofUS$ 44 million.

• Higher Non-Operating Income of US$ 15 million, mainly explained by higher positive conversion effectregistered as a result of the Argentinean Peso depreciation and due to Technical Bulletin N°64 of ChileanAccounting Principles of US$ 30 million, compensated by higher net financial losses of US$ 16 million.

• Lower Tax payment of US$ 53 million.

17

CONSOLIDATED BALANCE SHEET(Under Chilean GAAP, million Ch$)

Table 6

Million Ch$9M 02 9M 01

CURRENT ASSETSCash 45,587 31,189Time Deposits 191,966 127,929Marketable Securities 94 8,776Accounts Receivable, net 418,043 495,922Notes receivable 5,880 3,385Other accounts receivable 62,033 83,468Amounts due from related companies 200,569 25,973Inventories, net 70,339 88,402Income taxes to be recovered 58,549 66,275Prepaid expenses 8,033 8,412Deferred income taxes 39,576 28,768Other current assets 294,758 164,929Net of Long Term Leasing Contracts - -Net of Assets for leasing - -

Total currrent assets 1,395,427 1,133,429

PROPERTY, PLANT AND EQUIPMENTProperty 168,430 152,258Buildings and Infraestructure 11,838,764 11,100,858Plant and equipment 2,040,648 1,917,802Other assets 585,744 578,831Technical re-appraisal 747,131 714,512

Sub - Total 15,380,717 14,464,261

Accumulated depreciation (5,115,075) (4,503,024)

Total property, plant and equipment 10,265,642 9,961,237

OTHER ASSETS

Investments in related companies 199,654 169,045Investments in other companies 165,783 157,230Positive Goodwill 1,299,013 1,351,102Negative goodwill (176,761) (203,472) Long-term receivables 115,083 73,341Amounts due from related companies 1,277 179,642Intangibles 80,068 72,184Accumulated amortization (32,454) (23,421) Deferred income taxes - -Others 215,988 122,362Net of Long Term Leasing Contracts - -

Total other assets 1,867,650 1,898,014

TOTAL ASSETS 13,528,719 12,992,680

18

CONSOLIDATED BALANCE SHEET(Under Chilean GAAP, thousand US$)

Table 6.1 1000 748.73

Th. US$ 9M 02 9M 01

CURRENT ASSETSCash 60,886 41,656Time Deposits 256,389 170,861Marketable Securities 126 11,721Accounts Receivable, net 558,336 662,351Notes receivable 7,853 4,521Other accounts receivable 82,851 111,480Amounts due from related companies 267,879 34,690Inventories, net 93,944 118,070Income taxes to be recovered 78,197 88,517Prepaid expenses 10,729 11,236Deferred income taxes 52,858 38,422Other current assets 393,677 220,279Net of Long Term Leasing Contracts 0 0Net of Assets for leasing 0 0

Total currrent assets 1,863,726 1,513,802

PROPERTY, PLANT AND EQUIPMENTProperty 224,954 203,356Buildings and Infraestructure 15,811,793 14,826,250Plant and equipment 2,725,479 2,561,406Other assets 782,317 773,083Technical re-appraisal 997,864 954,298

Sub - Total 20,542,407 19,318,394

Accumulated depreciation (6,831,668) (6,014,216)

Total property, plant and equipment 13,710,740 13,304,177

OTHER ASSETS

Investments in related companies 266,656 225,776Investments in other companies 221,418 209,995Positive Goodwill 1,734,955 1,804,525Negative goodwill (236,081) (271,756) Long-term receivables 153,704 97,954Amounts due from related companies 1,705 239,929Intangibles 106,938 96,409Accumulated amortization (43,345) (31,281) Deferred income taxes - -Others 288,473 163,427Net of Long Term Leasing Contracts - -

Total other assets 2,494,423 2,534,978

TOTAL ASSETS 18,068,889 17,352,957

19

CONSOLIDATED BALANCE SHEET(Under Chilean GAAP, million Ch$)

Table 7

9M 02 9M 01

LIABILITIES AND SHAREHOLDER'S EQUITYCURRENT LIABILITIES

Due to banks and financial institutions(Short Term) 441,348 270,485Due to banks and financial institutions(Short term portion of Long Term) 711,303 305,487Commercial paper equivalent 31,790 27,768Bonds payable(Short Term) 501,981 102,454Long-term liabilities maturing before one year 42,741 27,057Dividends payable 20,109 1,839Accounts payable 214,207 234,801Notes payable 2,966 17,787Miscellaneous payables 74,030 37,210Accounts payable to related companies 8,934 26,807Provisions 74,335 75,435Withholdings 52,638 73,648Income Tax 31,937 59,785Anticipated income 10,949 10,106Deferred Taxes - -Other current liabilities 115,076 151,068

Total current liabilities 2,334,345 1,421,738

LONG-TERM LIABILITIES

Due to banks and financial institutions 1,751,524 2,257,507Bonds payable 2,170,087 2,344,232Notes payable 211,029 221,463Miscellaneous payables 22,613 33,230Amounts payable to related companies 990,504 982,554Provisions 270,761 146,765Deferred taxes 80,174 43,340Other long-term liabilities 44,454 62,738

Total Long-term liabilities 5,541,146 6,091,828

Minority interest 4,407,755 4,265,670

SHAREHOLDERS´ EQUITYPaid-in capital, no par value 729,328 722,962Reserve to Equity Revaluation 9,481 15,905Additional paid-in capital-share premium 32,819 32,822Other reserves 60,918 40,134

Total Capital and Reserves 832,547 811,823

RETAINED EARNINGSFuture Dividends Reserve - -Retained Earnings 396,159 354,729Retained Losses - -Net Income 16,966 45,609 Interim dividends - -Development subsidaries deficits (199) 1,283

Total Retained Earnings 412,926 401,621

Total Shareholder´s Equity 1,245,473 1,213,444

TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY 13,528,719 12,992,680

20

CONSOLIDATED BALANCE SHEET(Under Chilean GAAP, thousand US$)

Table 7.1

9M 02 9M 01

LIABILITIES AND SHAREHOLDER'S EQUITYCURRENT LIABILITIES

Due to banks and financial institutions(Short Term) 589,462 361,259Due to banks and financial institutions(Short term portion of Lon 950,012 408,007Commercial paper equivalent 42,459 37,087Bonds payable(Short Term) 670,443 136,837Long-term liabilities maturing before one year 57,085 36,138Dividends payable 26,857 2,456Accounts payable 286,094 313,599Notes payable 3,961 23,756Miscellaneous payables 98,875 49,698Accounts payable to related companies 11,932 35,803Provisions 99,282 100,751Withholdings 70,304 98,364Income Tax 42,654 79,849Anticipated income 14,624 13,498Deferred Taxes - -Other current liabilities 153,695 201,765

Total current liabilities 3,117,739 1,898,866

LONG-TERM LIABILITIES

Due to banks and financial institutions 2,339,326 3,015,114Bonds payable 2,898,357 3,130,944Notes payable 281,849 295,785Miscellaneous payables 30,202 44,381Amounts payable to related companies 1,322,912 1,312,295Provisions 361,627 196,019Deferred taxes 107,080 57,884Other long-term liabilities 59,373 83,792

Total Long-term liabilities 7,400,726 8,136,215

Minority interest 5,886,976 5,697,207

SHAREHOLDERS´ EQUITYPaid-in capital, no par value 974,087 965,584Reserve to Equity Revaluation 12,663 21,243Additional paid-in capital-share premium 43,833 43,837Other reserves 81,361 53,603

Total Capital and Reserves 1,111,945 1,084,266

RETAINED EARNINGSFuture Dividends Reserve - -Retained earnings 529,108 473,775Retained Losses - -Net Income 22,660 60,915 Interim dividends - -Development subsidaries deficits (266) 1,714

Total Retained Earnings 551,502 536,403Total Shareholder´s Equity 1,663,447 1,620,670

TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY 18,068,889 17,352,957

21

EVOLUTION OF KEY FINANCIAL RATIOS

Table 8

Indicator Unit Sep-02 Sep-01 Sept 02-01 %Var 02-01Liquidity Times 0.60 0.80 (0.20) (25.0%)Acid ratio test * Times 0.59 0.79 (0.20) (25.3%)Working capital million Ch$ (938,918) (288,308) (650,610) (225.7%)Working capital thousands US$ (1,254,014) (385,063) (868,951) (225.7%)Leverage ** Times 1.39 1.37 0.02 1.5%Short-term debt % 0.30 0.19 0.11 56.6%Long-term debt % 0.70 0.81 (0.11) (13.2%)Interest Coverage*** Times 2.57 2.42 0.15 6.3%EBITDA**** million Ch$ 796,898 847,168 (50,270) (5.9%)EBITDA million US$ 1,064 1,131 (67) (5.9%)ROE % 1.36% 3.76% -2.4% (63.8%)ROA % 0.1% 0.4% -0.2% (64.3%)

* Current assets net of inventories and pre-paid expenses** Using the ratio = Total debt / (equity + minority interest)

Positive Goodwill)/Interest expenses****EBITDA: Operating Income+Depreciation

***EBITDAEI/Interest expenses=(Earnings before taxes+Fin exp+Net non operating income+depreciation+

22

CONSOLIDATED DEBT MATURITY SCHEDULE (Debt with third parties)

Table 9688.05

TOTALCh$ million 4Q02 2003 2004 2005 2006 BalanceChile 184,557 1,107,124 2,263,258 95,664 488,084 1,427,005 5,565,692

Enersis 3,892 504,141 1,785,219 9,018 234,944 253,450 2,790,664Chilectra 64,395 0 13,034 0 0 0 77,428

Río Maipo 673 0 16,455 0 0 0 17,128Otras 4,497 0 20,568 0 0 1 25,066

Endesa 111,101 602,983 427,982 86,646 253,140 1,173,554 2,655,405Argentina 68,086 201,482 29,257 17,982 17,982 87,675 422,464

Edesur 47,949 98,011 9,851 0 0 0 155,811Costanera 20,136 103,471 19,406 17,982 17,982 87,675 266,653

Perú 33,793 68,330 47,154 26,744 59,446 48,740 284,207Edelnor 7,952 30,101 13,238 0 36,984 3,816 92,091Edegel 25,842 38,229 33,917 26,744 22,462 44,924 192,117

Brasil 65,781 79,380 17,687 25,857 15,223 51,469 255,397Coelce 37,955 29,543 10,657 18,732 8,502 48,936 154,325

Cerj 27,827 48,890 7,029 7,126 6,721 2,533 100,125Cachoeira 0 946 0 0 0 0 946

Colombia 41,114 47,354 3,375 0 31,638 82,216 205,696Codensa 20,493 36,764 0 0 0 0 57,257Emgesa 20,621 10,590 3,375 0 31,638 82,216 148,439

TOTAL 393,331 1,503,669 2,360,731 166,248 612,373 1,697,104 6,733,457

Table 9.1

TOTALUS$ Th 4Q02 2003 2004 2005 2006 BalanceChile 246,494 1,478,669 3,022,796 127,769 651,882 1,905,900 7,433,510

Enersis 5,198 673,328 2,384,330 12,045 313,790 338,506 3,727,197Chilectra 86,005 0 17,408 0 0 0 103,413

Río Maipo 899 0 21,977 0 0 0 22,876Otras 6,006 0 27,471 0 0 1 33,478

Endesa 148,386 805,341 571,610 115,724 338,092 1,567,393 3,546,546Argentina 90,935 269,098 39,076 24,017 24,017 117,098 564,241

Edesur 64,041 130,903 13,157 0 0 0 208,101Costanera 26,894 138,195 25,919 24,017 24,017 117,098 356,140

Perú 45,134 91,261 62,979 35,719 79,396 65,097 379,586Edelnor 10,620 40,203 17,680 0 49,396 5,097 122,996Edegel 34,514 51,058 45,299 35,719 30,000 60,000 256,590

Brasil 87,857 106,019 23,622 34,535 20,332 68,742 341,107Coelce 50,692 39,458 14,234 25,018 11,355 65,359 206,116

Cerj 37,165 65,297 9,388 9,517 8,977 3,383 133,727Cachoeira 0 1,264 0 0 0 0 1,264

Colombia 54,911 63,246 4,508 0 42,255 109,807 274,727Codensa 27,370 49,102 0 0 0 0 76,472Emgesa 27,541 14,144 4,508 0 42,255 109,807 198,255

TOTAL 525,331 2,008,293 3,152,981 222,040 817,882 2,266,644 8,993,171

Debt Maturity

Debt Maturity

23

CONSOLIDATED CASH FLOW(Under Chilean GAAP, million Ch$)

Table 10

Million Ch$ 9M 02 9M 01CASH FLOWS ORIGINATED FROM OPERATING ACTIVITIESNet income (loss) for the year 16,966 45,609 Profit (losses) from sales of assets:(Profit) loss on sale of fixed assets (320) (2,824) Charges (credits) which do not represent cash flows:Depreciation 348,720 332,174Amortization of intangibles 8,119 6,967Write-offs and accrued expenses 36,766 61,173 Accrued profit from related companies (less) (4,757) (2,841) Accrued losses from related companies 4,701 14,765Amortization of positive goodwill 62,419 61,015Amortization of negative goodwill (less) (39,936) (37,587) Net, price-level restatement (6,677) 478 Net, foreign exchange effect 17,238 36,303 Other credits which do not represent cash flow (less) (246,049) (111,520) Other charges which do not represent cash flow 127,345 62,139Assets variations which affect cash flow:Decrease in receivables accounts 129,606 107,829 Decrease (increase) in inventory 2,489 (1,286) Decrease (increase) in other assets (85,100) 139,642 Liabilities variations which affect cash flow:(Decreased) increase in payable accounts related to operating income (106,318) (280,222) Increase of payable interest 98,993 34,074 Net increase (decrease) of payable income tax (61,351) (87,722) Increase (decrease) of other payable accounts related to non-operating income 9,686 7,104 Net (decrease) of payable value added tax and other taxes 10,991 (87,795) Profit related to minority interest 142,042 120,375 NET POSITIVE CASH FLOW ORIGINATED FROM OPERATING ACTIVITIES 465,571 417,850

24

CONSOLIDATED CASH FLOW(Under Chilean GAAP, million Ch$)

Cont. 10

9M 02 9M 01CASH FLOWS ORIGINATED FROM FINANCING ACTIVITIESShares issued and suscribed 1,815 -Proceeds from loans hired 801,162 1,304,674Proceeds from debt issuance 126,730 54,195 Other sources of financing 9,601 33,757Dividends paid (94,358) (124,919) Capital paid (81,065) - Loans, debt amortization (less) (858,104) (1,242,683) Issuance debt amortization (less) (21,546) (39,014) Amortization of loans obtained from related companies (23,526) (99,317) Amortization of other loans obtained from related companies (111) -Expenses paid related to debt issuance (less) (10,667) (2,613) Other disbursements related to financing (less) (11,660) (22,955) NET (NEGATIVE) CASH FLOW ORIGINATED FROM FINANCING ACTIVITIES (161,729) (138,876)

CASH FLOWS ORIGINATED FROM INVESTING ACTIVITIESSale of fixed assets 21,696 17,648Sale of other investments 1 - Collection upon other loans to related companies 2,494 - Other income on investments 1,148 4,982Additions to fixed assets (less) (209,773) (249,271) Long-term investments (less) (22,938) (7,146) Investment in financing instruments (13,999) (5) Other loans to related companies (less) - (170) Other investment disbursements (less) (4,039) (6,460) NET (NEGATIVE) CASH FLOW ORIGINATED FROM INVESTMENT ACTIVITIES (225,411) (240,421)

NET POSITIVE CASH FLOW FOR THE PERIOD 78,432 38,553

EFFECT OF PRICE-LEVEL RESTATEMENT UPON CASH AND CASH EQUIVALENT 2,611 10,373

NET VARIATION OF CASH AND CASH EQUIVALENT 81,043 48,927

INITIAL BALANCE OF CASH AND CASH EQUIVALENT 214,232 118,060

FINAL BALANCE OF CASH AND CASH EQUIVALENT 295,275 166,986

25

CONSOLIDATED CASH FLOW(Under Chilean GAAP, thousand US$)

Table 11 748.73 1000

Th. US$ 9M 02 9M 01CASH FLOWS ORIGINATED FROM OPERATING ACTIVITIESNet income (loss) for the year 22,660 60,915 Profit (losses) from sales of assets:(Profit) loss on sale of fixed assets (427) (3,771) (Profit) loss on sale of investment - - Charges (credits) which do not represent cash flows:Depreciation 465,748 443,650 Amortization of intangibles 10,843 9,305 Write-offs and accrued expenses 49,104 81,703 Accrued profit from related companies (less) (6,354) (3,794) Accrued losses from related companies 6,279 19,720 Amortization of positive goodwill 83,367 81,491 Amortization of negative goodwill (less) (53,338) (50,200) Net, price-level restatement (8,918) 639 Net, foreign exchange effect 23,022 48,487 Other credits which do not represent cash flow (less) (328,622) (148,946) Other charges which do not represent cash flow 170,081 82,992 Assets variations which affect cash flow:Decrease in receivables accounts 173,101 144,017 Decrease (increase) in inventory 3,325 (1,718) Decrease (increase) in other assets (113,660) 186,505 Liabilities variations which affect cash flow:(Decreased) increase in payable accounts related to operating income (141,998) (374,263) Increase of payable interest 132,215 45,509 Net increase (decrease) of payable income tax (81,940) (117,161) Increase (decrease) of other payable accounts related to non-operating income 12,936 9,487 Net (decrease) of payable value added tax and other taxes 14,680 (117,259) Profit related to minority interest 189,711 160,772 NET POSITIVE CASH FLOW ORIGINATED FROM OPERATING ACTIVITIES 621,815 558,079

26

CONSOLIDATED CASH FLOW(Under Chilean GAAP, thousand US$)

Cont. 11

9M 02 9M 01CASH FLOWS ORIGINATED FROM FINANCING ACTIVITIESShares issued and suscribed 2,425 - Proceeds from loans hired 1,070,028 1,742,516Proceeds from debt issuance 169,260 72,383Other sources of financing 12,823 45,086Dividends paid (126,025) (166,841) Capital paid (108,271) - Loans, debt amortization (less) (1,146,080) (1,659,722) Issuance debt amortization (less) (28,776) (52,108) Amortization of loans obtained from related companies (31,421) (132,648) Amortization of other loans obtained from related companies (148) - Expenses paid related to debt issuance (less) (14,247) (3,490) Other disbursements related to financing (less) (15,573) (30,659) NET (NEGATIVE) CASH FLOW ORIGINATED FROM FINANCING ACTIVITIES (216,004) (185,482)

CASH FLOWS ORIGINATED FROM INVESTING ACTIVITIESSale of fixed assets 28,977 23,571Sale of investments - - Collection upon loans to related companies - - Collection upon other loans to related companies 3,331 - Other income on investments 1,533 6,654Additions to fixed assets (less) (280,172) (332,925) Long-term investments (less) (30,636) (9,544) Investment in financing instruments (18,696) (7) Other loans to related companies (less) - (227) Other investment disbursements (less) (5,395) (8,628) NET (NEGATIVE) CASH FLOW ORIGINATED FROM INVESTMENT ACTIVITIES (301,057) (321,105)

NET POSITIVE CASH FLOW FOR THE PERIOD 104,753 51,491

EFFECT OF PRICE-LEVEL RESTATEMENT UPON CASH AND CASH EQUIVALENT 3,487 13,855

NET VARIATION OF CASH AND CASH EQUIVALENT 108,240 65,346

INITIAL BALANCE OF CASH AND CASH EQUIVALENT 286,128 157,680

FINAL BALANCE OF CASH AND CASH EQUIVALENT 394,368 223,026

27

CONSOLIDATED CASH FLOW ANALYSIS(Under Chilean GAAP)

During the period, the Company generated a net positive cash flow of US$ 105 million, explained as follows:

Table 12 748.73 1000

Effective Cash Flow (million Ch$) Sep-02 Sep-01 Sep 02-01 %Var 02-01Operating 465,571 417,850 47,721 11.4%Financing (161,729) (138,876) (22,853) 16.5%Investment (225,411) (240,421) 15,010 (6.2%)Net cash flow of the period 78,432 38,553 39,879 103.4%

Table 12.1

Effective Cash Flow (thousand US$) Sep-02 Sep-01 Sep 02-01 %Var 02-01Operating 621,815 558,079 72,880 11.4%Financing (216,004) (185,482) (34,901) 16.5%Investment (301,057) (321,105) 22,924 (6.2%)Net cash flow of the period 104,753 51,491 53,262 103.4%

Operating activities generated a net positive cash flow of US$ 622 million, 11.4% greater than September2001. This flow is mainly related to a profit for the period of US$ 23 million, plus net charges to income that donot represent cash flow for US$ 411 million. Added to these, there is a reduction in assets that affect theoperating cash flow for US$ 63 million, and an increase in liabilities that affect the operating cash flow by US$126 million.

Financing activities produced a negative cash flow of US$ 216 million mainly due to: loan payment forUS$1,146 million, dividend payment for US$ 126 million, Bonds payment for US$ 29 million and capitalreductions in subsidiaries for US$ 108 million. These were partially compensated by loans received andBonds issued for US$ 1,070 million and US$ 169 million, respectively.

Investment activities generated a net negative cash flow of US$ 301 million, basically explained by theaddition of fixed assets by US$ 280 million, investments in financial instruments for US$ 19 million,investments in subsidiaries for US$ 31 million and other investments of US$ 5 million. These were partlycompensated by the sale of fixed assets for US$ 29 million, loans collections from related companies for US$3million and other income for US$ 2 million.

28

ADDITIONAL CASH FLOW INFORMATION

Table 13

MM Ch$9M 01 9M 02 9M 01 9M 02 9M 01 9M 02 9M 01 9M 02 9M 01 9M 02

Chile 818 1,847 88,704 64,931 0 0 7,366 8,036 96,888 74,814Argentina 0 0 11,513 0 4,369 532 0 0 15,882 532Perú 0 0 1,835 1,116 0 0 0 0 1,835 1,116Brazil 0 1,342 0 1,291 0 0 0 0 0 2,633Colombia 469 0 0 0 0 0 0 0 469 0TOTAL 1,287 3,189 102,052 67,338 4,369 532 7,366 8,036 115,074 79,095

Table 13.1688.05Th US$

9M 01 9M 02 9M 01 9M 02 9M 01 9M 02 9M 01 9M 02 9M 01 9M 02Chile 1,093 2,467 118,473 86,722 0 0 9,838 10,733 129,403 99,921Argentina 0 0 15,377 0 5,835 711 0 0 21,212 711Perú 0 0 2,451 1,491 0 0 0 0 2,451 1,491Brazil 0 1,792 0 1,724 0 0 0 0 0 3,517Colombia 626 0 0 0 0 0 0 0 626 0TOTAL 1,719 4,259 136,300 89,936 5,835 711 9,838 10,733 153,692 105,639

Interest Received Dividends Received

Interest Received Dividends Received Management Fee Other TOTAL

Management Fee Other TOTAL

29

Table 14

Million Ch$ Sep-02 Sep-01 Sep-02 Sep-01Endesa S.A. 90,892 42,749 148,983 144,250Chilectra S.A. 13,028 19,568 9,316 8,600Río Maipo S.A. 4,402 2,572 1,386 1,141Edesur S.A. 13,377 58,014 50,572 54,617Edelnor S.A. 14,104 18,216 13,342 12,229Cerj 19,871 46,216 43,042 34,873Coelce 34,774 36,619 32,506 30,043Codensa S.A. 18,823 24,777 46,813 43,904Cam Ltda. 176 391 819 800Inmobiliaria Manso de Velasco Ltda. - - 151 184Synapsis Soluciones y Servicios Ltda. 326 147 1,034 942Holding Enersis - - 755 591Total 209,773 249,271 348,719 332,174

629748.73

Table 14.1 1.335595

748.73Th US$ Sep-02 Sep-01 Sep-02 Sep-01Endesa S.A. 121,395 57,096 198,981 192,660Chilectra S.A. 17,400 26,135 12,442 11,486Río Maipo S.A. 5,879 3,436 1,851 1,523Edesur S.A. 17,866 77,483 67,544 72,946Edelnor S.A. 18,837 24,329 17,820 16,333Cerj 26,540 61,726 57,487 46,576Coelce 46,444 48,909 43,415 40,125Codensa S.A. 25,140 33,093 62,523 58,638Cam Ltda. 235 523 1,094 1,069Inmobiliaria Manso de Velasco Ltda. - - 202 246Synapsis Soluciones y Servicios Ltda. 435 197 1,381 1,259Holding Enersis - - 1,008 789Total 280,172 332,925 465,747 443,649

Payments for additions of fixed assets

Payments for additions of fixed assets Depreciation

Depreciation

30

PARENT COMPANY INCOME STATEMENT(Under Chilean GAAP, million Ch$)

Table 15

Million Ch$9M 02 9M 01 Var 02-01 Chg %

Operating Revenues 3,164 3,163 2 0.0%Operating Expenses (788) (623) (165) -26.5%Operating Margin 2,376 2,539 (164) -6.4%

Selling and Administrative Expenses (12,651) (14,723) 2,072 14.1%

Operating Income (10,275) (12,184) 1,909 15.7%

Interest Income 42,598 32,929 9,669 29.4%Interest Expense (108,738) (133,945) 25,207 18.8%

Net Financial Income (Expenses) (66,140) (101,016) 34,876 34.5%Equity Gains from Related Companies 172,309 275,782 (103,472) -37.5%Equity Losses from Related Companies (2,350) (456) (1,893) -414.8%

Net Income from Related Companies 169,960 275,325 (105,366) -38.3%Other Non Operating Income 25,246 23,220 2,026 8.7%Other Non Operating Expenses (41,692) (11,959) (29,733) -248.6%

Net other Non Operating Income (Expense) (16,445) 11,261 (27,707) -246.0%Price Level Restatement 1,611 4,380 (2,769) -63.2%Foreign Exchange Effect (29,577) (99,449) 69,872 70.3%

Net of Monetary Exposure (27,965) (95,069) 67,104 70.6%Positive Goodwill Amortization (39,874) (37,081) (2,793) -7.5%Non Operating Income 19,535 53,421 (33,886) -63.4%Net Income b. Taxes, Min Int and Neg Goodwill Amort 9,260 41,237 (31,978) -77.5%

Income Tax 7,643 4,321 3,322 76.9%Negative Goodwill Amortization 64 51 13 25.8%

NET INCOME 16,966 45,609 (28,643) -62.8%

31

PARENT COMPANY INCOME STATEMENT(Under Chilean GAAP, thousand US$)

Table 15.1

Th. US$ 9M 02 9M 01 Var 02-01 Chg %Operating Revenues 4,226 4,224 2 0.0%Operating Expenses (1,053) (832) (221) -26.5%Operating Margin 3,173 3,392 (218) -6.4%

Selling and Administrative Expenses (16,897) (19,664) 2,768 14.1%

Operating Income (13,723) (16,273) 2,549 15.7%

Interest Income 56,893 43,980 12,914 29.4%Interest Expense (145,230) (178,896) 33,666 18.8%

Net Financial Income (Expenses) (88,337) (134,917) 46,580 34.5%Equity Gains from Related Companies 230,135 368,333 (138,197) -37.5%Equity Losses from Related Companies (3,138) (610) (2,529) -414.8%

Net Income from Related Companies 226,997 367,723 (140,726) -38.3%Other Non Operating Income 33,719 31,013 2,706 8.7%Other Non Operating Expenses (55,683) (15,972) (39,711) -248.6%

Net other Non Operating Income (Expense) (21,964) 15,041 (37,005) -246.0%Price Level Restatement 2,152 5,850 (3,698) -63.2%Foreign Exchange Effect (39,502) (132,823) 93,321 70.3%

Net of Monetary Exposure (37,350) (126,974) 89,623 70.6%Positive Goodwill Amortization (53,256) (49,525) (3,731) -7.5%Non Operating Income 26,090 71,349 (45,258) -63.4%Net Inc b. Taxes, Min Int and Neg Goodwill Amort 12,367 55,076 (42,709) -77.5%

Income Tax 10,208 5,771 4,437 76.9%Negative Goodwill Amortization 85 68 17 25.8%

NET INCOME 22,660 60,915 (38,255) -62.8%

32

PARTIALLY CONSOLIDATED INCOME STATEMENT IN MILLION Ch$

Table 16Enersis S.A.

Parent Company Consolidated with Enersis IntThird Quarter 2002 Earnings Report (Under Chilean GAAP)

(in million Ch$ of 9M year 2002)

3Q 02 3Q 01 Var % 9M 02 9M 01 Var %

785 676 16.2% Gross Operating Margin 2,376 2,150 10.5%-3,462 -4,435 21.9% S&A Expenses -12,651 -14,878 15.0%

-2,676 -3,759 28.8% Operating Income -10,275 -12,728 19.3%

17,171 18,461 -7.0% Endesa 38,949 25,838 50.7%-17,880 9,748 -283.4% Chilectra -18,001 27,427 -165.6%

2,715 2,233 21.6% Río Maipo 7,421 6,967 6.5%-7,685 13,610 -156.5% Edesur 5,268 34,335 -84.7%3,542 1,810 95.7% Edelnor 8,735 6,294 38.8%

22,677 15,761 43.9% Cerj 72,103 39,628 81.9%2,361 -1,540 253.3% Coelce 1,475 -2,860 151.6%

-4,731 1,898 -349.2% Codensa -3,598 4,256 -184.5%1,633 2,116 -22.8% CAM LTDA 4,152 5,743 -27.7%

343 385 -10.9% Inm Manso de Velasco 1,377 1,745 -21.0%965 970 -0.5% Synapsis 3,264 3,565 -8.5%

-163 -162 -0.9% Endesa Market Place -163 -355 54.1%-83 3,565 -102.3% Other -112 11,592 -101.0%

20,866 68,855 -69.7% Net Income from Related Companies 120,869 164,175 -26.4%

22,119 19,944 10.9% Interest Income 57,444 58,084 -1.1%-39,592 -37,875 -4.5% Interest Expense -108,738 -122,801 11.5%-17,473 -17,931 2.6% Net Financial Income (Expenses) -51,294 -64,717 20.7%

16,117 10,228 57.6% Other Non Operating Income 26,365 23,984 9.9%-14,067 -2,316 -507.3% Other Non Operating Expenses -41,784 -13,030 -220.7%

2,050 7,912 -74.1% Net other Non Operating Income (Expenses) -15,419 10,954 -240.8%

945 737 -28.1% Price Level Restatement 594 -1,579 137.6%3,023 -17,222 117.6% Foreign Exchange Effect 4,728 -25,484 118.6%3,968 -16,485 124.1% Net Price Level Restatement and Foreign Exchange Effect 5,322 -27,063 119.7%

-13,475 -13,596 0.9% Positive Goodwill Amortization -39,944 -40,079 0.3%

-4,065 28,754 -114.1% Non Operating Income 19,534 43,270 -54.9%

-6,741 24,996 -127.0% Net Income before (1), (2) & (3) 9,259 30,542 -69.7%

-139 1,521 109.2% Income Tax (1) 7,643 4,241 80.2%24 19 26.8% Negative Goodwill Amortization (2) 64 51 25.8%

0 5,362 -100.0% Minority Interest (3) 0 10,774 -100.0%-6,856 31,898 -121.5% NET INCOME 16,966 45,609 -62.8%

(0.83) 3.85 EPS (Ch$) 2.05 5.50 (0.06) 0.26 EPADS (US$) 0.14 0.37

8,291,020 8,291,020 Common Shares Outstanding (MM) 8,291,020 8,291,020

33

PARTIALLY CONSOLIDATED INCOME STATEMENT IN THOUSAND US$

Table 16.1Enersis S.A.

Parent Company Consolidated with Enersis IntThird Quarter 2002 Earnings Report (Under Chilean GAAP)

(in thousand US$ of 9M year 2002)

3Q 02 3Q 01 Var % 9M 02 9M 01 Var %

1,049 903 16.2% Gross Operating Margin 3,173 2,871 10.5%-4,623 -5,923 21.9% S&A Expenses -16,897 -19,870 15.0%

-3,575 -5,020 28.8% Operating Income -13,723 -16,999 19.3%

22,933 24,657 -7.0% Endesa 52,020 34,510 50.7%-23,881 13,020 -283.4% Chilectra -24,042 36,631 -165.6%

3,626 2,982 21.6% Río Maipo 9,911 9,306 6.5%-10,264 18,177 -156.5% Edesur 7,035 45,858 -84.7%

4,731 2,417 95.7% Edelnor 11,666 8,407 38.8%30,287 21,050 43.9% Cerj 96,301 52,927 81.9%

3,154 -2,057 253.3% Coelce 1,970 -3,820 151.6%-6,318 2,536 -349.2% Codensa -4,805 5,684 -184.5%2,181 2,826 -22.8% CAM LTDA 5,545 7,671 -27.7%

458 515 -10.9% Inm Manso de Velasco 1,840 2,330 -21.0%1,288 1,295 -0.5% Synapsis 4,359 4,761 -8.5%-218 -216 -0.9% Endesa Market Place -218 -475 54.1%-110 4,761 -102.3% Others -150 15,482 -101.0%

27,868 91,963 -69.7% Net Income from Related Companies 161,432 219,272 -26.4%

29,543 26,637 10.9% Interest Income 76,722 77,577 -1.1%-52,879 -50,586 -4.5% Interest Expense -145,230 -164,012 11.5%-23,336 -23,949 2.6% Net Financial Income (Expenses) -68,508 -86,435 20.7%

21,526 13,660 57.6% Other Non Operating Income 35,213 32,033 9.9%-18,788 -3,094 -507.3% Other Non Operating Expenses -55,807 -17,403 -220.7%

2,738 10,567 -74.1% Net other Non Operating Income (Expenses) -20,594 14,630 -240.8%

1,262 985 -28.1% Price Level Restatement 794 -2,109 137.6%4,038 -23,002 117.6% Foreign Exchange Effect 6,314 -34,036 118.6%5,299 -22,017 124.1% Net Price Level Restatement and Foreign Exchange Effect 7,108 -36,145 119.7%

-17,997 -18,159 0.9% Positive Goodwill Amortization -53,348 -53,530 0.3%

-5,429 38,404 -114.1% Non Operating Income 26,090 57,792 -54.9%

-9,004 33,384 -127.0% Net Income before (1), (2) & (3) 12,367 40,792 -69.7%

-186 2,032 109.2% Income Tax (1) 10,208 5,664 80.2%33 26 26.8% Negative Goodwill Amortization (2) 85 68 25.8%

0 7,162 -100.0% Minority Interest (3) 0 14,390 -100.0%

-9,157 42,603 -121.5% NET INCOME 22,659 60,915 -62.8%

(0.83) 3.85 EPS (Ch$) 2.05 5.50 (0.06) 0.26 EPADS (US$) 0.14 0.37

8,291,020 8,291,020 Common Shares Outstanding (MM) 8,291,020 8,291,020

34

OWNERSHIP OF THE COMPANY AS OF SEPTEMBER 30th, 2002Total Shareholders: 10,148

CONFERENCE CALL INVITATION

Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Thursday, October31st, 2002, at 11:00 am (New York time). To participate, please dial +1(973) 694-6836 or (800) 360-9865 (toll free USA),

approximately 10 minutes prior to the scheduled start time.The phone replay will be available since October 31st, at 1:00 pm, until November 11th, at 11:59 am, dialing +1(973) 709-2089 or

(800) 428-6051 (toll free USA).

To access the call online, or to access the replay, go to http://www.enersis.com

This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statementsregarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’sbusiness plans; (2) Enersis’s cost-reduction plans; (3) trends affecting Enersis’s financial condition or results of operations, includingmarket trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile orelsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’s or its affiliates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materiallyfrom those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capitalmarkets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisionsby government regulators in Chile or elsewhere and other factors described in Enersis’s Annual Report on Form 20-F. Readers arecautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes noobligation to release publicly the result of any revisions to these forward-looking statements.