  We study N=2 vacua in spontaneously broken N=4 electrically gauged
supergravities in four space-time dimensions. We argue that the classification
of all such solutions amounts to solving a system of purely algebraic
equations. We then explicitly construct a special class of consistent N=2
solutions and study their properties. In particular we find that the spectrum
assembles in N=2 massless or BPS supermultiplets. We show that (modulo U(1)
factors) arbitrary unbroken gauge groups can be realized provided that the
number of N=4 vector multiplets is large enough. Below the scale of partial
supersymmetry breaking we calculate the relevant terms of the low-energy
effective action and argue that the special Kahler manifold for vector
multiplets is completely determined, up to its dimension, and lies in the
unique series of special Kahler product manifolds.
