VERBUND AG — M&A Activity 2009

Jun 8, 2009

News Details

Ad-hoc | 8 June 2009 07:58

Österreichische Elektrizitätswirtschafts AG: Verbund acquires 13 hydro power plants from E.ON

Österreichische Elektrizitätswirtschafts AG / Mergers & Acquisitions

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The issuer is solely responsible for the content of this announcement.

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Verbund, Austria's leading electricity company, further enforces its
position as one of the leading hydro power producers in Europe and acquires
a total of 13 hydro power plants with a capacity of 312 MW along the
Bavarian part of the river Inn from German energy utility E.ON.

Last year E.ON has been obliged by the EU-commission to sell a total
capacity of approx. 5,000 MW of their German power plants. According to
this obligation, E.ON has launched a tendering procedure of 13 run-of-river
power plants along the Bavarian part of the river Inn with a total capacity
of 312 MW. Verbund has participated and successfully acquired the power
plants. The annual generation totals 1,847 GWh and corresponds to
approximately 9 % of the total run-of-river production generated by
Verbund.

The acquisition price consists of a cash purchase price and a 20 year
electricity purchase and service contract for the Verbund owned power plant
group Zemm/Ziller. E.ON and Verbund agreed upon silence about the exact sum
of the acquisition price.

Verbund intends to offer a stake of up to 30 % of the acquired Inn hydro
power plants to interested Bavarian municipalities.

This transaction fits perfectly with Verbund's long-term development
strategy to enforce the Austrian group's position as one of Europe's
leading hydro power producers. In Austria, Verbund operates storage and
run-of-river hydro power plants with a total capacity of approx. 6,600 MW,
has currently 500 MW hydro power plant projects under construction and is
planning the realisation of 550 MW more until 2015.

In addition hydro power is genuine part of its international growth
strategy as well: The group is targeting to acquire hydro concessions in
France as part of its joint venture Poweo's business plan and the
enforcement of its activities in French energy market. In Turkey, Verbund
is planning and constructing nine hydro power plants with a total capacity
of approximately 1,000 MW together with its regional partner Sabanci group.
Furthermore Verbund recently celebrated the groundbreaking ceremony for the
construction of a 48 MW run-of-river power plant in Albania.

Furthermore, the acquisition of the power plants in Germany supports
Verbund's successful retail and trading activities in one of it's defined
core markets. The German electricity market - providing an annual sales
volume of approximately 22,700 GWh, which corresponds to approx. 40 % of
the total sales volume of Verbund - is Verbund's main international market.
Besides Verbund is going to benefit from multiple synergies having
VERBUND-Austrian Hydro Power's plants close-by the acquired plants on the
river Inn.

The closing of the transaction is scheduled for quarter 3/2009 and is
subject to certain conditions precedent, including, in particular, approval
by the competent anti-trust authorities.

Contact:
Andreas Wollein
Head of Group Finance and Investor Relations
T.: +43 (0)5 03 13 - 52604
F.: +43 (0)5 03 13 - 52694
mailto:investor@verbund.at

08.06.2009 Financial News transmitted by DGAP

Language: English
Issuer: Österreichische Elektrizitätswirtschafts AG
Am Hof 6A
1010 Wien
Österreich
Phone: 0043-1-53113-52616
Fax: 0043-1-53113-52694
E-mail: andreas.wollein@verbund.at
Internet: www.verbund.at
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Hamburg, Düsseldorf, München,
Stuttgart; Foreign Exchange(s) Wien

End of News DGAP News-Service

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