Edison completes the purchase of a 25% interest in Ise

Public disclosure required by Consob Resolution No. 11971 of May 14, 1999, as amended.

Milan, July 09, 2004 - Edison bought today from Ilva, a Riva Group company, a 25% interest in Ise at a price of 145 million euros. The sale was completed after Ise distributed to its stockholders, Ilva and Finel (60% Edison and 40% EDF International), reserves totaling 260 million euros, 65 million euros of which went to Ilva. The purchase price was paid in cash.

Concurrently with the transfer of the shares, Ise and Ilva settled past disputes regarding the interpretation and implementation of certain provisions of a 1993 contract that governed the mutual supply of utility services at the Taranto facilities. In addition, Ise and Ilva agreed to amend the abovementioned contract, with a view to preventing similar disagreements in the future.

This transaction is the first step in a previously announced program that will enable Edison to absorb Ise, once it purchases the remaining 75% interest from Finel.

The merger proposal will be submitted for the approval of the Board of Directors on July 28, 2004. At that meeting, the Board of Directors will also review the Group’s preliminary results at June 30, 2004.