Edison’s IWH affiliate sells additional equity investments

Public disclosure required by Consob Resolution No. 11971 of May 14, 1999, as amended. Scottish Water Treatment and Effluent Disposal Companies. The sales proceeds total 27.1 million British pounds

Milan, June 30, 2004 - International Water Holding, a joint venture of Edison and Bechtel in which Edison SpA holds a 50% interest, sold the interests it held indirectly in International Water (Highlands) Limited, International Water (Tay) Limited, IWL Moray Montrose Limited and IWUU (Highland) Limited to Infrastructure Investors LP, a fund managed by Barclays Private Equity Limited and Société Générale. The aggregate sales price for the investments held in these four companies amounted to 27.1 million British pounds.

The companies that were sold hold indirect interests in Scottish companies that provide water treatment and effluent disposal services in the cities of Inverness, Moray and Dundee.

This transaction will not have a material economic impact on Edison’s financial statements.