Edison: the 2006-2013 industrial plan is approved

Average annual revenue growth expected to top 5% total investments of 5 billion euros net indebtedness expected to decline, even in case of a dividends’ payout equal to about 50 per cent

Milan, December 07, 2005 - Edison’s Board of Directors, meeting today at the Company’s Foro Buonaparte headquarters, approved the Company’s 2006-2013 Industrial Plan, which reaffirms and broadens the objectives of industrial plans approved in previous years.

Specifically, Edison’s goal is to consolidate its position as a leading operator in the electric power and hydrocarbon industries by building important infrastructures at the European level in the field of natural gas and developing innovative services for its customers.

Between 2006 and 2013, Edison will pursue these objectives by investing a total of about 5 billion euros in new production capacity, new infrastructures and new hydrocarbon exploration and production projects.

In the Electric Power area, Edison’s goal is to increase its market share with customers in the regions with the greatest growth potential by taking full advantage of market deregulation, when it gets under way in July 2007. The successful completion of one of the most ambitious program of investments in the renewal and expansion production capacity launched in Europe in the last ten years will provide the Group with energy at a competitive cost.

In the Hydrocarbons area, Edison will strive to become Italy’s second-largest operator and be recognized as an international player, thanks to the important infrastructural projects it is developing, such as the Rovigo regasification terminal, which will enable the Group to diversify its supply sources and gain access to competitively priced natural gas.

Over the length of the Industrial Plan, average annual revenues are expected to grow at a rate of more than 5%, with EBITDA increasing at an even faster pace.

On the financial side, the Group plans to fund its capital expenditures entirely with internally generated resources and, even if a decision is made to distribute dividends equal to about 50% of net profit, indebtedness is expected to decrease significantly over the Plan period.

The Board of Directors also decided to continue to look into other growth possibilities, which have already been the subject of in-depth studies and which, by leveraging the synergies created by the Company’s new and stable shareholder’s base, could further enhance the value of the Industrial Plan approved today.


Lastly, the Board of Director called a Special Meeting of the holders of savings shares, authorizing the Chairman and Chief Executive Officer to set the Meeting’s date. The Meeting’s Agenda will include the election of the joint representative of the holders of savings shares and the approval of the accounting of the fund provided to defray expenses incurred to protect the interests of the holders of savings shares.

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