Regarding Resolution of Management Board of Visagino Atominė Elektrinė UAB Dated August 12, 2010


Lietuvos elektrine  AB has received a letter from Visagino Atominė Elektrinė
UAB to the effect that on August 12, 2010 during the meeting of the Management
Board a resolution was adopted regarding the definition of the main guidelines
for reorganization of the electricity sector.  This resolution of the
Management Board was also approved by shareholders of Visagino Atominė
Elektrinė UAB. In the transcript of minutes of the meeting of the Management
Board, dated August 12, 2010 the following essential defined guidelines of the
reorganization are presented: 
1. The Reorganization is performed in order to ensure that the model of the
Lithuanian energy sector activity complies with the National energy strategy,
requirements of the Third Energy Package of the EU, aimed at liberalization of
electricity and gas markets and creates conditions for integration of the
Lithuanian electric energy system into the European Union market and ensures
financing of the commenced strategic energy projects; 
2. The Reorganization aims to ensure effective separation of electricity
transmission activity from generation, supply and distribution activities and
their commercial interests - to reorganize vertically integrated energy
companies performing their activities in the sector; 
3. During the Reorganization there will be formed four main blocks of companies
for the activities of transmission, generation, distribution and maintenance: 
3.1. Main goals of formation of the transmission block: (i) To separate and
purify its activity, (ii) To comply with requirements of the Third Energy
Package of the EU, (iii) to form a strong company, capable of interconnecting
the Lithuanian electricity grid with ENTSO-E / ECN grid, beginning with the
links to Poland, Sweden, (iv) to implement measures, meant to facilitate the
liberalization of the electricity market, (v) to transfer auxiliary functions
to maintenance companies. 
3.2. Goals of formation of the generation block: (i) To purify and concentrate
the activity of generation in one company - the joint-stock company Lietuvos
Energija (these aims, inter alia, are achieved by transferring the joint-stock
company Lietuvos Elektrinė to the joint-stock company Lietuvos Energija), (ii)
To reorganize and centralize generation capacities, necessary to ensure the
energy independence of Lithuania, (iii) to transfer auxiliary functions to
maintenance companies. 
3.3. Main goals of formation of the distribution block: (i) To form a
customer-oriented and effectively functioning company while revising the
branches of the core activity (ii) to obtain all possible synergies while
merging the joint-stock company VST and joint-stock company Rytų Skirstomieji
Tinklai, (iii) To prepare the distribution networks company, which is currently
under merging, for possible attracting of funds, (iv) to transfer auxiliary
functions to maintenance companies. 
3.4. Main goals of formation of the maintenance block: (i) To purify and
optimize activities of maintenance, by establishing two companies of network
maintenance, by implementing promotion measures of free market and, when
necessary, by allowing entrance of a strategic investor (if it is economically
feasible), (ii) the Generation maintenance company: to concentrate capacities
and maintain competitive advantage, (iii) the Assets management company: to
accumulate, optimize non-technological real estate and transport under
ownership, to sell redundant assets at most favorable conditions, (iv)
Commercial IT company: to perform the sales of data transmission and data
center services at the market. 

CFO  Rolandas Jankauskas
tel.+370 528 33743