Press Release - E.ON and Statkraft SF


Pressrelease

(Munich/Oslo, 1st March, 2002) After the agreed cancellation of their joint Viking Cable interconnector project and based on their good cooperation in the Scandinavian markets and as shareholders in Sydkraft since several years, E.ON Energie and Statkraft have decided to strengthen their ties by several agreements:

- As already announced, Statkraft is to be a third partner and shareholder in Baltic Cable AB, the joint venture of E.ON Energie and Sydkraft, thus allowing it to participate in the physical exchange of electricity between the Nordic and the Continental European markets.
- And, E.ON Energie and Statkraft will jointly support and develop Sydkraft, the major private Swedish utility. Statkraft respects the majority shareholding of E.ON Energie and its management control of Sydkraft, while E.ON Energie supports the minority shareholding of Statkraft in Sydkraft and supports Statkraft's interest to acquire additional shares. As a result, E.ON Energie will hold a majority interest of approximately 55 % of the capital and voting rights in Sydkraft, while Statkraft will hold its interest to approximately 44 % (earlier 35,7 %) of the capital and voting rights in Sydkraft. The other minority shareholders will hold the remaining shares. Sydkraft has however been unlisted from the Stockholm exchange since the free remaining flow does not support such a listing any more.

Hans-Dieter Harig, CEO of E.ON Energie, stated: "Sydkraft is the cornerstone of our Scandinavian investments and we are proud that we could acquire the majority and management control last fall. And, we are convinced that the cooperation with Statkraft will support our Nordic strategy."

Bard Mikkelsen, CEO of Statkraft, emphasises: "Sydkraft is a well-run company and we intend to further strengthen it, based on the good understanding with our German partner E.ON Energie. And, we are convinced that Statkraft has also strengthened its strategic position by becoming a partner in Baltic Cable."