VERBUND successfully completes its approx. € 1 billion capital increase

After the expiration of the subscription and offer period as well as the completion of the bookbuilding process, the final subscription and offer price was set at € 25.50 per new share. The subscription ratio was approx. 1:7.9. The proceeds from the transaction will facilitate the implementation of VERBUND’s long-term investment plan and strengthen its capital structure.

Strong interest from current shareholders
Existing shareholders exercised approx. 84% of their subscription rights at the subscription and offer price. As previously indicated, the Republic of Austria and TIWAG-Tiroler Wasserkraft AG fully exercised their subscription rights. The syndicate consisting of EVN AG and Wiener Stadtwerke Holding AG did so almost in full. The remaining shares were placed with international and Austrian investors. CEO Wolfgang Anzengruber states: “We are very satisfied with the participation of our existing shareholders and the high demand from international and Austrian investors. We view this as strong evidence of existing as well as new shareholders' confidence in VERBUND and our planned strategy.”

Increase of share capital to approx. € 347.4 million
With the registration of the capital increase, the company’s share capital will increase from € 308.2 million to approx. € 347.4 million, while the company’s market capitalisation rises to approx. € 9 billion.Trading in the new shares on the Vienna Stock Exchange is expected to commence on
26 November 2010. The new shares will be fully entitled to dividends for the fiscal year 2010.

Capital increase to strengthen capital structure and facilitate implementation of the investment plan
“Through the successful capital increase, we strengthened our equity base and will be able to continue our attractive investment programme while securing a solid rating in “A” territory. Highest priority within our investments is the expansion of hydro power and the high-voltage grid in Austria”, Wolfgang Anzengruber stated. 

VERBUND’s investment plan comprises growth investments of approximately € 2.4 billion over the next six years. These include large hydro power projects such as the pumped storage plants Reißeck II and Limberg III, the run-of-river plant Gemeinschaftskraftwerk Inn (Inn Joint Venture) and the CCGT plants Mellach and Klagenfurt as well as the important expansion of the high-voltage grid in Austria. The investment programme is complemented by equity investments in Turkey and Italy. 

VERBUND: One of the leading producers of electricity from hydropower in Europe 
VERBUND is Austria’s major electricity provider and one of the leading producers of electricity from hydro power in Europe. The company operates the largest supra-regional high-voltage grid in Austria with voltage levels of 110 kV, 220 kV and 380 kV. In addition, VERBUND is active in the important power markets Germany, Italy, France and the growth market Turkey. In 2009, VERBUND generated sales of € 3,483.1 million and had an operating result of € 1,042.3 million. 

Disclaimer
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN, AUSTRALIA OR TO U.S. PERSONS

This document does not constitute an offer of securities for sale or a solicitation of an offer to purchase or to subscribe for securities of VERBUND AG. The securities of VERBUND AG that this document relates to were already sold.   This information is not for release, publication or distribution in or into the United States of America and may not be distributed to U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")) or publications with a general circulation in the United States, except to persons reasonably believed to be qualified institutional buyers ("QIBs") as defined in Rule 144A of the Securities Act. This information does not constitute an offer of securities for sale, a solicitation of an offer to purchase or to subscribe for securities of VERBUND AG in the United States. The securities of VERBUND AG may not be offered, sold or delivered in the United States or to or for the account or benefit of U.S. persons, unless registered under the Securities Act or pursuant to an exemption from such registration.  The securities have not been registered under the Securities Act. There will be no public offer of securities of VERBUND AG in the United States.