VERBUND Result First-Half 2001

The operating result was kept at last year’s level, sales revenues and the financial result were increased considerably. At the end of the first half of 2001 the company presents itself with a number of new strategic partnerships, which will strengthen VERBUND’s position on the fully liberalized electricity market.

Like in the 1st quarter of 2001, the expansion of international business (+ 72.6 %) and first successes on the Austrian final customer market contributed again to a significant increase in power sales by approx. 20.7 % to approx. 583 million EUR. Already more than 50 % are attributable to international business. Grid returns increased by approx. 13.5 % compared to the year 2000. The first-half 2001 operating result, approx. 147 million EUR, corresponds to last year’s level.

The financial result was relieved considerably, by approx. 32 million EUR (37.6 %). This improvement was primarily attributable to the valuation-related price losses in JPY- and CHF bonds (improvement 28 million) that were considerably lower than last year. Thus the after-tax profit also increased considerably, by approx. 20 million EUR or 47.4 % compared to last year.

The earnings per share increased to 2.02 EUR (in 2000: 1.16 EUR) in the first half of 2001.

Due to continued restructuring measures and a further reduction of the number of employees personnel expenses were reduced by approx. 21 million EUR to approx. -164 million EUR (in 2000: -185 million EUR). Due to the consistent implementation of cost reduction programs the other operating expenses were cut by approx. 21.9 %.

With new strategic partnerships and marketing concepts, VERBUND will further strengthen its position in the liberalized power market in the second half of the year 2001. The company’s strategy will continue to focus on strengthening the market leadership in Austria, internationalizing the electricity business, expanding the commercial business, and concentrating on hydropower, VERBUND´s core business.