Capital Increase to Invest in Hydropower

The resulting enabling act allows the Republic of Austria to subscribe to the planned capital increase in the total amount of EUR1 billion, in proportion to its current ownership of 51%, i.e. EUR510 million, and thereby maintaining its legally required ownership.

With the clarification regarding the support of the majority shareholder as well as the support of other main shareholders EVN, Wiener Stadtwerke and TIWAG, Verbund AG is now in a position to continue preparation of the capital increase. Verbund AG plans to invite its shareholders to an extraordinary shareholders' meeting in September 2010 in which the necessary resolutions can be made. It is expected that the capital increase and the placement of new shares on the market will be executed this year. The exact timing is mainly dependent on market conditions.