Ad-hoc-Announcement Quarter Results �sterreichische Elektrizit�tswirtschafts AG: Verbund once again clearly improves its result in quarters 1-3/2008 and confirms earnings forecast Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ In spite of the upheaval on the financial markets and the impending global economic crisis, Verbund can present a very good result for quarters 1-3/2008 and confirm that the economic development was indeed very positive. On the basis of the good earnings trend, Verbund confirms its earnings forecast for the full year 2008 and expects that the operating result and the group result will increase by at least 20 % compared to fiscal 2007. Sales revenue increased by 17.1% to � 2,637.2 million in quarters 1-3/2008, the operating result rose by 29.2% to � 885.3 million and the group result was up 31.6% at � 602.5 million. The control-specific ratios displayed the following development: The EBIT margin rose from 30.4 % to 33.6 %, the EBITDA margin improved from 36.4 % to 38.6 % and net gearing was lowered from 82.0 % to 76.7 %. The operating cash flow was also significantly improved � it increased from � 512.6 million to � 985.1 million. The Economic Value Added displayed a plus of 44.5 %. Ratios Unit Q1-3/2007 Q1-3/2008 Change Sales revenue million � 2,252.6 2,637.2 17.1 % Operating result million � 685.1 885.3 29.2 % Group result million � 457.9 602.5 31.6 % Net gearing % 82.0 76.7 6.5 % Operating cash flow million � 512.6 985.1 92.2 % Higher sales prices achieved in the European electricity markets At the beginning of the year, the spot market prices for electricity recovered from the very low prices quoted in fiscal 2007. This trend continued in the following months, primarily due to the still high prices for primary energy sources and CO2 emission rights. Verbund was therefore able to significantly increase its average sales prices in the European electricity markets in quarters 1-3/2008. Based on the present situation, a further clear increase can also be expected in fiscal 2009. Increase in generation from hydropower / one-off effect lowers thermal generation In quarters 1-3/2008, the water supply of the Austrian rivers, which is measured with a hydro coefficient, came to 1.02 and therefore lay two percentage points above the average for the last 30 years and 11 percentage points above the value recorded in the previous year. Generation at the run-of-river power plants therefore displayed a clear increase compared to the previous year. Generation at the storage power plants fell by approx. 3% on account of the lower reservoir levels compared to 2007. In total, electricity generation from hydropower rose by 1,681 GWh to 20,200 GWh. Generation at thermal power plants fell by 421 GWh to 2,248 GWh. This is largely attributable to the one-off renovation work at D�rnrohr power plant which was carried out between April and June. The total generation of the group, at 22,448 GWh, was 5.9 % higher than in the previous year. One-off effects in other operating expenses and the financial result Other operating expenses include negative one-off effects, primarily for renovation measures, in the amount of � 41.4 million while the financial result includes a negative one-off effect resulting from the impairment of securities in the amount of � 25.0 million. New power plant project abroad Verbund secured a contract for the construction of the 48 MW Ashta hydropower plant on the River Drin near the town of Shkoder in Albania. The corresponding contract was signed on 30 September in Tirana. The project will be carried out in cooperation with EVN under the industrial leadership of Verbund. Commissioning is planned for 2012. Progress has also been made in the renewable energies area where activities have been intensified this year: The two photovoltaic power plants acquired by Verbund in Spain were connected to the grid just a few days ago. The plants have a total capacity of 3 MW. Verbund�s joint ventures in Italy, France and Turkey are also developing very well. Effects of the financial market crisis on Verbund Verbund's growth strategy has hardly been impacted by the turbulence on the international financial markets. Due to the positive earnings trend, the increasing cash flow and the strong rating, Verbund has strong internal financing power and adequate liquidity. Earnings forecast for 2008 confirmed Assuming an average water supply for the remainder of the year as well as a stable development of the spot market prices and the short-term forward prices, we expect that the operating result and the group result will increase by at least 20 %. In addition, we intend to further increase the dividend for fiscal 2008 on the basis of a pay-out ratio of between 45 % and 50 %. The full report of quarters 1-3/2008 can be seen on www.verbund.at. Contact: Andreas Wollein Leiter Finanzmanagement und Investor Relations T.: +43 (0)5 03 13 - 52604 F.: +43 (0)5 03 13 - 52694 mailto:investor@verbund.at (c)DGAP 21.10.2008 --------------------------------------------------------------------------- Language: English Issuer: �sterreichische Elektrizit�tswirtschafts AG Am Hof 6A 1010 Wien �sterreich Phone: 0043-1-53113-52616 Fax: 0043-1-53113-52694 E-mail: andreas.wollein@verbund.at Internet: www.verbund.at ISIN: AT0000746409 WKN: 877738 Indices: ATX Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Hamburg, D�sseldorf, M�nchen, Stuttgart; Foreign Exchange(s) Wien End of News DGAP News-Service ---------------------------------------------------------------------------