Ad-hoc | 9 March 2005 23:02

E.ON AG:Intention to return full value of Degussa stake to shareholders; outlo

Ad hoc announcement §15 WpHG Degussa disposal; outlook E.ON AG:Intention to return full value of Degussa stake to shareholders; outlo Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— E.ON AG: intention to return full value of Degussa stake to shareholders; outlook The E.ON AG Board of Management today decided that the company intends to return to its shareholders the full value of its nearly 43 percent stake in Degussa. The precise timing and manner remain to be determined. This participation will be in addition to E.ON’s ordinary dividend payment. E.ON is committed to delivering, on average, double-digit annual growth in its per-share dividend through 2006. At the Annual Shareholders Meeting on April 27, 2005, the Board of Management and Supervisory Board will propose that the dividend for the 2004 financial year be raised to 2.35 euros per share (prior year: 2 euros per share). By 2007 E.ON is committed to achieving a payout ratio of between 50 percent and 60 percent of net income prior to exceptional effects. In 2004 E.ON recorded adjusted EBIT (1) of 7,361 million euros and net income of 4,339 million euros. For 2005 E.ON expects adjusted EBIT to be slightly above the number posted in 2004. E.ON’s ability to achieve the same high level of net income will depend on the book gains on the disposals of Viterra and Ruhrgas Industries and on the effects of the marking to market of derivatives at year end. In the future E.ON intends to increase the degree to which it supplements organic growth with targeted asset purchases, which may include larger acquisitions. (1) Non-GAAP financial measure; see reconciliation to net income on page 25 of E.ON’s 2004 Annual Report. E.ON AG E.ON-Platz 1 40479 Düsseldorf Deutschland ISIN: DE0007614406 (DAX) WKN: 761440 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; Eurex; New York End of ad hoc announcement (c)DGAP 09.03.2005 092302 Mär 05