Corporate | 15 July 2004 16:46

Bond Buyback and Exchange Program Successfully Completed

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Bond Buyback and Exchange Program Successfully Completed – Cash buyback tender rises to EUR1.25 billion due to strong demand – Group gross debt drops by EUR1.25 billion – New EUR650 million benchmark bond due July 2014 – Bond maturity profile evened out Essen, July 15, 2004 RWE Finance BV, a wholly owned subsidiary by RWE AG, successfully concluded the bond buy-back and exchange offer announced in early July including the exchange of old bonds for new, longer-term bonds. 1,143 mio EUR of the 2007 5.5% RWE Finance BV bonds (original issue volume: EUR2.5 billion) were repurchased at a price of 106,76, and 718 mio EUR of the 2008 5.375% RWE Finance BV bonds were bought back at a price of 106,71. With a maturity of 2014, the new bond has a 4.625% coupon and an issue volume of EUR650 million, giving it benchmark status. It is being issued by RWE Finance BV with the full guarantee by RWE AG. The cash buyback offer was increased to EUR1.25 billion owing to high demand, but still required a pro-rating using the method prescribed by the Offer Memorandum. Taking advantage of its financial strength, RWE will reduce the Group’s gross debt by EUR1.25 billion. Furthermore, the re-balancing of the note maturity profile will enable the company to further optimize its financial structure. Please direct inquiries to: Bill McAndrews Head of Group Press Relations Phone: +49-201-12-15095 Cell: +49-177-5515302 Michael Rosen Group Press Relations Phone: +49-201-17441 Cell: +49-172-2851858 end of message, (c)DGAP 15.07.2004 ——————————————————————————– WKN: 703712; ISIN: DE0007037129; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Düsseldorf und Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hamburg, Hannover, München und Stuttgart; EUREX; Swiss Exchange 151646 Jul 04