Ad-hoc-Announcement Quarter Results Österreichische Elektrizitätswirtschafts AG: Verbund continues growth development in quarters 1-3/2007 Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ Despite the prevailing difficult framework conditions, Verbund, Austria's leading electricity company, is nonetheless able to present an improved result for quarters 1-3/2007. Sales revenue rose by 5.8 % to 2,256.6 million €, the operating result improved by 6.1 % to 685.1 million € and the group result rose by 11.5 % to 457.9 million €. Control relevant key figures developed as follows: The EBIT margin increased from 30.3 % to 30.4 %, the EBITDA margin, at 36.4 %, remained very high; the net gearing, as a result of borrowing activities to finance foreign business, rose from 70.4 % to 86.8 %. The operating cash flow, mainly as a result of higher income tax payments on earnings, dropped by 24.2 % to 512.6 million €. Ratios Unit Q1-3/2006 Q1-3/2007 Change Sales Revenue € million 2,128.2 2,252.6 5.8 % Operating Result € million 645.9 685.1 6.1 % Group Result € million 410.5 457.9 11.5 % Net Gearing % 70.4 86.8 -23.3 % Operating Cash-flow € million 676.5 512.6 -24.2 % Hedging strategy secures higher selling prices The prices for day-ahead supplies on the German electricity exchange EEX in quarters 1-3/2007 came to an average of € 31.3/MWh for base load and were therefore more than 40 % down on the values recorded in the corresponding period the previous year. The prices for peak load dropped by almost 42 %. This is attributable mainly to the sustained decline in the prices of CO2 emission rights. Despite the weak spot market prices in quarters 1-3/2007, Verbund was able to increase the average selling price as a result of its proven hedging strategy – approx. 60 % of the generated electricity was already sold in 2006 at high forward prices for 2007. Water supply below the long-term average The average water supply of the rivers, which is measured with a hydro coefficient, continues to lie below the long-term average. Although the hydro coefficient in September was more than 20 % above the long-term average, following the strong decline in generation in the months of April to August, the hydro coefficient for quarters 1-3/2007, at 0.91, still remains 7 percentage points below the value reported in the corresponding period last year. End customer business expanded On 16 August 2007, the buyback of electricity distribution company Austrian Power Vertriebs GmbH (APC) from Slovene energy group Istrabenz took place. By repurchasing the company, Verbund was able to acquire an additional 100 key accounts and further expand its end customer business. Expansion of Gerlos II power plant now completed Full operation of the new 135 MW Pelton machine unit at Gerlos power plant commenced on 01 October 2007. The new plant has tripled the output of the Gerlos hydropower plant, namely, from 65 MW to 200 MW. Founding of VERBUND-Austrian Renewable Power (ARP) The new subsidiary, VERBUND-Austrian Renewable Power (ARP), was founded on 19 September 2007. The company aims to create new generation capacities with an output of up to 400 MW in Austria and abroad by 2015 using wind power, small-scale hydropower, solar power or biomass. LNG Terminal Project in France In quarter 3/2007, Verbund participated with 24.5 % in a large-scale project regarding to an LNG (liquid natural gas) terminal including a regasification plant near Le Havre-Antifer. With that, Verbund has secured the rights in a third of the capacities of the terminal, corresponding to an annual volume of approx. 3 billion m3 of gas. Positive outlook for 2007 Despite an unfavorable market environment, we stand by our ambitious goals for fiscal 2007, provided that an average water supply for the remainder of the year is given, and aim to achieve a 10 % improvement in the operating result and a 15 % increase in the group result as compared with 2006. Detailed information of the results of quarters 1-3/2007 can be found at www.verbund.at. You will also find a user-friendly version of the interim report online. Contact: Mag. 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 23.10.2007 --------------------------------------------------------------------------- Language: English Issuer: Österreichische Elektrizitätswirtschafts AG Am Hof 6A 1010 Wien Österreich 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: Amtlicher Markt in Wien, Frankfurt (General Standard); Freiverkehr in Berlin, Stuttgart, München End of News DGAP News-Service ---------------------------------------------------------------------------