Birka Energi acquires energy company in Katrineholm

Birka Energi acquires energy company in Katrineholm Katrineholm Municipality and Birka Energi AB have agreed on a transfer of shares in Katrineholms Energiförsäljning AB and Julita Energi AB with a total of 19,000 customers and electricity sales of 305 GWh. The total purchase price for the shares is SEK 24.5 million. Katrineholms Energiförsäljning AB is a fully owned subsidiary of Katrineholms Energi AB, of which Birka Energi owns 49%. In addition to energy sales, Katrineholm Energi is also involved in electricity mains supply, district heating and city networks (IT communications). - The transfer of the sales company is a natural development of our successful cooperation with Birka Energi, says Marita Bengtsson, Chair of Katrineholm Municipality Executive Committee and of Katrineholm Energi AB board of directors. The deregulation of the electricity market means that sales activity must concentrate on aggressive marketing, IT systems and product development, which in turn requires a level of capital investment which neither can be nor should be a municipal responsibility. Birka Energi is one of Scandinavia's largest energy companies with approx. 840,000 customers, electricity sales of 27 TWh, heating sales of 8 TWh and a turnover of approx. SEK 13 billion. The city of Stockholm and Fortum abp each own 50% of Birka Energi. For further information contact: Marita Bengtsson, Chair of Katrineholm Municipality Executive, tel. +46 150 57000 Gösta Lindh, Deputy CEO, Birka Energi AB, tel. +46 8 671 79 33 Merril Boman, Vice president communications, Birka Energi AB, tel. +46 8 671 79 51 or +46 70 590 79 75 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/11/18/19991118BIT00290/bit0001.doc http://www.bit.se/bitonline/1999/11/18/19991118BIT00290/bit0002.pdf