Vattenfall and Mirant agree on roles for the New Force

Vattenfall and Mirant agree on roles for the New Force In a joint statement, Vattenfall and the American energy company Mirant have defined their roles as the formative shareholders of the New Force on the German electricity market. Vattenfall and Mirant in close co-operation will lead the integration process between the German companies HEW, Bewag, VEAG and Laubag. The two companies, which together with the Free and Hanseatic City of Hamburg will be the main owners of the "New Force" on the German energy market, are highly conscious of their roles as formative shareholders and will bring their considerable experience in the energy field to bear in the new corporate group that will be formed. "Mirant and Vattenfall share the same vision: Together we want to create a leading German energy company. The companies HEW, Bewag, VEAG and Laubag have established a sound basis for this - each of these companies is successful on the market and they have begun the process of mutual integration", explained Vattenfall's President and CEO Lars G. Josefsson on Wednesday (27 June 2001) to journalists in Berlin. "Vattenfall and Mirant can achieve more in partnership than they could separately. If we join forces, we will be more successful in creating the New Force from the four companies HEW, Bewag, VEAG and Laubag, to the commercial advantage of all those involved, and in forming a company that can meet the competition and offer job security to its employees," said Barney Rush, President of Mirant Europe. Vattenfall and Mirant agree that the New Force project can be completed as early as the end of 2002. "This presupposes complete acceptance on the part of all those involved and a firm belief in the shared vision", confirmed Lars Josefsson and Barney Rush. In the current project plan, the New Force is expected to begin acting as an independent unit on the German energy market no later than 31 July 2003. Vattenfall is the majority shareholder in Hamburgische Electricitäts-Werke AG (HEW). There Vattenfall has been co-operating closely with the Free and Hanseatic City of Hamburg since 1999. The City will now be involved in the development of the New Force together with Vattenfall. Mirant owns approximately 45 per cent of the shares of Bewag in Berlin. Berlin, 27 June 2001. From Vattenfall's press Office, tel: 08-739 50 10 For further information, please contact: Knut Leman, Senior Vice President, Corporate Communications, Vattenfall, telephone +46 8 739 50 31, mobile +46 70539 50 01. Vattenfall's vision is to be a leading European energy company. The Nordic region, Poland and Germany are its domestic markets. Today, Vattenfall generates power and supplies energy solutions to 2.2 million customers in the Nordic region and northern Europe. The largest electricity customers are industrial plants and energy companies. Vattenfall's main products are electricity, heat and natural gas, as well as network, consulting and maintenance services. Vattenfall's net sales in 2000 amounted to almost SEK 32 billion. Sales included 83 TWh electricity and 17 TWh heat. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/06/27/20040817BIT21550/wkr0001.pdf