Vattenfall continues to build "Neue Kraft" in Germany

Vattenfall continues to build "Neue Kraft" in Germany Despite the fact that the co-operation with Mirant has been discontinued, Vattenfall is to continue the formation of "Neue Kraft" on the German energy market together with the City of Hamburg. The Berlin company Bewag will not be involved in the integration process as yet. At the second "Neue Kraft" shareholders' meeting, held Wednesday in Berlin, Mirant informed Vattenfall and the City of Hamburg, that they want to discontinue the partnership in building "Neue Kraft". The joint management of Bewag, which is stipulated in an agreement between HEW and Mirant, will continue. Vattenfall remains committed to Bewag. "The door will always remain open for Bewag to join the "Neue Kraft", said Vattenfall's President and CEO Lars G. Josefsson. Vattenfall remains convinced that the creation of "Neue Kraft" even without Bewag is an attractive concept, which has been developed in a natural way out of the upheavals on the German energy market. Vattenfall did not manage to reach agreement with Mirant on the continuation of the integration process. "In the light of the dynamic development of the German energy market it is clear that the formation of 'Neue Kraft' must not be further delayed. It must promptly position itself and enter into the competition for the customers," says Lars G. Josefsson. Vattenfall and the City of Hamburg will now immediately begin planning the realisation of "Neue Kraft" without the participation of Mirant. They do not discount the possibility that Bewag can once again become part of "Neue Kraft" at a later date. Vattenfall currently owns 73.8 per cent of HEW, which in turn owns 81.25 per cent of VEAG, 92.5 per cent of Laubag and approximately 45 per cent of Bewag. Mirant also has a 45 per cent holding in Bewag. Issued by Vattenfall's Press Office, telephone +46 8 739 50 10. For further information please contact: Karl-Erik Olsson, Press Director, Vattenfall, tel: 08-739 75 83, 070-538 81 38. Martin May, Vattenfall Deutschland GmbH, tel: +49-40-374722-14; +49-172-4291248. 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 several 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. The Group's net sales in 2001 are calculated to around SEK 70 billion. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/09/26/20040817BIT21710/wkr0001.pdf