Ad hoc announcement EVN AG / Keyword(s): Capital Increase/Capital Increase EVN AG: EVN resolves on capital increase Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA, UNITED KINGDOM, JAPAN OR AUSTRALIA October 27, 2010 >Capital increase of 16,352,582 new shares with a subscription ratio of 10:1 >Pre-placement to international investors >Proceeds will be used to strengthen balance sheet by increasing issued equity and thereby supporting credit rating, as well as for investments in renewable energy projects in Lower Austria and the expansion of hydro power energy capacities in other regions of Austria and in neighbouring countries With the Supervisory Board's approval, the Managing Board of EVN AG has resolved on a capital increase from authorized capital through the issuance of 16,352,582 new ordinary no-par value bearer shares. This capital increase will increase the share capital of EVN AG from EUR 300,000,000 by 10% to EUR 330,000,000. The subscription ratio will be 10:1, which means the existing shareholders will be entitled to subscribe for one new share for every ten outstanding shares held. The subscription period for the new shares is expected to start on October 29, 2010 and end on November 12, 2010. All new shares, for which subscription rights have not been exercised or which have not been subscribed by eligible employees of EVN Group will be pre-offered to institutional investors also outside of Austria. This pre-placement begins with immediate effect still today, October 27, 2010 and will terminate before the beginning of the subscription period. EnBW Energie Baden-Württemberg AG as significant shareholder of EVN AG has irrevocably undertaken towards the company neither to exercise nor to transfer to third parties any of its subscription rights relating to the new shares, provided that the subscription price for the new shares will be fixed with EUR 10.50 or higher. The majority shareholder NÖ Landes-Beteiligungsholding GmbH with a shareholding of currently 51% will fully exercise its subscription rights and subscribe 51% of the new shares. The subsciption price as well as the offer price for the pre-placement is expected to be fixed by resolution of the board of management with the consent of the supervisory board and in coordination with the syndicate of banks based on the results of the bookbuiliding process for the pre-placement on October 28, 2010. The subscription price at which the new shares are offered to the shareholders in connection with their subscription rights will be equal to offer price and is expected to be announced on October 28, 2010. The first trading day in the new shares on the Vienna Stock Exchange is expected to be November 2, 2010. The new shares carry full dividend rights from and including the fiscal year 2009/10. The proceeds from the capital increase primarily benefits EVN Group's balance sheet and thereby supporting EVN Group's credit rating. In addition, the proceeds will be used to finance projects for the expansion of renewable energy capacities in Lower Austria in the form of further hydro power plants and wind parks as well as the expansion of hydro power capacities in other regions of Austria and in neighbouring countries. The prospectus intended to support the offer to the shareholders in connection with their subscription rights and the offer to the eligible employees of EVN Group is still subject to the approval by the Austrian Financial Market Authority. This approval is expected to take place on, October 28, 2010. Deutsche Bank Aktiengesellschaft and Raiffeisen Centrobank AG are acting as Joint Bookrunners and Joint Lead Managers in the offering. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: Legal Disclaimer: This ad-hoc announcement serves marketing purposes in Austria and constitutes neither an offer to sell nor a solicitation to buy any securities of EVN AG. A public offer may only be made in Austria after publication of a prospectus prepared in accordance with the provisions of the Austrian Capital Markets Act. Any securities orders received prior to the commencement of a public offer will be rejected. If a public offer is made in Austria, a prospectus prepared in accordance with the Austrian Capital Markets Act will be published at the homepage of the company under www.evn.at and will be available free of charge at EVN AG (EVN Platz, A-2344 Maria Enzersdorf, Austria). Any offer of securities of EVN AG in Austria will be made solely by means and on the basis of the published prospectus. This ad-hoc announcement is not for distribution in or into the United States of America and must not be distributed to U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended ('Securities Act')) or publications with a general circulation in the United States. This press release does not constitute an offer or invitation to purchase any securities in the United States. The securities of EVN AG have not been registered under the Securities Act and may not be offered, sold or delivered within the United States or to U.S. persons absent registration under or an applicable exemption from the registration requirements of the United States securities laws. There will be no public offer of securities of EVN AG in the United States. This press release is directed only at persons (i) who are outside the United Kingdom or (ii) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the 'Order') or (iii) who fall within Article 49(2)(a) to (d) ('high net worth companies, unincorporated associations etc.') of the Order (all such persons together being referred to as 'Relevant Persons'). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. EVN AG Corporate Communications EVN Konzern Stefan Zach EVN Platz A-2344 Maria Enzersdorf Tel.: +43 2236 200-122 94 Fax: +43 2236 200-822 94 Mobil: +43 676 810 32 294 stefan.zach@evn.at www.evn.at 27.10.2010 DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: EVN AG EVN Platz 2344 Maria Enzersdorf Österreich Phone: +43-2236-200-12294 Fax: +43-2236-200-82294 E-mail: info@evn.at Internet: www.evn.at ISIN: AT0000741053 WKN: 074105 Indices: ATX Listed: Foreign Exchange(s) Wien (Amtlicher Handel / Official Market) End of Announcement DGAP News-Service ---------------------------------------------------------------------------