LESTO AB - Notification on material event

Preliminary unaudited operating results of LESTO AB company group for six months of 2012

LESTO results improved due to better economic situation, more effective
management and investment to network 

Vilnius, Lithuania, 2012-08-31 15:30 CEST (GLOBE NEWSWIRE) -- LESTO results
improved due to better economic situation, more effective management and
investment to network 

Distribution network operator LESTO AB group's EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) was 201.1 million LTL during
the first half of 2012 which is 7.5 % more than last year during the same
period. Improvement of economic situation influenced growth of LESTO group
income. It increased by 1.65 % up to 1.156 billion LTL. Net loss appears due to
peculiarities of regulation. 

LESTO consolidated net loss during the first half of 2012 was 14.3 million LTL
when during the same period last year net loss combined 26 million LTL. The
reason why group faces net loss is peculiarities of regulation. Depreciation
and amortization costs in financial statements are higher than those which are
put in distribution tariffs and set by regulator. 

“LESTO operates more effectively and more profitable in 2012 than last year.
EBITDA profit during the first half of 2012 was 17.39 % when last year during
the same period it combines 16.44 %. Negative net result is caused by
peculiarities of regulation”, - states Arvydas Tarasevičius, CEO of LESTO AB. 

During the first half the amount of electricity received to the distribution
network was 4,401 million kWh, it was 2.42 % more than last year. Although the
amount of electricity increased, technological losses in the distribution
network decreased by 13.5 % until 321 million kWh which combines 7.3 %
electricity received. Last year during the same period it combined 8.6 %. 

“Purposeful investment causes less loss in the network, better quality of
electricity supply for our customers. During the first half of 2012 regardless
of the influence of natural disasters (“force majeure”) the system average
interruption duration index (SAIDI) per customer was equal to 33.7 minutes
which is almost 18 % better than last year. During the improvement of economic
situation consumption of electricity increases too. That shows higher volume of
network service and growing LESTO income”, - states A. Tarasevičius. 

Investment to the future

In the first six month of 2012, LESTO investments in electricity network
reached 130.8 million LTL. It was 21.6 % more compared to the investment in the
first half of 2011. The highest amount of investment was dedicated to
connection of new costumers, those investment increased by 46.1 % up to 83.1
million LTL. 

“Due to better economic situation not only the consumption of electric energy
increases but the amount of new customers too. The new objects are connected by
companies and by private customers. It will increase the consumption of
electricity and improve LESTO results. Large amount of works determines
renewable energy development in Lithuania”, - states A. Tarasevičius. 

During the reporting period 415 kilometers of underground (cable) lines were
laid. Cable lines significantly reduce the number of failures during the
operation, their maintenance is less expensive. Moreover having changed the
airlines to the cables the landscape becomes more attractive. 

LESTO's long-term strategy for the year 2012-2020 projects company's aspiration
to be effective, to use resources optimally, to serve customer's needs, and act
as company that shares society's trust. The company shall strive to increase
its value by increasing efficiency in customer services, creating a modern
organizational culture, applying up to date management methods, increasing
efficiency in business processes, reducing loss in an electrical grid, ensuring
connection of new customers and reliability of grid functioning. 

Ernestas Naprys
LESTO AB Representative for Public Relations
Tel. +370 5 251 4516
ernestas.naprys@lesto.lt
www.lesto.lt


This notice is deemed non-confidential

Finance department, Artūras Paipolas





         Representative for Public Relations Ernestas Naprys, Tel. No (8~5) 251
4516.

Attachments:

Financial_statements_ENG.pdf

Report_2012_I_half_ENG.pdf

Responsible_ENG.pdf