Orkuveita Reykjavíkur - Company Announcement

Preparations for Unbundling of Reykjavik Energy’s Operations

Reykjavik, 2013-11-13 08:56 CET (GLOBE NEWSWIRE) -- Reykjavik Energy‘s Board of
Directors has commissioned the CEO to prepare motions regarding the unbundling
of RE‘s operations, as instructed by amendments to law 65/2003 that come to
effect January 1st 2014. The motions are based on unanimous conclusions reached
by the Company's owners; The City of Reykjavik and the municipalities of
Akranes and Borgarbyggd. 

These entail that the current partnership of Reykjavik Energy (Orkuveita
Reykjavikur) will be a holding company for subsidiaries, each of which will be
responsible for its sector of operations; municipalities' obligatory
operations, licensed operations and competitive operations. The holding
company's type of entity remains the same, thus the unbundling does not affect
its rights, obligations nor owners' liabilities. 

Changes to law governing Reykjavik Energy will be proposed in a bill prepared
by the government of Iceland. The motion is, among other things, intended to
ensure that the Company's unbundling will not, by itself, confer taxing that
otherwise would not fall on the Company. The unbundling will be presented in
more detail when formal decisions have been made.