Energijos Skirstymo Operatorius AB - Notification on material event

Regarding a public call for tenders to install of the LNG regasification station in Druskininkai

Energijos Skirstymo Operatorius AB (hereinafter – the Company), identification code 304151376, registered office placed at Aguonu str. 24, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by company is 894 630 333; ISIN code LT0000130023.

The Company informs that due to high prices it declined participants’ proposals in the public call, which was announced on 3^rd February, 2017 on Procurement Information System (CVPIS), for tenders to install of the LNG regasification station in Druskininkai.

The Company is currently considering various alternatives in order to create the necessary infrastructure and to take necessary measures to ensure the continuous, reliable and safe natural gas supply before the next heating season in Druskininkai.

On 29^th November, 2016 ESO acquired the natural gas distribution system of Druskininkai municipality, and since November 1, when the former gas supplier ceased operations, carries a guarantee gas supply activities.

Natural gas is supplied for 2.674 residential and 9 business clients in Druskininkai.