Lietuvos Energija AB - Notification on material event

Performance of Lietuvos Energija AB for the first half-year of 2009

Preliminary operating consolidated unaudited results of Lietuvos Energija AB
group of companies for the first half-year of 2009 are as follows: 

- income - LTL 827.4 million (EUR 239.6 million) (first half-year of 2008: LTL
677.1 million (EUR 196.1 million)); 
- loss before taxes - LTL 31.3 million (EUR 9.1 million) (first half-year of
2008: profit before taxes - LTL 60.2 million (EUR 17.4 million)); 
- net loss - LTL 26.4 million (EUR 7.6 million) (first half-year of 2008: net
profit - LTL 50.7 million (EUR 14.7 million)). 
The respective comparative period of 2008 has been revised due to the changed
principle of cost accounting regarding public service obligations, which
provides for a different redistribution of costs in the course of the year with
regard to seasonality. 
The increase in income of Lietuvos Energija AB group of companies during the
first half-year of 2009 was caused by increased prices for public service
obligations (PSO) and a higher volume of trade in additional electricity due to
unplanned repairs performed in Ignalina Nuclear Power Plant in June.  These
factors had no influence on the profit of Lietuvos Energija AB, since the
company recorded a respective increase in the costs of PSO and purchase of
additional electricity. 
A decrease in profit was mainly determined by a reduction of accounting value
of non-current tangible and intangible assets to its fair value, having
evaluated the fall of construction prices. The profit also decreased following
a considerable decline in electricity consumption in the first half-year of
2009, and an increase in depreciation and amortization costs. 
Over the first half-year, acting as a transmission system operator, Lietuvos
Energija AB transmitted 4.63 billion kWh of electricity within the country. The
company exported 1.64 billion kWh of electricity in the given period. 

Financial controller 
Financial planning and treasury Division
Rimantas Sukys, +370 5 2782315