Kauno Energija AB - Notification on material event

Prognoses for activity of the JSC “Kauno energija” at the 2010 year

JSC “Kauno energija” predictsnet profit in 2010, compared with the Company's
2009 net profit will be reduced by about 12.5 percent. In the 2009 consolidated
annual report submitted planned data (profit growth of 5 percent.) changes were
influenced by speculativeof customers'debtvaluation decrease. 

Estimatedsales volume, compared with the company's sales volume in 2009 will be
about 9 percent higher. The increase of this volume was influenced by the lower
outdoor temperature in December and the higher heat price (in December 2010
heat price, compared with January 2010, was 22 percent higher). 

In 2010, the company has implemented the following projects mentioned in 2009
Consolidated Annual Report: (i) Renewal of Kaunas city heat supply networks by
implementing modern technologies (reconstruction of heat supply networks at V.
Krėvės ave. 82A...118H, Kaunas) unique No. 1997-2035-2018, the second stage.
The total amount of investments is LTL 12,63 million, the EU's financial
support contracted for LTL 5,99 million; (ii) Development of district heating
by building a new heat route (heat supply networks from A. Juozapavičiaus ave.
23A up to A. Juozapavičiaus ave. 90). The total amount of investments is LTL
3.08 million, financial support expected from the EU amounts to LTL 1.43
million; 


         Person for contacts: Head of Asset Management Department Jovita
Sereikiene,+370 37 305664.