Energijos Skirstymo Operatorius AB - Notification on material event

Regarding the decision of the Board of Energijos Skirstymo Operatorius AB to reduce natural gas distribution prices from July 1, 2017.

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. 

With regard to diminishing operational costs due to efficiency gains, the Board
of the Company on May 19, 2017 determined to decrease natural gas distribution
prices to all customer groups. The average price will be cut by 5.7%. 

The new natural gas distribution prices which come into effect starting from
July 1, 2017 and the current natural gas distribution prices, which came into
effect from January 1, 2017 are as following (less of Value Added Tax): 

Distribut  Annual quantity of             Natural gas           Natural gas     
ion price   natural gas distributed   distribution price,   distribution price, 
 group      to the specific user      Eur/ MWh from July   Eur/ MWh from January
            (object)                        1, 2017               1, 2017       
--------------------------------------------------------------------------------
I          below 5200 kWh                   26,92                  28,59        
--------------------------------------------------------------------------------
II         from 5200 kWh to 207980           7,74                   8,21        
            kWh                                                                 
--------------------------------------------------------------------------------
III        from 207980 kWh to 1040           6,76                   7,17        
            MWh                                                                 
--------------------------------------------------------------------------------
IV         from 1040 MWh to 10399            6,10                   6,47        
            MWh                                                                 
--------------------------------------------------------------------------------
V          from 10399 MWh to 51995           5,17                   5,47        
            MWh                                                                 
--------------------------------------------------------------------------------
VI         from 51995 MWh to 155985          3,68                   3,89        
            MWh                                                                 
--------------------------------------------------------------------------------
VII        beyond 155985 MWh                 2,33                   2,46        
--------------------------------------------------------------------------------


The price established by the Board of the Company must be approved by the
National Control Commission for Prices and Energy and publicly disseminated
until June 1, 2017 (one month before it comes into effect). 


         Representative for Public Relations Martynas Burba, Tel. No (8~5) 251
4516.