Kauno Energija AB - Other information

A Memorandum on Cogeneration power plant in Petrašiūnai was signed by AB Kauno energija and Lietuvos energija, AB

Executives of AB Kauno energija and Lietuvos energija, AB signed a Memorandum
of intent in developing Construction Project of a Cogeneration power plant in
Petrašiūnai today. 

Memorandum was signed considering constant growing of heating prices in Kaunas
city and the work that has been done on the matter before the signing of the
memorandum. The Project is going to be developed on purpose to ensure the lower
price of heating for consumers in Kaunas as soon as possible. 

After signing the Memorandum, AB Kauno energija and Lietuvos energija, AB are
going to work on a mutually acceptable agreement of a joint development of the
project and subsequent action plan. There is also a plan to sign a
shareholders' agreement which will define the model of cooperation between the
companies and to establish a joint company for the development of the Project.
It is expected that the agreements will be settled until the middle of this
year. 

It is expected that AB Kauno energija give a permission to exploit existing
infrastructure building Cogeneration power plant. Whereas Lietuvos energija, AB
will keep the realization of the Project by its own finances or on loans. 






         Ūdrys Staselka
         Phone +370 305 885