Lietuvos energijos gamyba, AB - Notification on material event

On adopted Resolution of the Court

Elektrėnai, Lithuania, 2016-10-18 08:59 CEST (GLOBE NEWSWIRE) -- Lietuvos
Energijos Gamyba, AB, company code 302648707, registered office at Elektrinės
st. 21, Elektrėnai (hereinafter referred to as the Company). The total number
of registered ordinary shares issued by company is 635 083 615, ISIN code –
LT0000128571. 

Please be advised that on the 17 October 2016 the Supreme administrative court
of Lithuania (hereinafter – SACL) announced the decision regarding the appeal
of administrative case, which was investigated by the court on the 7th of
September 2016 regarding overruling of the judgement made by Vilnius regional
administrative court on the 30 of April 2015 and adopting a new verdict. 

The Company's appeal was accepted, i.e. SACL adopted the resolution to dismiss
Vilnius regional administrative court decision dated 30 April, 2015 and adopted
the new decision in the case – accepted the Company’s appeal and dismissed the
resolution of the National Commission for Energy Control and Prices “On the
results of electricity generation market inquiry”, dated 7 August, 2014, No
O3-757 (provisions No. 1.1, 1.2, 1.4, 1.5, 1.6, 1.7, 1.9, 1.13, 3 and 4). The
SACL decision is final and not subject to appeal. 

The above mentioned resolution of the National Commission for Energy Control
and Prices declared the Company as an undertaking having significant market
power in electricity generation market. Because of the latter resolution the
Company was allocated a reduced amount of funds for public service obligation
(PSO) for the years 2015 - 2016. During the period from application of the
resolution (1 January 2015) till 30 June 2016 the total amount of 15.3 million
EUR of PSO funds was not recognized as revenue in the Company’s statement of
comprehensive income 


         Valentas Neviera, Head of Corporate Communication Division, tel. +370
670 25997, e-mail. valentas.neviera@le.lt