LESTO - Notification on material event

Regarding LESTO investment plan for 2015-2025

Over the coming decade, the electricity power distribution company LESTO, which
is part of the state-owned energy group Lietuvos Energija, plans to carry out
substantial modernization of its distribution network. Seeking to ensure
reliable, safe and smartly managed services, the company intends to invest 1.7
billion euros into the modernization and renewal of the network by 2025. 

The company plans to make the largest investment - 511 million euros- into
making the network more resistant to climatic phenomena. Thus, overhead lines
will be replaced by subterranean or isolated overhead lines. It is planned to
increase the number of such lines from 25% to 40% or build 18 thousand
kilometers of underground and isolated lines over the next 11 years. 

It is intended to invest 426 million euros into the “Safe and reliable network”
program. In the course of the program, unsafe transformers, cable lines and
distribution facilities will be replaced by modern equipment corresponding to
current standards. 

Finally, it is planned to invest 132 million euros towards the improvement of
the power voltage quality. This will resolve the problem of inferior voltage
for 41,000 users by fixing almost 9,100 km of lines affected by drops in
voltage. 

LESTO intends to invest 34 million euros into the smart network projects. By
2025, it is planned to implement 7 projects, including the pilot projects of
network automation and smart meters, introduction of a single control center
and distribution network control system. 

The remaining investments will be allocated to the connection of new users, IT
systems upgrade and other measures. 

LESTO aims to make the investments gradually, so as to minimize the effect on
electricity rates.  Investments will have a positive impact on the national
economy. The company plans to finance the investments using funds collected
from power distribution activities and long term credits. 

Most of LESTO's electric power facilities were constructed in 1960-1980, during
the electrification of Lithuania, when most of the lines and transformers were
installed. 

More information:

 LESTO investment plan for 2015-2025




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