euro adhoc: MVV Energie AG / Impairment test on investments produces only minor depreciation requirements (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

Mannheim, 24 September 2004. The impairment tests undertaken by MVV Energie and audited by the auditing company Deloitte with regard to the valuation of the investments and goodwill of MVV Energie based on IFRS have resulted in only minor depreciation requirements. The report published today requires a total amount of Euro three million to be written down.

The scale of the required write-downs is attributable to the fact that a total of Euro 39 million has already been written down in the years following the company’s purchase of large shareholdings in municipal utility companies in Offenbach, Solingen and Ingolstadt within the framework of scheduled amortisation of goodwill in line with IFRS. The capitalised earnings value determined in this report therefore corresponds very closely to the remaining book values.

On the basis of this report, MVV Energie does not at present expect any further write-downs to be required on the investments held by the Group. The impairment tests and the commissioning of Deloitte to audit such tests were initiated by the Executive Board of MVV Energie in order to determine the ongoing value of the investments at an early stage in view of the forthcoming annual financial statements as of 30 September 2004.

At Euro 53 million, the one-off restructuring expenses incurred by the MVV Energie Group in focusing on its core businesses of district heating, electricity, gas, water, thermal refuse recycling and energy services relating to its core business are almost exactly in line with the estimated figure of Euro 52 million communicated in advance. All expenses incurred in this context are therefore covered.

The preliminary figures relating to the 2003/04 annual accounts and an outlook for the coming financial year will be published on 1 December 2004.

Contact: MVV Energie AG Investor Relations
Tel. +49(0)621-290-3708 E-Mail:

Further inquiry note:
Frank Nagel
Tel.: +49(0)621-290-2692
Tel: +49(0)6212900
FAX: +49(0)621290 2324

Emittent: MVV Energie AG Luisenring 49 DE-68159 Mannheim Tel: +49(0)6212900 FAX: +49(0)621290 2324 Email: WWW: ISIN: DE0007255903 WKN: 725590

end of announcement euro adhoc

Indizes: CDAX, Classic All Share, Prime All Share, Prime Standard, SDAX
Börsen: official dealing Baden-Württembergische Wertpapierbörse, Frankfurter Wertpapierbörse; free trade Berliner Wertpapierbörse, Bayerische Börse, Hamburger Wertpapierbörse, Börse Düsseldorf Branche: Energy
Sprache: Englisch