For legal reasons we are not able to publish this research report in the internet. Please ask the issuing bank for a copy.

For legal reasons we are not able to publish this research report in the internet. Please ask the issuing bank for a copy.

For legal reasons we are not able to publish this research report in the internet. Please ask the issuing bank for a copy.

For legal reasons we are not able to publish this research report in the internet. Please ask the issuing bank for a copy.

For legal reasons we are not able to publish this research report in the internet. Please ask the issuing bank for a copy.

"At present, utility stocks are significantly undervalued.

Consequently, we see substantial potential for increasing share prices for utility stocks as we consider exaggerated the current drops in share prices in this sector - despite an extremely cautious scenario with respect to opting out of nuclear energy and developments in power rates. It should be possible to achieve such increases in light of easing pressure on electric power rates and further concentration of the market.

Against a background of current developments in the market, the shares of Bewag and MVV appear to us to be of particular interest at this time. These have remained extremely underdeveloped not only as a result of the trend in this sector, but also due to problems in the power-generation sector. In contrast to distribution utilities, these power-generation enterprises have not numbered among the winners of liberalisation until now, as the intensity of competition has been highest in this sector.

With MVV's shares, we see potential for an increase of 14 % (based on the current price of Euro 15.40 at today's deadline). This increase in turn is based on the excellent positioning in MVV's various business divisions as well as the high proportion of sales from markets with relatively low-intensity competition. Additional potential results from MVV's growth strategy. Here, the focus is on expanding its value-added energy services business. Moreover, the marketability of Powerline services should ideally complement its existing telecommunications business. This will generate additional value."

(German Research Bank Julius Bär (Deutschland ) AG, 3/2000)