Even when adjusted, MVV Energie AG has succeeded in raising its earnings before interest and taxes (EBIT) 15% in the 1st & 2nd quarters of fiscal year 2002/03 - High investments in renewable energy - Equity to total capital ratio increased to 30%

In the first six months of fiscal year 2002/03 (1/10/2002-31/3/2003) the successful sale of our shares in Gasversorgung Süddeutschland (GVS) has doubled earnings before interest and taxes (EBIT) at MVV Energie AG in Mannheim, an energy-distribution utility and value-added services provider with Europe-wide business activities, from Euro 107 million to Euro 232 million. However, even without the one-off factors in conjunction with the GVS sale, MVV Energie AG was still able to increase its EBIT for this period by 15 percent from Euro 91 million to Euro 105 million. Roland Hartung, CEO MVV Energie AG, which is publicly listed on the SDAX, emphasised in presenting the figures for the first two quarters at a press conference in Mannheim on Wednesday "that MVV Energie AG has thus succeeded in surpassing once again its record results of last year, thereby consistently continuing its national and international course towards greater growth, even in the face of heavy investments, especially in renewable energy."

From October 2002 until March 2003, MVV Energie AG's sales rose by 4 percent from Euro 940 million to Euro 976 million. In the same period, foreign sales went up 43 percent to Euro 107 million. Net earnings after taxes for this period after deducting minority interests adjusted for one-off factors in conjunction with the GVS sale increased 6 percent from Euro 35 million to Euro 37 million. Earnings per share in accordance with IAS 33 increased accordingly from Euro 0.70 to Euro 0.74. At the end of March 2003, the number of people employed by the MVV Energie Group was 5733 compared to 5086 last year.

Key Economic Indicators on Developments in Business

MVV Energie Group1 In Euro Mill.	2002/2003 1/10-31/3	2001/2002 1/10-31/3	+/- %
Sales	976	940	+4
EBITDA	294	160	+84
EBITA	239	112	+113
EBIT	232	107	+117
EBT	205	88	+133
Net earnings after taxes for this period	174	56	+211
Net earnings after taxes for this period after deducting minority interests	169	48	+252
Earnings per share2 in Euro	3.33	0.94	+254
Cash flow in accordance with DVFA/SG	105	103	+2
Total assets	2 769	2 693	+3
Equity	821	692	+19

Adjusted Key Economic Indicators on Developments in Business

MVV Energie Group1 In Euro Mill.	Adjusted 3 2002/2003 1/10-31/3	Adjusted 3 2001/2002 1/10-31/3	+/- %
EBITDA	166	144	+15
EBITA	111	96	+16
EBIT (Adjusted)	105	91	+15
EBT	77	71	+8
Net earnings after taxes for this period4	43	44	-2
Net earnings after taxes for this period after deducting minority interests4	37	35	+6
Earnings per share2,4 in Euro	0.74	0.70	+6

1	In accordance with IAS/IFRS
2	In accordance with IAS 33
3	Without the proceeds from the sale of GVS shares and net income from GVS as a participation as well as measures to enhance MVV Energie AG's competitiveness
4	Adjusted for accounting tax factors from measures to enhance MVV Energie AG's competitiveness during the fiscal year reported here and from the net income from GVS as a participation last year

GVS Sale Ensures Freedom of Action After deduction of the book value, the sale of its participation in GVS led to a profit of Euro 140 million for MVV Energie AG; including the dividends for fiscal year 2002/03, this profit improved to Euro 141 million compared to Euro 16 million in income from GVS as a participation last year. This balances out to total positive one-off factor of Euro 125 million. MVV's CEO Roland Hartung: "We have achieved an excellent profit for the sale of our GVS shares, which we have used for measures to provide sustainable strengthening for our competitiveness as previously announced on the one hand and with which we have raised our ratio of equity to total capital by reducing our corporate debt. In this way, we have been able to broaden our radius for freedom of action for current investments as well as for new participations in Germany and abroad." MVV Energie AG has thus created provisions for obligations in conjunction with taking over the work force from the Mannheim central powerplant (GKM) currently employed at our energy from waste plant in Mannheim and for restructuring the technical divisions at our subsidiary, Energieversorgung Offenbach AG (EVO), amounting to Euro 7 million, respectively. Roland Hartung: "With these two measures, which would not have been feasible in this form and at this time without the proceeds from the GVS sale, we will be able to achieve significant cost cuts by 2004/05 at the latest. At the same time, we have succeeded in raising our ratio of equity to total capital to 30 percent with the aid of the proceeds from the GVS sale." Adjusted EBIT for the 1st & 2nd Quarters of 2002/03 In Euro Mill. 2002/2003 1/10-31/3 2001/2002 1/10-31/3 EBIT of the MVV Energie Group (unadjusted) 232 107 - Proceeds from the sale of GVS shares (after deducting    the book value and transaction costs) -140 - - Net income from GVS as a participation -1 -16 + Measures to enhance competitiveness +14 -1 EBIT (adjusted) 105 91 Results of 2nd Quarter Slightly below Last Year's Level In the 2nd quarter of fiscal year 2002/03, EBIT adjusted for one-off factors was lower at Euro 58 million than for the same period last year (Euro 63 million). Lower earnings at Energieversorgung Offenbach AG due to charges for a damaged turbine are reflected therein as well as investments accruing for construction measures for renewable energy. Roland Hartung: "The focus of our activities is currently concentrated on various international projects involving wind energy as well as on construction of three biomass powerplants in Mannheim, Flörsheim-Wicker near Wiesbaden and in Königs Wusterhausen near Berlin, all of which will begin operation in this calendar year and which will thus make us the market leader in this sector in Germany. MVV Energie AG intends to take consistent advantage of its opportunities in renewable energy." Developments in Sales by Quarter Developments in EBIT by Quarter (Adjusted for GVS & Measures to Enhance Competitiveness) Earnings Forecast Reiterated: A Plus of 5 percent Despite the ongoing weak, economic climate, MVV Energie AG has reiterated its earnings forecast for the entire fiscal year. Roland Hartung: "We expect EBIT to grow by 5% - but without taking the GVS proceeds and the measures to enhance competitiveness into account - compared to the results of last year that have been adjusted for all of the GVS proceeds. That we can succeed in achieving such an increase during a period of heavy investments and integration of new participations is proof of our profitability and of the success of our national and international growth strategy." Positive Developments in All Divisions In our electric power division in the past six months, MVV Energie AG has succeeded in increasing sales by 34 percent compared to last year in its retail business with residential, industrial and commercial customers. During the same period, the trading volume on power-wholesaling markets decreased due to the withdrawal of several international trading companies from the market. The volume traded by MVV Energie AG also dropped for the same reason. Nevertheless, at 8.4 billion kWh, it has remained at a high level. Developments in EBIT by Quarter 1st & 2nd Quarters In Euro Mill. 2002/2003 1/10-31/3 2001/2002 1/10-31/3 +/- % Power1 497 522 -5 Heating 177 143 +24 Gas2 165 154 +7 Water 35 31 +13 Energy from waste plants (MHKW) 46 47 -2 Multi-utility services 50 40 +25 Renewable energy - - - Other 6 3 +100         Totals 976 940 +4   1 Including Euro 36 million for the electricity tax (Euro 24 million last year)   2 Including Euro 17 million for the gas tax (Euro 14 million last year) In the electric power division, EBIT sank Euro 3 million compared to last year due to the measures to enhance our competitiveness and to a damaged turbine at the energy from waste plant in Offenbach. Developments in Volume by Division 1st & 2nd Quarters 2002/2003 1/10-31/3 2001/2002 1/10-31/3 +/- % Power1 in Mill. kWh 13 100 15 777 -17     thereof power trading 8 358 12 350 - 32     thereof other power volume 4 742 3 427 +38 Heating2 in Mill. kWh 7 341 5 001 +47 Gas1 in Mill. kWh 5 983 5 583 +7 Water1 in Mill. m3 19.5 18.5 +5 Incinerated waste in 1000 tonnes 234 244 -4 1 Total volume from all divisions 2 Subsequent corrections in volume last year Developments in EBIT by Division 1st & 2nd Quarters In Euro Mill. 2002/2003 1/10-31/3 2001/2002 1/10-31/3 +/- % Power 11 14 -21 Heating 48 42 +14 Gas 166 32 +419 Water 4 3 +33 Energy from waste plants (MHKW) 9 21 -57 Multi-utility services -3 -4 +25 Renewable energy -4 - - Other 1 -1 -         Totals 232 107 +117 Our corporate groups in the Czech Republic (Euro 73 million) and in Poland (Euro 31 million) accounted for 59 percent of total heating sales over the last six months. On the national district-heating market, MVV Energie AG's sales grew 1 percent in the 1st and 2nd quarters of fiscal year 2002/03. Earnings before interest and taxes (EBIT) in our district-heating division rose Euro 6 million compared to the same period last year. In our gas business, growth in sales (+ 7 percent is mainly attributable to weather- and consolidation-related increases in volume. Part of this increase also stemmed from competitively regaining a major industrial key account. High EBIT in our gas division for the 1st and 2nd quarters of 2002/03 primarily resulted from the one-off proceeds from the sale of our GVS shares. Without taking into account all of the proceeds from the sale of our GVS shares in the fiscal year reported here and last year and without the one-off factors from consolidation of the Solingen and Ingolstadt public utilities for the whole year for the first time, EBIT in our gas division improved by Euro 5 million to Euro 21 million compared to last year - thanks also to colder weather. In our water division, earnings before interest and taxes (EBIT) went up Euro 1 million in the first two quarters of fiscal year 2002/03. Of total water sales in the first two quarters of 2002/03, MVV Energie AG accounted for 58%, Energieversorgung Offenbach AG for 26% and Stadtwerke Solingen GmbH for 16%. At our energy from waste division (MHKW), developments in EBIT were negatively affected primarily by creation of provisions and a damaged turbine in Offenbach. Sales in the multi-utility services business at MVV Energie AG grew 25 percent between October 2002 and March 2003 and thus represent over 5 percent of total sales. For the entire fiscal year, MVV Energie AG expects total sales in this division to reach the 9-figure Euro range for the first time. Roland Hartung: "The start-up phase has not yet been completed despite obviously apparent progress. This applies especially for investments to expand our fibre-optic network in Mannheim for our telecommunications division." The results in our new renewable energy division were still negative due to heavy investments in biomass powerplants. The biomass powerplants in Königs Wusterhausen, Mannheim and Flörsheim-Wicker are scheduled to begin operation by the end of 2003 and are expected to make positive contributions to EBIT. Growth to Continue In accordance with our strategy, we intend to continue growing through additional participations in national and international distribution utilities and value-added services providers. For additional acquisitions, we can initially fall back on the proceeds gained from the sale of GVS shares. In fiscal year 2002/03, we have been paying particular attention to taking advantage of synergies in our rapidly growing corporate group. Furthermore, we increasingly intend to offer value-added energy services for industrial and commercial customers via our participations in other municipal public utilities. Roland Hartung: "With Powerline, which provides Internet access via the wall socket, we intend to achieve our target of making it possible for more than half of all the households in Mannheim to connect to Powerline this year. By the end of 2003, these products will be ready for marketing." Within the framework of pilot-projects, we have been testing SmartHome applications and Internet telephony. In addition, our subsidiary, Power PLUS Communications AG in Mannheim, has been marketing this technology, which has thus far been successfully used in Mannheim, to other municipal public utilities. Competition Authority Offers Opportunities and Risks The decision of the German federal government to replace the previous practice of the agreements of associations with a State authority responsible for competition by the summer of 2004 at the latest will mean both opportunities and risks for MVV Energie AG. Roland Hartung: "We advocate strengthening the market, for example, by eliminating the T-component, which is the fee for cross-border electric power deliveries, or by bundling the four energy-balancing markets that have existed until now. Publication of factors that will affect rates and prices, such as, for example, the availability of powerplants and cross-border transmission capacities as well as limitations on access fees for high-voltage networks, would also represent additional, feasible measures for an authority responsible for governing competition, which would have a positive impact for us. A possible mandatory decrease in access fees for distribution grids could, however, negatively affect our results." Mannheim, May 21, 2003