As in the previous year, the SDAX-listed energy distribution and service company MVV Energie, Mannheim, will pay a dividend of Euro 0.75 per share for the past 2003/2004 financial year (01.10.2003 - 30.09.2004). The shareholders thus approved the recommendation made by the Executive and Supervisory Boards to the sixth Annual General Meeting of the company since its stock market flotation in 1999, which was held in Mannheim on Friday. The dividend is scheduled to be paid on 7 March 2005. The fact that only one part of the proceeds from the sale of the company's shares in Gasversorgung Süddeutschland (GVS) was distributed in the previous year has enabled the company to distribute this level of dividend this year as well, thus safeguarding the continuity of its dividend policy.

The Annual General Meeting also approved the proposal made by the Executive and Supervisory Boards in respect of the creation of authorised capital amounting to 30% of the company's share capital. "This will provide us with greater financial scope for the profitable growth we have planned in our core business fields of electricity, gas, district heating and water, as well as in the growth areas of environmental energy and energy-related services," commented Dr. Rudolf Schulten.

Following the completion of its strategic realignment and organisational restructuring, the Mannheim-based energy company intends to use the capital increase to prepare for the future. As Dr. Rudolf Schulten, the Chief Executive Officer of the company, underlined at the Annual General Meeting, such a capital increase would provide the company with funds of around Euro 250 million based on its current share price. According to the CEO, the company's focus in this respect was on expanding the network of municipal utility companies of the MVV Energie Group which, in addition to the Mannheim parent company, currently includes Energieversorgung Offenbach and the municipal utility companies in Solingen, Ingolstadt and Kiel, as well as Köthen Energie and several municipal district heating shareholdings in Poland and the Czech Republic. "We will be prepared for any interesting new acquisitions opportunities which arise in the market. This will secure our autonomy and our independence in the market," added Dr. Schulten.

At the same time, the MVV boss expects to see further consolidation on the distributor level of the German energy market. "Increasing numbers of municipal utility companies will decide to enter into one form or another of strategic cooperation in order to increase their competitiveness and company value on an ongoing basis. MVV Energie is also known to view this as constituting a promising model." The company was currently investigating a variety of options in this respect.

Increasing the internal earnings power of MVV Energie will be at the top of the company's agenda in the coming months. With its recently launched FOKUS cost-reduction programme, MVV Energie intends to cut its administrative expenses by a double-digit million sum and thus to achieve a further rise in the company's competitiveness. "Increasing competitive pressure is forcing energy companies to achieve higher levels of profitability and professionalism. We aim to be at the forefront of our sector in this respect as well."

The Annual General Meeting was attended by more than 1,800 shareholders, representing 92,7 percent of the company's share capital.

Mannheim, 4 March 2005