Colder weather in first quarter of 2007/08 leads sales to rise by 14 percent to Euro 663 million and operating earnings (EBIT) before IAS 39 by 26 percent to Euro 87 million - CEO Dr. Rudolf Schulten: "We are right on course"

Colder temperatures in the current year mean that the Mannheim-based energy company MVV Energie (WKN: A0H52F, ISIN: DE000A0H52F5) has successfully made up for the downturn in volumes seen in the mild winter of 2006, enabling it to start the new 2007/08 financial year with substantial earnings growth. Upon the presentation of the financial report for the 1st quarter (1 October - 31 December 2007) in Mannheim on Thursday, company CEO Dr. Rudolf Schulten underlined his satisfaction with these results. "We are right on course and are maintaining our successful strategy of profitable, value-based growth." In the past three months, MVV Energie raised its sales to Euro 663 million, up 14 percent on the same period in the previous year. Operating earnings (EBIT) before IAS 39 rose by 26 percent to Euro 87 million. Including the valuation-dependent, non-cash special items resulting from the recognition of energy trading transactions pursuant to IAS 39, operating earnings (EBIT) grew to Euro 124 million, as against with Euro 69 million in the previous year.

According to the CEO, these positive results were due both to significantly cooler weather conditions - the weather indicator for heating energy requirements at the Mannheim location was 33 percent higher than in the previous year's period - and to the discontinuation of personnel expense provisions stated in the previous year, as well as to initial earnings contributions from new companies. In line with the forecast issued at the beginning of the year, Dr. Schulten therefore affirmed that the company would be able to achieve double-digit growth in both sales and operating earnings in the 2007/08 financial year as a whole. "Our group of companies is superbly positioned in the market. We prepared at an early stage for the increase competition and growing pressure on costs due to grid regulation. And we will be seizing any opportunities which arise along the way."

The company also achieved substantial year-on-year growth in its other key financial figures between October and December 2007 compared with the same period in the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 55 percent to Euro 161 million, while earnings before taxes (EBT) improved by Euro 57 million to Euro 100 million. The net surplus for the period after minority interests increased from Euro 21 million to Euro 58 million. Earnings per share thus rose from Euro 0.38 to Euro 0.91.

Prior to consolidation, the Group's municipal utility shareholdings in Germany and district heating shareholdings in Poland and the Czech Republic generated combined sales of Euro 311 million (previous year: Euro 263 million) and operating earnings (EBIT) of Euro 48 million in the 1st quarter of 2007/08, compared with Euro 30 million in the previous year's period.

The CEO added that in its core business MVV Energie would also be focusing in the next two years and as part of its value-based growth strategy on increasing the cost efficiency of its proprietary operations and administration, on acquiring additional shareholdings and on tapping additional synergy potential within the municipal utility group. "Not only that, we also aim to achieve profitable growth in our successful high-growth fields of environmental energy and energy-related services both organically and by means of new investments and acquisitions, as well as exploiting new market opportunities", added Dr. Schulten. The proceeds of around Euro 228 million from the capital increase executed in October 2007 would also be channelled in this direction.

The company sees the growth market for environmental and climate protection as offering particularly good opportunities for its further development. "Our group of companies already accords great importance to energy-efficient, resource-saving processes and technologies, as well as to the increased use of renewable energy forms." MVV Energie is one of the leading operators of biomass plants and is pressing ahead with the expansion of its cogeneration plants and district heating grids as a contribution towards greater energy efficiency. In this respect, Dr. Schulten expressly welcomed the new law to promote the supply of heating from renewable energy sources and environmentally-friendly district heating in the state of Baden-Württemberg, the first legislation of its kind in Germany, as well as the legislation proposed by the Federal Government as part of its energy and climate programme.

Mannheim, 14 February 2008

Note: the complete Financial Report for the 1st Quarter of the 2007/08 financial year can be found in the download section of this internet site

Key Figures of the MVV Energie Group¹
1 October 2007 - 31 December 2007

Euro million	2007/2008	2006/2007	% change
Sales2	663	582	+ 14
EBITDA	161	104	+ 55
EBITA	124	69	+ 80
EBIT	124	69	+ 80
EBIT before IAS 39	87	69	+ 26
EBT	100	43	+ 133
Net income for the period	67	26	+ 158
Net income for the period after minority interests	58	21	+ 176
Earnings per share3 in Euro	0.91	0.38	+ 139
Cash flow before working capital and taxes	125	107	+ 17
Cash flow before working capital and taxes per share3 in Euro	1.96	1.92	+ 2
Free cash flow4	- 19	87	-
Total assets (as of 31.12.2007 / 30.9.2007)	3 511	3 278	+ 7
Equity (as of 31.12.2007 / 30.9.2007)	1 207	914	+ 32
Investments5	45	54	- 17
1 in accordance with International Financial Reporting Standards (IFRS)
2 excluding electricity and natural gas taxes
3 increase in number of shares (weighted quarterly average) from 55.8 million to 63.5 million as    result of capital increase
4 cash flow from operating activities less investments in intangible assets, property, plant    and equipment and investment property
5 investments in intangible assets, property, plant and equipment, investment property, as    well as payments for the acquisition of fully and proportionately consolidated companies and other    financial assets