Italy - ERG Renew expands within the French wind market

ERG Renew (ERG Group), through the subsidiary Enerfrance, signed an agreement with the French Group GSEF for the acquisition of a 50% holding in Cita Wind and in five project companies belonging to the GSEF Group. Cita Wind, a company engaged in the development of wind-parks in the north of France, which began operations in 2004, currently has projects in course totalling 288 MW, of which 168 in an advanced phase of development and 120 in a preliminary phase of development.

A total amount of Euro 3 million will be paid by Enerfrance to GSEF for the acquisition, including 50% of the development costs relating to 2008. The agreement includes an increase in the initial shareholding of Enerfrance in the project companies from 50% to 90% on attaining the relevant authorisations, with the payment of a further amount which will be based on the future profitability of the plants (i.e. based on Euro/MW).

Cita Wind’s corporate governance provides that it will be managed by an Executive Chairman and controlled by a Strategic Committee, which will provide strategic direction of the activities of the company. Raffaele Tognacca, Chief Executive Officer of ERG Renew, commented: “This important operation allows us to strengthen our position in the French market, where we currently have five operating wind-parks and therefore represents a significant step in our European development strategy for the wind sector”

About ERG Renew:
ERG Renew (ERG Group), listed on the Milan Stock Exchange, operates in the following sectors:
• Wind - Italy: There are currently 4 plants operational: Troia San Vincenzo, Troia San Cireo, Viticuso and Pian dei Corsi with a total installed power of 79 MW (2.9% market share in Italy at the end of 2007). The company has 37.5 MW in the commissioning phase, 168 MW in construction, 73 MW authorised and 227 MW in development, comprising its target of 700 MW.
• Wind – France: ERG Renew in November 2007 entered the French market through the acquisition of 5 wind-parks for a total installed capacity of 55.2 MW. The French wind-parks are owned by Enerfrance.
• Water services: Through the subsidiaries Sodai and DSI, operates in the treatment of industrial waste. While Sodai operates through 20 workshops of Trenitalia (49% shareholder), DSI undertakes solid and liquid waste treatment activities on behalf of third parties.

For more information, please contact Trevor Sievert at ts@windfair.net