9 June 2006 - Austrian power company Verbund announced the completion of its business separation process today and said that the activities of network, production, sales and marketing had been unbundled ahead of time.

"The unbundling, which is only now being categorically demanded by the EU, was undertaken in a consequent and comprehensive way years ago by Verbund, Austria's leading electricity company," announced Hans Haider, director general of Verbund.

Refering to competitive electricity markets he said: "I can determine with absolute clarity that it is not down to us from Verbund if too little competition is being placed in Austria's electricity market. In fact, it is exactly we from Verbund who have been driving a fresh, powerful wind of competition into the market since the middle of 2005."

"Verbund conducted the company law directive decartelization of its business sectors as early as 1999," according to Haider. "The business area of power transmission has been spun off into an own joint-stock corporation with an independent board of directors, its own employees and, naturally, its own assets. There is no contact whatsoever between our production division and the mains operation. This goes so far as to there being a physical separation of the mains company. Therewith, an important prerequisite for more competition on the Austrian electricity market has been fulfilled from our side.

In its capacity as operative management holding company, Verbund, the Österreichische Elektrizitätswirtschafts-AG, exercises the corporate management of its subsidiary companies and, together with these, forms the Verbund Group, which employees around 2400 persons.

Five independent companies, including three joint-stock companies, carry out the core business. The Verbund electricity production is concentrated in two companies, the Verbund Austrian Hydro Power AG (AHP) and the Verbund Austrian Thermal Power GmbH & Co KG (ATP). The Verbund Austrian Power Grid AG (APG) was founded as a Verbund mains company. The Verbund Austrian Power Trading AG (APT) is responsible for the electricity sales. Since mid 20005, Verbund has been active on the Austrian consumer market with Verbund Austrian Power Sales GmbH (APS). Furthermore, Verbund has a 35 percent holding in the Kelag and the Steweag Steg GmbH, respectively.