EDF Energies Nouvelles Moves into Biofuels:

Signature of a Preliminary Agreement with Europe's Leading Ethanol Distributor

PARIS--(BUSINESS WIRE)--

Regulatory News:

EDF Energies Nouvelles (Paris:EEN) has sealed a preliminary agreement with Alcofinance SA of Belgium. Upon completion of a reserved issue of shares for €23 million, EDF Energies Nouvelles will own 25% of a newly formed company housing Belgium-based Alcofinance's ethanol production and distribution activities. The agreement also provides for an option for EDF Energies Nouvelles to raise its interest to 50% within 24 months subject to certain pre-agreed conditions.

This transaction will enable EDF Energies Nouvelles to move into the biofuel segment and to capitalise on the know-how and experience of a European leader in the ethanol market that boasts a powerful sales and logistics network. This move dovetails with EDF EN's policy of expanding into new energy segments, alongside its core business of wind energy. It also fits with its strategy of investing in regulated markets offering the prospect of sufficient visibility and profitability.

The biofuels market is enjoying brisk expansion thanks to various tax subsidy mechanisms aiming to promote an alternative to the various forms of oil that dominate the transportation sector. It has been identified by EDF Energies Nouvelles as a source of growth harbouring synergies with biomass power.

EDF Energies Nouvelles will thus have all the various applications of biomass covered, i.e. electricity generation, heat production and biofuels.

This investment opens up bright prospects in second-generation biofuels, which are highly efficient from an environmental perspective and should enable EDF Energies Nouvelles to lay the foundations for it to pursue major ambitions in this segment. The agreement also provides for a research and development partnership with the EDF Group.

The construction of an initial ethanol fuel manufacturing facility in Gent, Belgium will represent the first concrete achievement under this partnership. This project, which is being developed by Alco Bio Fuel with a production capacity of 150,000 m³ p.a., will qualify for a tax exemption under the Belgian quota system covering a volume of 90,000 m³. The plant is expected to enter service in 2008.

HSBC acted as EDF EN's sole financial advisor on this deal.

The final agreement is due to be signed during the first half of 2007.

About EDF Energies Nouvelles

Founded in 1990, EDF Energies Nouvelles is a world-class player in the green electricity generation market. With a presence in 9 European countries and in the United States, EDF Energies Nouvelles operates in four renewable energy segments (wind, hydro, biomass and solar). Wind energy currently accounts for nearly 80% of its installed capacity.

With its unique profile as an integrated operator, EDF Energies Nouvelles has a presence spanning the entire value chain, from development and construction through to production and operations & maintenance. The Group also pursues the development and sale of structured assets, which consists primarily in selling renewable energy generating assets to individuals or to energy services companies. EDF Energies Nouvelles is a 50%-owned subsidiary of the EDF group.

Since 28 November 2006, EDF Energies Nouvelles has been listed in Compartment A of Eurolist by Euronext Paris (code: EEN, ISIN code: FR0010400143). www.edf-energies-nouvelles.com

About Alcofinance

Alcofinance, Alcogroup's top holding company, is the European leader in ethanol distribution with its volume of around 400,000 m³ giving it market share of 15%. Together with Swiss company Alcotra, Alcogroup distributes worldwide over one million cubic metres of ethanol for food, industrial, cosmetic and biofuel applications.

Alcogroup, which already owns production activities in South Africa and Mauritius, is also building a bioethanol facility in Gent and has several plans to set up ethanol plants in Eastern Europe, Africa, South and Central America. In 2006, Alcofinance posted sales of €272 million and had around 200 employees.