Press release

Acquisition of ESB's Street Lighting Business

16th October 2009:

The Electricity Supply Board (ESB) and Airtricity, through its parent company Scottish and Southern Energy plc (SSE), have entered into an agreement for the sale of ESB's public lighting business, ESB Contracts Ltd. (ESBC). The acquisition is due to be completed on 30th November, 2009.

ESB Contracts currently maintains approximately 300, 000 street lights in the Republic of Ireland, principally on behalf of the Local Authorities, and its assets include vehicles and stock. As part of the agreement to sell the business for a consideration of €6.4 million, ESB will provide a range of transitional services to SSE to ensure a smooth transition. ESB has kept the Local Authorities and Government informed throughout the competitive sale process.

Under SSE's ownership, the new business will be known as Airtricity Utility Solutions and will employ over 100 people, including personnel currently working with ESBC. Following the acquisition, ESB Contracts employees will have the option to transfer to the new company. A period of consultation with employees will take place over the coming weeks.

SSE, through its wholly owned subsidiary Airtricity, already supplies electricity to over 100,000 customer accounts in the All-Ireland Single Electricity Market (SEM).

ESB and SSE are also partners in a joint venture to construct the new Marchwood 850MW gas fired power station near Southampton in the UK. It is expected that the station will go into full production later this month.

Chief Executive of SSE, Ian Marchant said: "It is just two years since we set out our goal to extend SSE's activities beyond the Great Britain market and into Ireland and the acquisition of this street lighting business adds to the step-by-step progress we have already made in electricity generation and supply through Airtricity. The key task now is to make sure that the street lighting service we deliver to local authorities and the communities they serve is of the highest possible standard."

Chief Executive of ESB Padraig McManus said "ESB Contracts has a long history of maintaining public lighting to the highest standards and we know that Airtricity will build on this strong track record for delivery to all local communities. ESB is investing in its international business with a growing presence in Britain. Our Strategic Framework to 2020 sets out ambitious targets in relation to renewables, energy efficiency and carbon reduction. We are on track to becoming a leading renewables generator and we are focussing on building a competitive supply business and efficient networks in Ireland", he added.

ENDS

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