PRESS RELEASE -11 November 2010

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(1)PRESS RELEASE -11 November 2010 The Management Board of A2A S.p.A. has examined and approved the Interim Report on Operations at 30 September 2010 *** Significant improvement in Net Financial Debt, down by 360 million euros in the first nine months of 2010 Group net profit equal to 436 million euros: positive contribution due to the extraordinary operations of the period. *** Milan, 11 November 2010 - Today’s meeting of the Management Board of A2A S.p.A, chaired by Mr. Giuliano Zuccoli, examined and approved the Interim Report on Operations at 30 September 2010.. Main consolidated results at 30 September 2010 Millions of euros. 30.09.2010 4,056 686 342 436. Revenues Gross Operating Margin Net Operating Result Net Profits of Group. 30.09.2009 (*) 3,934 752 474 2. Change 3.1% -8.8% -27.8%. Millions of euros. Net financial debt. 30.09.2010. 31.12.2009. Change. 4,284. 4,644. -360. The Board noted with satisfaction the significant reduction in debt position (-360 million euros), partly due to the sale of the shareholding in Alpiq in the first half of the year (for approximately 306 million euros). Industrial performance in the period from January to September 2010, net of extraordinary income items which benefited the corresponding period of 2009 (42 million euros), was substantially stable in terms of EBITDA (gross operating margin) (-24 million euros), despite the continuing difficulties that characterized the energy sectors in which the Group operates. It should also be noted that the industrial results for the period do not yet include the positive results achieved by Montenegrin affiliate EPCG, which has been consolidated temporarily by posting the Group’s share of the result to a single item in the Income Statement. In the period in question the gross. 1. WorldReginfo - ff73f3c5-d79f-4ae1-9b8b-f87d3ba79ac6. (*) The comparative values for the first nine months of 2009 are reclassified in order to reflect the position of the trading business with evidence of the "negotiation margin" (so-called "net presentation") and the adoption of IFRIC 12..

(2) operating margin was 52 million euros, and the net financial position was positive and equal to 73 million euros. *** OPERATING DATA The electricity sold by Group companies in wholesale and retail markets totalled 25,818 GWh1, an increase over the total for the same period last year (20,609 GWh). The sales concerned the domestic market for 19,208 GWh and foreign markets for 6,610 GWh. Group plant produced 10,541 GWh (-1%) of the energy needed to fulfill this demand. The amount of electricity generated in thermoelectric plant (6,380 GWh) was 10% lower than in the same period of the preceding year, despite the contribution of the Monfalcone plant (1,358 GWh, +732 GWh more than at 30 September 2009), which was acquired in July of last year. Hydroelectric production totalled 2,931 GWh (+22%), benefiting from the inclusion of the hydroelectric plant in Calabria (1.079 GWh, +866 GWh more than in September 2009) in the perimeter of the Group. The production of electricity by cogeneration, waste-to-energy and biogas plants (1,230 GWh) grew by 9% in the first nine months of the year. Sales of methane gas (2,847 million cubic metres, +13%) and heat (1,882 thermal GWh, +12%) were also higher during the period. The Group’s waste-to-energy and cogeneration plants contributed to cover the thermal load, producing a total of 1,604 thermal GWh (+ 12%). The quantities of waste disposed of totalled 2,032 thousand tonnes, an increase of 3% from the figure for the same period last year. The management of distribution networks reported an increase in the quantities of gas distributed (1,430 million cubic metres, +11%) with quantities of electricity (8,468 GWh) and water (75 million cubic metres) substantially in line with the same period last year.. The results of the A2A Group in the period in question are commented below, compared to the economic results at 30 September 2009 and to the financial results at 31 December 2009. The “Revenues” of the A2A Group totalled 4,056 million euros, 3.1% higher than in the corresponding period of 2009. The “Gross Operating Margin” for the period was 686 million euros, a 66 million euros fall from the 2009 result (-8.8%). This contraction incorporates 42 million euros in non-recurring income received during 2009. ***. 1. net of energy sold and at the same time purchased by the Exchange .. 2. WorldReginfo - ff73f3c5-d79f-4ae1-9b8b-f87d3ba79ac6. ECONOMIC AND FINANCIAL DATA.

(3) The table below shows the breakdown of the industrial results by area of activity. Millions of euros Energy business -electricity -gas Heat and Services business Environment business Networks business Other Services & Corporate business Total. Gross Operating Margin 30.09.2010 265 230 35 30 202 211 (22) 686. Gross Operating Margin 30.09.2009 (*) 391 300 91 41 173 173 (26) 752. (*) the EBITDA by business has been reclassified to incorporate the effects of the reorganisation of the Group companies.. There was a 126 million euro fall in the margin of the Energy business, net of the non-recurring income components for 2009 (48 million euros), 28 million euros attributable to electricity and 50 million euros to gas. The 28 million euro fall in the electricity sector is mainly attributable to the reduced margin in wholesale markets, partially offset by the positive trend in retail market profitability, as well as in that of environmental certificates, where the Group was able to benefit from its long position on green certificates and CO2 emission rights due to its production of energy from renewable sources. The third quarter of the year, like the preceding one, contributed to offset the lower performance of the trading portfolio which had characterised the first three months of the year, compared to the corresponding period of 2009, ensuring a contribution to the results similar to that made in 2009.. The Heat and Services business showed a gross operating margin of 30 million euros, 11 million euros less than in the corresponding period of 2009. The positive effect of higher heat sales, related to the bad weather in the first few months of the year, was more than compensated for by a fall in the amount of electricity produced by cogeneration (which was also burdened with a fall in wholesale market prices) and higher variable production costs that, in the first nine months of 2009, had benefited from fuel oil costs that were particularly low due to specific negative aspects of the economic cycle. The Environment Business significantly increased its industrial results, achieving a gross operating margin of 202 million euros (+29 million euros). The contributions of the Brescia waste-to-energy plant - which suspended operations in the first months of 2009 for extraordinary maintenance – and by the newly started waste disposal activity in the Naples metropolitan area were particularly positive. The improved performance of the business, compared to the corresponding period of 2009, also incorporates the benefit derived from 7 million euros of non-recurring net income components. The Gross operating margin of the Networks business (211 million euros) was 38 million euros higher than in the same period of the previous year. This development is substantially attributable to higher. 3. WorldReginfo - ff73f3c5-d79f-4ae1-9b8b-f87d3ba79ac6. The fall in margins in the gas sector (-50 million euros compared to the same period of 2009) is due to the different hysteresis of the indexing of the curves of revenues and unit cost of gas (a factor that, in contrast, had a positive effect on the results for the first nine months of 2009) as well as a fall in sales margins, especially in the thermoelectric sector..

(4) revenues from gas distribution business and, in the electricity sector, higher revenues due to specific company equalisation for the current year and settlement payments for previous years. *** Amortisation, depreciation, write-downs and provisions totalled 344 million euros (278 million euros at 30 September 2009). Amortisation of fixed assets and depreciation of intangible assets, at 291 million euros, increased by 36 million euros compared to the corresponding period of the previous year, due to the acquisition of the Monfalcone thermoelectric plant and the hydroelectric plants in Calabria, which have been included in the consolidation perimeter since July 2009. Provisions for risks and bad debt totalled 53 million euros, an increase of 30 million euros compared to 30 September 2009. Approximately 19 million euros of this increase is due to the release of funds during 2009, and prudently higher provisions made in the first nine months of 2010 to cope with the growing difficulties faced by businesses and consumers in meeting their obligations. As a result of the above dynamics, the Net Operating Income totalled 342 million euros (at 30 September 2009 the total was 474 million euros). Net financial charges totalled 135 million euros (242 million euros at 30 September 2009). In the corresponding period of last year, this item included interest reported in the assessment notices concerning the recovery of presumed State aid for 118 million euros. Net of this effect, net financial charges at 30 September 2010 increased by 11 million euros, due primarily to the increased average financial exposure of the Group. The Affiliates, totalling 56 million euros, were unchanged from the figure for the corresponding period of the preceding year. This result includes 9 million euros from the Montenegrin EPCG. Other non-operating costs show no value at 30 September 2010, while they totalled 166 million euros for the corresponding period of 2009, attributable to the share capital related to the presumed State aid.. “Net result from non-current assets held for sale” totalled 286 million euros and refer primarily to the net proceeds generated from the disposal of the 5.16% investment in Alpiq Holding AG. and of Retrasm S.r.l.. Group Net Income for the period, after deduction of the Minorities profit, totalled 436 million euros (2 million euros at 30 September 2009).. Financial position and assets The consolidated “Net employed capital” at 30 September 2010 came to 8,741 million euros, 4,457 million of which covered by net equity (including 893 million referred to Minorities), and 4,284 million euros covered by net financial debt.. 4. WorldReginfo - ff73f3c5-d79f-4ae1-9b8b-f87d3ba79ac6. Income taxes totalled 90 million euros (103 million euros at 30 September 2009)..

(5) In particular, “Operating Capital”, equal to 888 million euros, was substantially unchanged from the figure at 31 December 2009. “Net fixed assets” totalled 7,853 million euros (including “Assets/Liabilities held for sale”), a decrease of 495 million euros during the period, due to the disposals of the investments in Alpiq Holding AG. and in Restrasm S.r.l., which were posted among the “Non-current assets held for sale” at 31 December 2009, and the reduction in tangible and intangible assets due to the depreciation, amortization and investments of the period. The “Net financial position”, equal to 4,284 million euros at 30 September 2010, has improved by 360 million euros since 31 December 2009, thanks mainly to the disposals of the investments in Alpiq Holding AG. and in Retrasm S.r.l. and the generation of operating cash. These components were partially offset by the payment of 217 million euros in dividends by parent company A2A S.p.A. during the period.. *** Business outlook The 2010 financial year will close with net profits significantly higher than those recorded in the previous year, and a lower net financial position. The result of ordinary operations (net of the extraordinary income components that characterised 2009) should close essentially in line with those of the previous year, also in consequence of the decisions made on the allocation of employed capital, which saw the Group dispose of financial shareholdings (Alpiq) in favour of industrial investments (EPCG in Montenegro).. The Executive responsible for the drawing up of A2A S.p.A.'s company accounting documents, Stefano Micheli declares – in accordance with article 154-bis, subsection 2 of the Financial Act (TUF) Legislative Decree 58/1998) - that the accounting information contained in this document corresponds to the documentary evidence, books and accounting records. *** The financial statements of the A2A Group, extracted from the Interim Report at 30 September 2010, are attached. This report is not subject to audit.. The Interim Report at 30 September 2010 will be available to the public at the company Head Office, at the Borsa Italiana S.p.A. and on the website www.a2a.eu from 12 November 2010. For further information: Communications and Public Relations: tel. +39 02 7720.4582, ufficiostampa@a2a.eu Investor Relations: tel. +39 02 7720.3879, ir@a2a.eu www.a2a.eu. 5. WorldReginfo - ff73f3c5-d79f-4ae1-9b8b-f87d3ba79ac6. ***.

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(7) CONSOLIDATED INCOME STATEMENT. 01/01/2010 09/30/2010. 01/01/2009 09/30/2009. (millions of euro). third quarter 2010. third quarter 2009. (*). (*). REVENUES 3.974 82 4.056. 3.827 107 3.934. 1.149 39 1.188. 1.062 52 1.114. 2.782 213 2.995. 2.622 202 2.824. 792 69 861. 723 64 787. LABOUR COSTS. 375. 358. 115. 115. GROSS OPERATING INCOME - EBITDA. 686. 752. 212. 212. DEPRECIATION, AMORTIZATION, PROVISIONS AND WRITE-DOWNS. 344. 278. 104. 103. NET OPERATING INCOME - EBIT. 342. 474. 108. 109. 10 145 56 -79. 11 253 56 -186. 2 32 5 -25. 3 138 27 -108. REVENUES FROM THE SALE OF GOODS AND SERVICES OTHER OPERATING INCOME. TOTAL REVENUES OPERATING EXPENSES EXPENSES FOR RAW MATERIALS AND SERVICES OTHER OPERATING EXPENSES. TOTAL OPERATING EXPENSES. FINANCIAL BALANCE FINANCIAL INCOME FINANCIAL EXPENSES AFFILIATES. TOTAL FINANCIAL BALANCE OTHER NON-OPERATING INCOME. -166. INCOME BEFORE TAX. -126. 263. 122. 83. -125. 90. 103. 21. -7. INCOME FROM CURRENT OPERATIONS NET OF TAX. 173. 19. 62. -118. NET RESULT FROM NON-CURRENT ASSETS HELD FOR SALE. 286. 7. 7. NET INCOME. 459. 26. 69. -118. MINORITIES. -23. -24. -4. -9. GROUP NET INCOME FOR THE PERIOD. 436. 2. 65. -127. INCOME TAXES. (*)The comparative values as at September 30, 2009 and the year end 2009, for the income statement items concerning revenues, operating costs, depreciation, amortization and financial balance are restated to reflect the exposition of the trading activity with the only evidence of negotiation margin (net presentation), as well as of the IFRIC 12 adoption.. 7. WorldReginfo - ff73f3c5-d79f-4ae1-9b8b-f87d3ba79ac6. OTHER NON-OPERATING EXPENSES.



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