EDP - Energias do Brasil, S.A. ("Energias do Brasil") - 62.4% owned by EDP - Energias de Portugal, S.A. ("EDP") announces that Empresa Energética do Mato Grosso Sul, S.A. ("Enersul"), received a notification from Aneel on the decision to reassess the Regulatory Asset Base ("RAB") defined in its 2003 Tariff Review.

The notification states that inconsistencies were found in the previous assessment - which was prepared by an independent company that at the time was ratified by Aneel ? and determines a reduction of R$ 185.2 million in Enersul?s net RAB and of R$ 383.6 million in its gross RAB (values as of Dec 31, 2002), which should imply a decrease of approximately 5.4% in Enersul's tariff.

Our preliminary analysis, based on data from Aneel's notification and reflecting our best judgment of the applicable rules and of the information made available to us at this point, indicates a potential decrease of around 3% in Enersul's tariff.

Aneel's notification reflects an uncommon decision in the Brazilian energy sector, in which an assessment report that was audited several times by Aneel before being ruled as definitive in 2005 and subsequently "frozen" in 2006 according to Aneel?s Resolution nº 234/2006, was revised and may affect Enersul's RAB.


EDP - Energias de Portugal, S.A.