EDP B.V. will accept up to a maximum aggregate principal amount of €500,000,000 of the 2011 Notes and any and all principal amount of the 2008 Notes, in exchange for New Notes, up to a maximum of €700,000,000.

The Exchange Offer is being made on the terms and subject to the conditions described in the Exchange Offer Memorandum. The New Notes will be issued under EDP's and EDP B.V.'s €5,000,000,000 Programme for the Issuance of Debt Instruments (the "Programme") and application will be made for the New Notes to be admitted to official listing on the London Stock Exchange.

The final spread on the New Notes will be announced on 8 June 2005. The Exchange Offer will expire at 4pm BST on 14 June 2005 and pricing will be fixed on 15 June 2005. Settlement is expected on 22 June 2005. EDP B.V. may, in its sole discretion, increase the issue amount of the New Notes.

Simultaneously EDP announced today that it intends to launch a Consent Solicitation on its €1,000,000,000 6.400% Notes due 2009 (the "2009 Notes") to approve certain amendments to the terms and conditions of these Notes (the "Conditions").

The purpose of the Consent Solicitation is to (a) conform more closely the Conditions to those of other outstanding debt securities issued by EDP and EDP B.V. under the Programme and (b) insert an Investor Put exercisable by holders on notice given by EDP.

A meeting of the Noteholders will be held at 10.00 a.m. (London time) on 27 June 2005. Noteholders who wish to vote must take action prior to 10.00 a.m. (London time) on 24 June 2005 (subject to earlier deadlines set by the clearing systems).

Holders of the Notes are advised to carefully read the Consent Memorandum for full details of the Consent Solicitation and information on the procedures for participating in the Consent Solicitation.

This restructuring transaction which involves the principal Eurobonds issued by the EDP Group reflects EDP's active debt portfolio management policy and has the following main objectives:

>    to extend the maturity profile of the Group?s debt portfolio;
>    to manage efficiently the refinancing risk by reducing debt maturities in 2008 and 2011;
>    to conform more closely the terms and conditions of its outstanding debt securities issued by EDP and EDP Finance B.V. ;
>    to take advantage of present market conditions, namely the historically low interest rates, which will allow a reduction in annual coupons of more than 1%.

Deutsche Bank is acting as Consent Agent and Transaction Co-ordinator on this transaction and ABN AMRO, BNP Paribas and Deutsche Bank are acting as Joint Dealer Managers.


EDP - Energias de Portugal, S.A.