This reorganization process - which will result in a more transparent and straightforward shareholding structure for the Energias do Brasil Group - pursues four main objectives: (i) to allow the concentration of the share capital of Energias do Brasil?s subsidiaries into one single entity thus providing increased liquidity to those company's shareholders; (ii) to facilitate the implementation of management decisions directed at improving efficiency at the operating companies and reducing operational costs; (iii) to optimize tax efficiency throughout the Energias do Brasil Group; and (iv) to create the conditions for the fulfilment of ANEEL's regulatory requirements regarding the unbundling of the generation, transmission and distribution activities of vertically integrated electricity companies in Brazil.

The reorganization process will be submitted to approval at the Extraordinary Shareholders Meetings of the respective companies, which will be held on April 29th, and will be subject to the previous approval of the regulatory entity of the Brazilian electricity sector (ANEEL). This reorganization process is expected to be concluded, either previously or simultaneously with the listing of Energias do Brasil shares in Bovespa (São Paulo stock market), which should occur until November 30th, 2005.

EDP - Energias de Portugal, S.A.