On December 30, 2011, China Three Gorges Corporation ("CTG") notified EDP that it has entered into a Strategic Direct Sale Agreement with Parpública – Participações Públicas (SGPS), S.A. for the acquisition of 780,633,782 ordinary shares of EDP, which correspond to 21.35% of EDP's share capital and 21.35% of the respective voting rights. The imputation of a qualifying holding results from the signature of said agreement within the context of the implementation of EDP's 8th reprivatization phase.

The referred acquisition of shares is subject to the prior satisfaction of conditions, namely the obtaining of approvals from relevant regulatory authorities from certain jurisdictions.

EDP was also informed that the acquisition shall be made by China Three Gorges International (Europe), S.A. ("CTGI"), a wholly-owned subsidiary of CTG, a state-owned company of the People's Republic of China.

Although the acquisition of the above mentioned stake has not been concluded, Portuguese law deems relevant, for certain purposes, the attribution of voting rights as a result of the execution of a purchase agreement over listed companies' shares. Accordingly, as of the date hereof and until completion of the acquisition process, the attribution of voting rights inherent to the 780,633,782 shares, representing 21.35% of the share capital of EDP, does not involve the actual exercise of those rights nor the ownership of any stake in the share capital of EDP by CTG or CTGI.

EDP – Energias de Portugal, S.A.