EDP INFORMS ON THE FINAL DECISION ADOPTED BY THE

EUROPEAN COMMISSION RELATING TO THE ACQUISITION OF

JOINT CONTROL OVER GDP – GÁS DE PORTUGAL, SGPS, S.A.

Following the information made public by EDP’s Board of Directors on the 6^th of December, EDP informs that it was notified today of the final decision taken by the European Commission (“Commission”) in relation to the competition appraisal of the acquisition of joint control over GDP – Gás de Portugal, SGPS, S.A. (“GDP”) by EDP and Eni S.p.A. (“ENI”).

The Commision’s decision of 9 December, 2004 considered that the concentration by which EDP and ENI would acquire joint control over GDP is incompatible with the common market, in accordance with the provisions set forth in Council Regulation nr. 4064/89, of 21 December, on the control of concentrations between undertakings.

The Commission considered that the commitments presented by EDP and ENI with the purpose of eliminating competition concerns raised by that entity during the investigation proceedings on the abovementioned concentration did not fully address those same concerns. These commitments relate both the natural gas and the electricity businesses and only a number of significant divestments from generation assets would be considered as sufficient to eliminate those same concerns in the electricity sector. Consequently, the Commission decided to prohibit the proposed transaction.

Pedro Pires, Head of IR

Gonçalo Santos

Elisabete Ferreira

Cristina Requicha

Rui Antunes

Catarina Mello

Phone

Fax:

+351 210012834

+351 210012899