VERBUND AG / Key word(s): Legal Matter/Change in Forecast
20-Dec-2016 / 16:54 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

---

VERBUND AG's management is today announcing the imminent settlement of all outstanding matters associated with the agreement with Energie Steiermark to supply district heating from the Mellach power plants site.
VERBUND will in this regard erect a boiler plant at the Mellach site which is intended to satisfy the district heating supply agreement. As a result, VERBUND is giving itself the opportunity to close the Mellach hard coal power plant even earlier than in 2020, in line with its strategic focus on CO2-free electricity generation.

VERBUND is continuing to evaluate all the options for the Mellach combined cycle gas turbine power plant which is also located at the Mellach site.
The parties have agreed not to disclose any further details of the settlement.

Based on the effects of this settlement and accounting measurement effects, VERBUND AG's management is increasing its earnings forecast for 2016. Assuming average water and wind supplies to the end of the year, VERBUND will achieve EBITDA of approximately EUR1,010m (previous forecast: EUR980m) and a Group result of approximately EUR410m (previous forecast: EUR385m). The adjusted 2016 Group result will remain unchanged at approximately EUR315m as the settlement and the accounting measurement effects are defined as non-recurring effects.

For additional information please contact
Mag. Andreas Wollein
Head of Group Finance and Investor Relations
Tel.: +43(0)50313-52604
Fax: +43(0)50313-52694
investor-relations@verbund.com

---

20-Dec-2016 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

---

     Language:    English
     Company:     VERBUND AG
                  Am Hof 6A
                  1010 Wien
                  Austria
     Phone:       0043-1-53113-52616
     Fax:         0043-1-53113-52694
     E-mail:      investor@verbund.com
     Internet:    www.verbund.com
     ISIN:        AT0000746409
     WKN:         877738
     Indices:     ATX
Listed: Foreign Exchange(s) Wien (Amtlicher Handel / Official                   Market)



     End of Announcement    DGAP News Service