2006 Record results in a dynamic environment

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1 Aare-Tessin Ltd for Electricity Bahnhofquai 12, CH-4601 Olten Check against delivery 26 April th Annual General Meeting of Atel on 26 April Record results in a dynamic environment Giovanni Leonardi, CEO Ladies and gentlemen Esteemed Atel shareholders 2006 was another record-breaking year in Atel's history. On the one hand, our results exceeded all expectations. On the other hand, we were able to break new ground in both segments with various forward-looking projects. One clear focus was our entry into new renewable energies in Italy and Switzerland. A second focus was laying the groundwork for a new nuclear power station in Switzerland. At the same time, we worked with our shareholders to make further progress on the new West Energy Group. Reaching new highs As you heard from President Rainer Schaub, the figures for energy sales as well as revenue and profit are once again above the previous-year levels. Group revenue rose by 32 percent to around 11.3 billion francs and consolidated earnings by 118 percent to 899 million francs after special effects. In 2006, our revenue broke through the magical ceiling of 10 billion francs for the first time. In keeping with this, sales rose well above 100 TWh for the first time, to reach 116 TWh. The Atel Group has therefore reached two milestones that, five years ago, would have been considered utopian. Tel Fax info@atel.ch Internet

2 Page 2/6 Energy segment With revenue of billion francs, the Energy segment recorded an operating profit (EBIT) last year of billion francs following a figure of 715 million francs before special effects. Higher electricity prices meant that the respective revenues rose disproportionately by 38 percent. As in the previous year, internal growth was the primary driver of this increase. Much to our satisfaction, all market regions contributed to this strong revenue growth. Energy Switzerland business division The Energy Switzerland market performed well in Sales and margins rose, brought about by the positive economic environment and the long, cold 2005/2006 winter season. We were also able to broaden our sales base thanks to several interesting electricity trading transactions. Energy Southern/Western Europe business division penetrating the SME segment Italy continues to be a key market thanks to Atel s strong, established position. Our subsidiary, Atel Energia in Milan, was once again able to sign important contracts with major customers and consortia. With our acquisition of 51 percent of Energit, the multi-utility supply company in Sardinia, Atel penetrated the rapidly growing market of small and medium-sized enterprises in 2006, thereby expanding Atel Energia's customer base to include SMEs as well as major customers and consortia. In France, we were able to increase revenue significantly above the previous-year level and improve the result. Power plant project in France Furthermore we have submitted a project for the construction of a 400 MW gas-fired combined cycle power station on the edge of the Massif Central. With this move, we have taken another big step towards the goal of establishing our own generation facility in France. Provided the building permit is issued by the end of 2007, generation is scheduled to start in early 2010.

3 Page 3/6 Energy Northern/Eastern Europe business division The positive economic trend in 2006 continued across the entire region of Central and Eastern Europe. By founding local subsidiaries and obtaining local trade licences in all key countries, we have created the basis for further expansion of our trade and sales activities in the region. The power plants in Csepel, Hungary, and Kladno, Czech Republic, once again achieved high levels of availability and, consequently, good results. These results were augmented by the profits stemming from the Zlin power station in the southeast of the Czech Republic which was fully consolidated for the first time. At the end of 2006, we concluded negotiations for the acquisition of the remaining 11 percent of ECKG Kladno. A 43-MW gas turbine was also put into operation close to the existing power plant complex in the Prague region, allowing Atel to reinforce its position as one of the largest independent electricity and heating producers in the Czech Republic. The Northern Europe region made great strides in expanding its customer base, primarily in Germany, with the associated increase in electricity sales and revenue. Sales and trading activities were also expanded. Trading business unit The European-focused Trading business unit further improved its results in 2006, once more significantly exceeding the previous-year's high level, primarily due to spot trading, including cross-border activities. Asset trading activities also benefited from the extraordinary price situation thanks to optimised power plant deployment. Another favourable development was the substantial contribution to profit made by our recently established gas and coal derivative trading operations. Over and above physical transactions, revenue from trading transactions in standard financial products amounted to around 13.7 billion francs for a traded volume of 202 TWh.

4 Page 4/6 Energy Services segment Above-average figures At 1.6 billion francs, revenue recorded by the Energy Services segment was slightly above the previous-year level. The strong improvement in operating results was dampened by special effects arising from the sale of GA-tec. At 56 million francs, consolidated operating profit (EBIT) was below the previous year s figure. Adjusted for the GA-tec effect, however, EBIT for the segment was up a sizeable 14 percent compared to last year. Atel Installationstechnik Group (Zurich) Following on from the previous year, the Swiss Atel Installationstechnik Group (AIT) was able to further expand its position as the leading supplier of energy services in Switzerland thanks to major acquisitions. By purchasing Indumo AG and Luwa Schweiz AG, the ventilation and air-conditioning specialist, the group has optimally expanded its portfolio. GAH Group (Heidelberg) The GAH Group's two business fields recorded overall positive performance in 2006 with much stronger economic growth than in Both the Energy Transmission and Communications Technology division and the Industrial and Power Plant Engineering division benefited from higher investments. For instance, we are responsible for the piping in the turbine house of the new power plant currently under construction in Olkiluoto in Finland. Outlook Energy segment We are aiming to further expand trading and sales activities in all markets in the energy business. In line with this we anticipate further growth in sales volumes for 2007, primarily in Trading, Germany, France and Eastern Europe. On the other hand, we assume that competition will continue to intensify, that market prices will shift laterally and that, as a result, margins will tend to fall. We also expect a continued increase in transit costs through border capacity auctions as a result of additional restrictions and grid bottlenecks.

5 Page 5/6 As things stand at present, the energy segment results are not expected to match the extremely positive operating figures recorded in Energy Services segment Following the encouraging operating profit recorded by the Energy Services segment in 2006, we intend to leverage opportunities for the targeted, profitable further development of the segment. The good volume of orders on the books at the beginning of the year, coupled with the completion of reorganising measures, provide a solid foundation for achieving these goals. The Federal Council s decision on future energy policy has infused our Energy Services segment with new significance. Investments This year we also intend to identify and pursue strategically compatible and economically attractive opportunities to strengthen our business activities. First and foremost, we want to further boost our power generation capacity in the Energy segment. By making appropriate targeted investments, we will further expand trading and sales as well as energy services and maintain the high quality of the grid and infrastructure facilities. Atel Group The Atel Group expects to see sales and revenues continue to rise throughout the 2007 financial year, accompanied by a sizeable investment volume. Barring any unusual events, the operating results are expected to be below the outstanding results recorded in For Atel as a company, replacing existing nuclear power plants and constructing new ones in Switzerland has a special significance. Given the scarcity of resources and the environmental benefits, we cannot do without nuclear power. Atel has expressed this opinion unequivocally, time and again.

6 Page 6/6 So what comes next? The next step will be to create a consortium for project planning and construction of new nuclear power plants. This should be in place by the end of this year. At the same time, we are stepping up efforts to provide the documentation required for permit applications. We expect the respective proposals to be ready for submission in 2008 or Even though what will then follow is laid down in the law on nuclear energy, it is far outside our scope of influence. We are counting on the authorities and parliament to push through a quick review of the documents. Thank you Ladies and gentlemen, we can look back at an extremely successful and intensive financial year. You have all contributed to this success, whether as shareholders or customers, employees or board members. My warmest thanks to all of you. A special word of thanks goes to all employees. Their dedication and skills are what makes it possible to further develop our company to be successful. I would also like to extend special thanks to my colleagues on the Executive Board and, of course, to the Chairman of the Board of Directors. Not only have our concerted efforts proved successful; they have consistently been highly professional and congenial.