Electricite de France S.A. (EDF), a European energy company, has reported group sales of EUR21.1 billion for the first quarter of 2009, up 15%, compared with the group sales of EUR18.3 billion in the year-ago-quarter. The company has reported total sales in France of EUR11.2 billion for the first quarter of 2009.

The EDF Group posted organic sales growth of 12.5%. This growth was primarily driven by pricing and tariff changes that took place in 2008, mainly overseas. The impact of the current economic slowdown on electricity volumes sold to industrial clients remains limited at this stage. In France, the consumption surplus that can be attributed to colder weather conditions in January 2009 and February 2009 mitigated the impacts of the crisis on electricity consumption. In Italy and Germany, the volumes of natural gas sold also increased due to weather conditions.

Sales generated by the Group outside France represented 46.8% in the first quarter of 2009 (41.9% in the first quarter of 2008) and include the contribution of British Energy’s first quarter 2009 sales.

In France, the 5.2% organic sales growth recorded reflects changes in electricity volumes, in electricity tariffs that took place in August 2008 and the price effect on the previously contracted capacity auctions.

Electricity volumes sold to end user clients increased by 4.2 TWh (+3.6%) in the first quarter of 2009, driven by strong household consumption. Excluding the effect of climate3, the volumes of electricity sold to end customers fell slightly by 2.7 TWh. In particular, the impact of the sharp decline in industrial activity is estimated to amount to 3.5 TWh.

Electricity output increased by 3 TWh (+2%), on the back in particular of hydropower.

Sales of natural gas and services continued to grow and contributed to a lesser extent to sales growth.

In the UK, sales totalled EUR3.3 billion, representing organic growth of +24.5%. This growth was mainly driven by price increases in EDF Energy’s generation and sales activities that occurred in 2008, in electricity and, to a lesser extent, natural gas. The number of residential clients increased slightly. On February 13, 2009, EDF Energy announced an 8.8% average decrease in electricity prices, effective March 31, 2009. Sales of EDF Energy’s network activities were practically stable.

first quarter 2009 sales include the impact of the consolidation of British Energy in the Group’s financial statements (EUR896 million). This company posted a sharp growth in generation at the beginning of the year due to the recommissioning of the Hartlepool and Heysham 1 power stations and improved nuclear availability.

Sales in UK also include a negative exchange rate effect of EUR334 million due to the appreciation of the euro against sterling.

In Germany, EnBW’s quarterly sales amounted to EUR2.2 billion, representing organic growth of 10.4%, driven mainly by the growth in gas activities, which progressed substantially (+36%), mainly due to the price effect on redistributors and increased volumes sold to end user clients as a result of colder weather conditions.

In electricity, growth was driven by the repercussions on prices of increased sourcing costs. This price effect offset the 2.1 TWh reduction in volumes sold, which is 14% of volumes sold to industrial clients mainly as a result of the economic slowdown.

In Italy, quarterly sales totaled EUR1.6 billion, representing organic growth of 17.1%. Edison’s quarterly sales amounted to EUR1.5 billion, representing organic growth of 20.7% and were driven by growth both in electricity and gas activities.

In electricity, growth benefited from a positive price effect associated with a sales campaign directed at end user clients, with prices set above those in effect during the first quarter of 2008. Volumes sold were up slightly, due to the development of trading activity and sales to end user clients. Excluding trading activity, electricity volumes sold were down by 3.2 TWh, due to the economic slowdown, reduced sales on IPEX and less demand from power stations.

In gas activities, the rise was driven by residential client prices and the growth in volumes sold due to the colder weather conditions.

Fenice’s sales were down sharply, because of the drop of activities of its main customer.

Quarterly sales for the Other International4 segment totalled EUR899 million, representing organic growth of 21.6%, which was driven by price effects. Sales of Central and Eastern European subsidiaries account for two thirds of this segment. Growth was driven by a favourable price effect – which occurred in 2008 – on natural gas in Hungary and electricity in Poland. Sales were subject to an unfavourable exchange rate effect due to the depreciation of the zloty and forint against the euro.

2009 objectives

Following this first quarter of activity, the Group confirms its objectives for 2009: 2009 Group EBITDA should be boosted by the consolidation of newly acquired activities, in particular British Energy. Excluding changes in scope and exchange rates, EDF should record a moderate EBITDA growth (excluding the impact on 2008 fiscal year of the extension of TaRTAM by the Law of August 4, 2008). 2009 net income excluding non recurring items should not exceed that of 2008. As of end of March 2009, the Group overwall performance resists well in a very difficult European economic context.

The Group’s priority for 2009 is organic growth and the strengthening of its financial structure, consistent with a strong rating. As such, the Group is committed to an asset disposal programme which, at the end of 2010, will have an impact on net financial debt of at least EUR 5 billion, which will complement the net proceeds of the transaction with Centrica.

Highlights

May 2009

Centrica to invest with EDF in nuclear business in the UK. EDF to acquire controlling stake SPE from Centrica.

EDF Group and Centrica plc announced that they have reached a definitive agreement whereby Centrica will invest in EDF’s nuclear business in the UK encompassing the current British Energy nuclear power station fleet and the development and construction of the next generation of nuclear power stations which will be central to securing the future electricity requirements of the UK.

Centrica will acquire a 20%. interest in British Energy, the operator of eight existing nuclear power stations of which EDF acquired control in January 2009. EDF and Centrica will also form an 80/20 joint venture to pursue a planned programme to build four new nuclear power stations in the UK. Finally, the EDF group will acquire Centrica’s 51% stake in Belgian generation and supply business SPE.

Details of the EPR project on the Penly site in Seine Maritime have been provided on May 1, 2009. It would be run by EDF, as part of a company for the project with a capital breakdown as follows:

EDF will hold 50% plus one share of the capital and GDF Suez an Total will hold 33.33% plus one share.

The French Prime Minister announced in a press release dated May 1, 2009, that the project company responsible for constructing the second EPR-type nuclear reactor in France run by EDF on the Penly site in Seine Maritime would be owned by EDF, in the amount of 50% plus one share, and by GDF Suez in the amount of 33.33% plus one share. EDF will decide on the participation of other utilities in the project, notably through the remaining 16.66% share in the project’s capital. Moreover, GDF Suez indicated that they had suggested to Total that the company should take part in the project.

April 2009

UK: auction for the sale of land to be used to build nuclear power plants Following the auctions held in accordance with the Simultaneous Marketing Agreement agreed with Nuclear Decommissioning Authority (NDA), the land owned by EDF at Wylfa was sold on April 29, 2009 to the RWE/E.ON consortium. Under the same auctions, EDF Development Company Limited, an EDF Group subsidiary, purchased NDA’s land in Bradwell.

On April 27, 2009, the Champsaur Commission submitted its report on the organization of the electricity market in France to the Ministries of the E