Axpo can look back on a pleasing first half of its financial year 2007-08 (1.10.07 - 31.3.08). Electricity supply sales were 5.4 % higher than last year, while the company's trading figures reflect the particular contribution of expanding energy derivatives trading. At CHF 458 million, operating profit (excluding special effects) almost matched last year's excellent figure of CHF 481 million. By contrast, EBIT was down to CHF 463 million, compared with CHF 934 million in the same period last year. Net profit fell to CHF 376 million (last year: CHF 890
million).

In the first half of 2007-08, Axpo achieved 42 482 million kilowatt-hours of electricity sales, 19.2% below last year's figure. The reason for the fall was the continuing shift from conventional physical electricity trading to energy derivatives trading, shown net (arbitrage and hedge deals and emissions trading). By contrast, electricity supply sales in the winter half-year were 5.4 % higher than last year, due to good economic conditions and colder weather. Axpo's total performance at 31 March 2008 stood at CHF 4 265 million (- 8.3 %). Turnover from the electricity business was down 12.7 % on the same period last year, to CHF 3 878 million. On the other hand the company's involvement in energy derivatives trading increased significantly. The financial proceeds of this activity rose from last year's CHF 61 million to CHF 196 million.

At operating level, Axpo continued to make sensible use of high prices and the opportunities they bring. However, both EBIT at CHF 463 million and net profit for the first half at CHF 376 million were clearly below last year's figures of CHF 934 and 890 million respectively. Last year's first half reflected special effects of production plant valuation, which strongly boosted profit (+ CHF 483 million) whereas, in the current financial year, the stock market has seen a downward trend in the value of the federal decommissioning and waste disposal funds, which has depressed the company's result (CHF - 115 million). Before adjustment for special effects, the operating profit of CHF 458 million was close to last year's excellent CHF 481 million.

At the end of March 2008, Axpo's balance sheet total was up CHF 374 million to CHF 15 154 million (+ 2.5 % since close on 30 September 2007). The main reason for this increase was the expansion of the company's trading business in energy derivatives (higher positive and negative repurchase values). As for equity, unrealized losses from the negative trend on the equity markets had to be entered against the company's securities. As a result, the equity portion of the balance sheet total was down 1.2 % to 47.6 %, though the group's finances remain on a very firm footing. Cash flow from business activity reached a pleasing level of CHF 302 million in the first half of 2007-08. This covers the high net investment in capital assets of CHF 247 million, which resulted in a positive free cash flow of CHF 55 million.

Prospects
Allowing for adjustment for special factors, Axpo expects net profit of the order of magnitude of last year's excellent figure.

Axpo will announce its annual profit at the media conference on its accounts on 22 January 2009.

Further information:
Axpo Holding AG Corporate Communications
Daniela Biedermann, tel. 044 278 41 20
Beat Römer, tel. 044 278 41 15