Ad hoc notification in accordance with Section 15 WpHG (German Securities Trading Act): EnBW pre-tax result in the first half year of 2003 impacted by "legacy burdens" in excess of EUR 1 billion

The potential impact on earnings presented in the ad-hoc announcement from July 3, 2003 has been confirmed and defined more closely by the half-year figures.

The result of the first half year of 2003 reflects substantial one-off burdens. In the energy and environmental services segment, the non-recurring effects related to impairment losses and risk provisions, primarily in the thermal disposal area amounting to EUR 283 million, and the discontinuing activities of the Salamander group amounting to EUR 195 million. The result in the core business segment electricity was impacted in particular by write downs of several investments on account of impairment tests (particularly Stadtwerke Düsseldorf AG with EUR 208 million), valuation allowances in the area of capital investments, expenses for personnel-related provisions and one-off selling expenses. These factors mainly stem from problem areas rooted in the past, so-called "legacy burdens" that have to be reflected in the earnings or external reporting now. They are largely of a non-recurring nature without a sustained effect on the core operating business, and to a large extent will not effect liquidity.

The non-recurring burden on earnings before taxes in the first half year of 2003 comes to approx. EUR 1.1 billion. As things stand today, a further drain on earnings of nearly EUR 200 million is expected for the second half year. The pre-tax result for the whole of 2003 is estimated at around minus EUR 1 billion.

Adjusted to eliminate one-off burdens on the EBITDA of some EUR 525 million, the half-year figures do, however, at the same time evidence a stable operating result in the core business segments electricity and gas. Adjusted for one-off effects, the EBITDA has risen by around 30 percent. The beginning of the second half year 2003 sees the start of extensive restructuring in the group. The TOP-FIT programme to cut costs and enhance profitability, that is to run until 2006, will also have a positive impact on earnings in the current business year.

Information and explanations of the issuer on this ad-hoc announcement:

This document contains forward-looking statements based on current assumptions and forecasts made by EnBW management. Such statementsare subject to risks, uncertainties. These and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.