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Vattenfall Treasury (BM93)

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Thursday 27 September, 2001

Vattenfall Treasury

Stmnt re Neue Kraft Formation

Vattenfall Treasury AB
26 September 2001

VATTENFALL CONTINUES TO BUILD 'NEUE KRAFT' IN GERMANY

Despite the fact that the co-operation with Mirant has been discontinued, 
Vattenfall is to continue the formation of 'Neue Kraft' on the German energy 
market together with the City of Hamburg.  The Berlin company Bewag will not be 
involved in the integration process as yet.

At the second 'Neue Kraft' shareholders' meeting, held Wednesday in Berlin, 
Mirant informed Vattenfall and the City of Hamburg, that they want to 
discontinue the partnership in building 'Neue Kraft'.  The joint management of 
Bewag, which is stipulated in an agreement between HEW and Mirant, will 
continue. Vattenfall remains committed to Bewag.

'The door will always remain open for Bewag to join the 'Neue Kraft', said 
Vattenfall's President and CEO Lars G. Josefsson.

Vattenfall remains convinced that the creation of 'Neue Kraft' even without 
Bewag is an attractive concept, which has been developed in a natural way out of
the upheavals on the German energy market.  Vattenfall did not manage to reach 
agreement with Mirant on the continuation of the integration process.

'In the light of the dynamic development of the German energy market it is clear
that the formation of 'Neue Kraft' must not be further delayed.  It must 
promptly position itself and enter into the competition for the customers,'  
says Lars G. Josefsson.

Vattenfall and the City of Hamburg will now immediately begin planning the 
realisation of 'Neue Kraft' without the participation of Mirant.  They do not 
discount the possibility that Bewag can once again become part of 'Neue Kraft' 
at a later date.

Vattenfall currently owns 73.8 per cent of HEW, which in turn owns 81.25 per 
cent of VEAG, 92.5 per cent of Laubag and approximately 45 per cent of Bewag.  
Mirant also has a 45 per cent holding in Bewag.

From Vattenfall's Press Office, tel:  08-739 50 10

For further information, please contact:

Karl-Erik Olsson, press officer, Vattenfall, telephone +46-70-538 81 38
Martin May, Vattenfall Deutschland GmbH, tel: +49-40-374722-14, +49-172-4291248

Vattenfall's vision is to be a leading European energy company.  The Nordic 
region, Poland and Germany are its domestic markets.  Today, Vattenfall 
generates power and supplies energy solutions to several million customers in 
the Nordic region and northern Europe.  The largest electricity customers are 
industrial plants and energy companies.  Vattenfall's main products are 
electricity, heat and natural gas, as well as network, consulting and 
maintenance services.  The Group's net sales in 2001 are calculated to around 
SEK 70 billion.



                                                                       

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