Press Release

Globeleq Enters Distribution Business in Uganda

March 1, 2005 - Globeleq, the emerging markets power company, announced today that Umeme Ltd, jointly owned by Globeleq and Eskom Enterprises, has begun operating the electricity distribution system in Uganda under a concession agreement with the Government of Uganda.
The Government of Uganda was advised by Fieldstone Private Capital Group London and South Africa offices. Fieldstone is specialist international power and infrastructure investment bank.

The Fieldstone team was led by Alan Muir, a managing director based in the London office.

Umeme will manage and operate the electricity distribution system in Uganda for 20 years based on the concession agreements signed in May 2004. The electricity distribution network will be leased from the Ugandan Electricity Distribution Company Limited (UEDCL), an entity of the Government of Uganda. Umeme will invest capital to improve the network infrastructure and establish new connections. UEDCL will continue to run the rural electrification schemes across the country.

Torbjorn Caesar, Executive Vice President of Globeleq for Africa, said: "Our investment in power distribution in Uganda is a first for Globeleq and reflects our commitment to the emerging markets. We are very excited about helping to improve the safety and reliability of electricity delivery to the people of Uganda.
Paul Mare, General Manager of Umeme, explained: Over the past 10 months, the Umeme management team has worked closely with UEDCL to understand the business and identify areas to improve. We aim to be the leading electricity distribution company in East Africa by 2010, providing safe, reliable electric service to consumers in Uganda."

Umeme is 56% owned by Globeleq and 44% by Eskom Enterprises, the non-regulated entity of the South African electricity utility.