Substitution of issuer within the Alpiq Group

On 16 December 2010, the Board of Directors of Alpiq Holding Ltd. approved a resolution that Alpiq Holding Ltd. will assume the obligations as debtor in respect of the bonds issued by Alpiq Ltd., formerly Aare-Tessin Ltd. for Electricity, and Alpiq Suisse Ltd., formerly Energie Ouest Suisse SA. On 31 December 2010, the three outstanding bonds issued by Alpiq Ltd., totalling CHF 800 million, and an outstanding CHF 125 million bond issued by Alpiq Suisse Ltd. will be transferred to Alpiq Holding Ltd. by way of substitution of issuer in accordance with the terms and conditions of the bonds. Pursuant to the terms and conditions of the bonds, certain bonds will be guaranteed by the previous debtors.

With this move, Alpiq is taking another major step in its announced programme to simplify its financial structure and is improving transparency in the capital market. When Alpiq Holding Ltd. assumes the obligations as debtor, the Group’s two former principal companies will no longer have any securities listed on the SIX Swiss Exchange. The lead banks are expected to publish the required notices in respect of the substitution of issuer on 30 December 2010.