Federal Banking Commission's decision on the Motor-Columbus public exchange offer

In a decision dated 3 May 2006, the Swiss Federal Banking Commission has ruled that the public exchange offer of Atel shares for Motor-Columbus shares combined with the planned reverse merger of MC and Atel does not comply with the Swiss Stock Exchange Act. This decision is the result of an intervention by an Atel minority shareholder, who had challenged the Swiss Takeover Board's recommendation that the combination was permissible under the Stock Exchange Act. Atel, together with the consortium partners, will now review this decision and then consider further action.

The public exchange offer and merger of Atel with Motor-Columbus constitute individual stages of a comprehensive transaction aimed at bringing together Atel and the operational activities and assets of EOS under a new holding structure. Electricité de France (EDF) also intends to incorporate its Swiss activities in the new company. The Swiss Federal Banking Commission's decision on the terms and conditions of the transaction has no effect on execution of the overall transaction.

Motor-Columbus Ltd