Authorized the liquid waste treatment plant in Nera Montoro (TR)

• The A.I.A. authorisation emitted by the Provincia di Terni will allow the processing of 58,000 cubic meters/year of input waste, represented by liquid waste and pumpable sludges
• Planned investment of approximaately € 3 million for the construction of the new plant
• Integration of the press release of February 27, 2015 regarding the Merger by Incorporation in TerniEnergia of the wholly owned company Lucos Alternative Energies SpA

Terni, March 3, 2015

TerniEnergia, smart energy company active in the fields of renewable energy, energy efficiency, waste and energy management, listed on the Star segment of the Italian Stock Exchange and part of Italeaf Group, announces that the Provincia di Terni has been granted the “Integrated Environmental Authorisation (AIA) n. 11458/2015” related to the “Operational plan for groundwater remediation of the industrial site of Nera Montoro (TR) – adjustments to the requirements and implementation of the plants with the introduction of new sections of treatment of the liquid waste with third parties”.

In particular, the obtaining of the Authorizations allow TerniEnergia to complete the investment to improve the biological and chemical-physical plants already active, to be compliant to the requirements of the remediation project of groundwater of Nera Montoro industrial area, approved by the Regione of Umbria in April 2011 (with emissions and characteristics quality of the “deep water”).

Finally, through the AIA authorisation, TerniEnergia will have the opportunity to realize the expansion of the processing capacity of the existing plants, through the construction of a new treatment plant with the aim to start the business of processing of special liquid waste (eg. Agricultural, industrial, organic chemicals and inorganic, etc.). The authorization allows the treatment of 58,000 cubic meters/year of waste input, represented by liquid waste and pumpable sludges. The capex for this additional investment is approximately € 3 million and will make possible to build new plant equipment of high quality inserted in the “green industry area” of Nera Montoro (TR), intercepting liquid waste streams and at the same time answering the industrial needs of the center of Italy.

With reference to the Merger by Incorporation of Lucos Alternative Energies in TerniEnergia, communicated to the market on February 27, 2015, TerniEnergia announces complementing the earlier press release as follows:

The counterparty of the transaction is a related party, because it is a subsidiary of TerniEnergia and it is wholly owned by the same. The name of the counterparty of the transaction is Lucos Alternative Energies SpA. The merger falls within the cases of exclusion from the application of the procedures regarding transactions with related parties with respect to transactions with subsidiaries, as permitted under Article 14 paragraph 2 of Consob Regulation no. 17221/2010. In particular, the company has used the case of exclusion art. 8 letter e) of the Procedure for Related Party Transactions. The transaction was approved by the Board of Directors met on February 27, 2015.