TerniEnergia increased up to 62% shares in Lucos Alternative Energies

• Signed and paid the first tranche of Capital increase  and performed the  sale of shares expected by the frame agreement
• Used the entire package of own shares acquired in the transaction of buy back
• The operation is part of the new Business Plan 2011-2013 to speed up the growth in energy efficiency

TerniEnergia  a company active in the renewable Energy field and listed on Star Segment of Borsa Italiana, announces to have carried out the subscription and payment of the first tranche of di Lucos Alternative Energies S.p.A. capital increase by payment amount, with exclusion of pre-emption right pursuant to Articles  2441, fifth paragraph of the Civil Code, and have performed the sale of shares expected by the frame agreement signed with Lamse S.p.A., Lofin S.r.l., Angelo Casolaro, Andrea Marano and  Raffaele Maria Mellone on August, 9^th, 2011 (members), as a follow-up released to the Market on August 9^th, 2011 and on September 27^th, 2011.

Notably, TerniEnergia subscribed and paid the first tranche of the capital increase equal to  Eur 1 Million  resolved by Lucos Alternative Energies S.p.A for a total amount equal Eur 2,5 million,  by issuing n. 348.675 new shares  with a nominal value of  Euro 1,00 each , at a subscription price of  Eur 7,17 for each new share to be reserved for subscription by TerniEnergia S.p.A..

In addition to this, TerniEnergia has acquired a total quantity of  339.432  Lucos shares , for an amount equal to Eur 2,43 million. TerniEnergia transferred to current members 281.101 own shares  for a unit value equal to the average  price recorded in the 5 trading days  of Borsa  preceding the date of execution (Enhancement of Eur 2,358888), corresponding to a total value equal to Eur 663.086. By signing the agreement, TerniEnergia paid to current members the cash amount equal the difference  between the price of Shares  and Enhancement  of TerniEnergia’ shares corresponding to Eur 1,77 million.

Downstream  of the signing of the first tranche of Capital Increase  and of such sale of shares by TerniEnergia, Lucos Alternative Energies’s shareholding group is composed  by:

In order to complete the operation, TerniEnergia used the entire package of own shares in the portfolio to date acquired during the buy back operation approved  by the Shareholders meeting dated September 1st, 2009.

The acquisition of Lucos Alternative Energies byTerniEnergia is part of activities designed to anticipate  to 2011 the company entry into the new business of Energy efficiency for industrial cycles as provided in the updated business plan 2011-2013, presented to the market last September 27^th.

Lucos Alternative Energies, with a specialized sales network and focused on key regions of central and northern Italy  and with a dedicated engineering structure, is active (directly and through its subsidiaries) in the field of energy efficiency through public and private counterparts through the provision of services  Energy Saving Company (ESCO). As at December 31st, 2010 the Group achieved  a turnover of Eur 1,7 million,  Ebitda  equal to Eur 1,1 million and a net profit equal to Eur 0,4 million.

In the field of energy efficiency, Lucos Alternative Energies has developed, among others, Energy saving measures in public light in several italian municipalities and created covenants  and partnerships with operators and suppliers of the sector  to access selected projects and public and private  medium-large call for bids. The company has also developed a specific know-how and a “pipeline” of replicable projects.

Lucos Alternative Energies, holds:

1. A share of 70% of the share capital of LytEnergy S.r.l., which is active in Energy efficiency for public lighting;
2. A share of 50% in the company Enerflus S.r.l., operating in the management of Energy Efficiency Certificates (TEE).