07.11.03

7.11.2003: Meldung: NEG Micon: A billion order for 2004, but profit warning

NEG Micon has received two orders for a total of 105 wind turbines of the types NM72 and NM82 for delivery in New Zealand and Australia, respectively. The total value of the orders amounts to approx. DKK 1.1b (approx. EUR 150m). The turbines are expected to be delivered in 2004. The orders constitute the first part of a framework agreement of up to 600MW which NEG Micon has at the same time entered into with the largest utility in New Zealand, Meridian Energy Ltd. The order for New Zealand comprises 55 NM72 IEC I turbines, each with a nominal output of 1,650kW, and is for the Te Apiti project in the northern part of New Zealand near Wellington. The order for Australia is conditional and comprises 50 NM82 turbines, each with a nominal output of 1,650kW, and is for the Wattle Point project in Yorke Peninsula in South Australia.

Profit warning
NEG Micon has to accept the fact that the delays and postponements, which have characterized the Market Divisions Germany and International during most of the year, have continued. The expectations for this year"s result of the two divisions have thus been heavily reduced, and there is still a considerable uncertainty about NEG Micon"s deliveries to the German market this year. The uncertainty is aggravated by the fact that there is still uncertainty regarding the future German settlement scheme for wind energy. It is now estimated that NEG Micon"s result before tax and minority interests for 2003 will be a loss of DKK 300-500m (EUR 40-67m), whereas the cash flow from operations is estimated to be neutral. The expected decrease in the result is primarily due to fewer and forced deliveries in 2003 and is aggravated by a consequently inappropriate production planning in the units of the Group. As previously announced the volume of conditional as well as unconditional orders for delivery in 2004 is at a historically high level, but the effect on the result this year is very limited as sales orders in progress are held at a minimum.

Capital increase
The Board of Directors will recommend to the shareholders of the company that a capital increase be implemented with proceeds in the order of DKK 1b (EUR 135m) with pre-emption right for the existing shareholders. The capital increase is to ensure that NEG Micon has the necessary financial strength in the future wind turbine market and thus the necessary reliability with financial institutes and customers. The more specified process will be determined in consultation with the advisers of the company.

Conference call
NEG Micon will host a conference call concerning the above today at 10:00 a.m. (CET). The conference call will be held in English. Interested parties from Denmark may call tel. +45 3271 4611, interested parties from the rest of Europe may call tel. +44 (0) 20 7162 0182, and interested parties from the US may call tel. +1 334 323 6203. It will subsequently be possible to listen to the conference call at www.neg-micon.com.


NEG Micon A/S
Jørn Ankær Thomsen Torben Bjerre-Madsen
Chairman President
Any questions may be addressed to the President, Mr Torben Bjerre-Madsen, telephone No +45 8710 5000.
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