Agreement for sale of the Thermoelectric plant of Priolo Gargallo to ENEL

Genoa, 9 Feb 2022 - Today ERG, through its subsidiary ERG Power Generation SpA, agreed with Enel Produzione SpA to sell the entire share capital of ERG Power Srl. The latter owns the low environmental impact and high-efficiency Combined Cycle Gas Turbine (CCGT) cogeneration plant fuelled by natural gas at Priolo Gargallo, in the province of Syracuse. With an installed capacity of 480 MW, the average annual production is around 2.4 TWh.

The fee in terms of Enterprise Value, as of 31.12.2021, is Euro 188 million and will be subject to a price adjustment at the closing. This will include, among other things, a monthly décalage mechanism consistent with the expected cash flows of the business plan. It will also include the mark-to-market valuation of some hedging derivatives included in the scope and relating to part of the energy produced in the future by ERG Power's plants.

One hundred and forty-four people run the plant, which is included within the scope. The staff includes technicians highly specialised in the operational management of the plants, energy management specialists and dedicated staff. Regarding these resources the Company reached - thanks to the constructive cooperation with the national trade unions and the willingness of the buyer - an innovative agreement for the electricity sector that provides essential protections.

Subject, among other things, to the approval of the Italian Antitrust Authority and the successful completion of the golden power procedure at the Italian Presidency of the Council of Ministers, the deal should be closed within the third quarter of 2022.

Paolo Merli, ERG's Chief Executive Officer, commented: "We are satisfied with the agreement with Enel, who are a leading global energy group with a consolidated industrial position in Italy. This is because it offers the best guarantees in terms of reliability for integrating our personnel and fully enhancing the asset. With this transaction, ERG completes its business transformation into a pure 'wind & solar' model and continues along the path of decarbonisation envisaged in the ESG plan. The financial resources from the divestment of the Hydro and CCGT plants will be used to give new impetus to the Group's growth".

Rothschild & Co. and Mediobanca jointly acted as financial advisors in the transaction. DLA Piper acted as legal advisor, Ernst & Young as accounting and tax advisor, Arup as technical advisor and Ref-e as market advisor.

This press release, issued on 9 February 2022, is available to the public at Borsa Italiana SpA, on the authorised eMarket Storage mechanism (www.emarketstorage.com) and the Company's website (www.erg.eu) in the 'Media/Press Releases' section.

ERG contacts:

Emanuela Delucchi Chief ESG, IR & Communication Officer – tel. + 39 010 2401806 – e-mail: edelucchi@erg.eu - ir@erg.eu

Anna Cavallarin Head of External Communication - tel. + 39 010 2401804 mobile + 39 3393985139 e-mail: acavallarin@erg.eu

Matteo Bagnara Head of Investor Relations - tel. + 39 010 2401423 – e-mail: ir@erg.eu