Cease of Negotiations with FP

To: Bucharest Stock Exchange

Romanian Supervisory Authority

London Stock Exchange (LSE)

Current report in compliance with the Romanian Capital Market Law no. 297/2004 and CNVM Regulation no. 1/2006 on issuers and operations with securities

Report date: 28 March 2016

Company name: Societatea de Distribuţie şi Furnizare a Energiei Electrice - "ELECTRICA" S.A.

Headquarters: 9 Grigore Alexandrescu Street, 1st District, Bucharest, Romania

Phone/fax no: 004-021-2085999/ 004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

Subscribed and paid in share capital: RON 3,459,399,290

Regulated market where the issued securities are traded: Bucharest Stock Exchange (BVB) and London Stock Exchange (LSE)

Significant events to be reported:

Negotiations with Fondul Proprietatea (FP) regarding a potential acquisition of the participations held by it in the distribution and supply subsidiaries

According to the mandate given by the Extraordinary General Meeting of Shareholders (EGMS) through resolution no. 3 of 10 November 2015, the Board of Directors of Societatea de Distribuţie şi Furnizare a Energiei Electrice - "ELECTRICA" S.A. (Electrica) was empowered to negociate with Fondul Proprietatea (FP) in relation to a potential acquisition by Electrica of the minority participations held by FP in the following subsidiaries: FDEE Electrica Distribuţie Muntenia Nord S.A., FDEE Electrica Distribuţie Transilvania Sud S.A., FDEE Electrica Distribuţie Transilvania Nord S.A. and Electrica Furnizare S.A. (Transaction).

Electrica hereby informs its shareholders and investors that the negotiations between Electrica and FP in relation to the Transaction were ceased, since no consensus was reached regarding the Transactions' price.

Electrica's last firm non‑negociable price, from 24 March 2016, was of RON 790 million (equity value), in line with the firm offer received from FP in March 2015, and with the recent discussions. Today, 28 March 2016, FP sent Electrica a letter through which it declines this offer. We mention that FP asked for a price of RON 875 million (equity value).

Electrica always aims to satisfy the interests of its shareholders and investors. In order to ensure an effective communication, Electrica will inform shareholders and investors, as per the mandate given by the EGMS, on the economic argumentation supporting its offer.

General Manager

Iuliana Andronache