Litigation settlement (Electrica - EFSA)

To: Bucharest Stock Exchange (BVB)

Romanian Financial Supervisory Authority (ASF)

London Stock Exchange (LSE)

Current report in compliance with the Law 24/2017 on issuers of financial instruments and market operations, ASF Regulation no. 5/2018, and the Bucharest Stock Exchange Code

Report date: 24 June 2019

Company name: Societatea Energetica 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:

Settlement of the litigation between Electrica and Electrica Furnizare SA

Electrica informs that on 20 June 2019 the Bucharest Court rejected the request filed by Electrica Furnizare SA ("EFSA") against the mother company Societatea Energetica Electrica SA ("Electrica") in the file no. 2869/3/2019 (announced on 19 March 2019 through the current report published on BSE - IRIS code 1252D and on LSE - RNS number 3500T). The claims requested by EFSA amounted to RON 17,274,162, representing the value of the invoices paid by EFSA in the absence of supporting documents, as noted by the Court of Accounts through Report no. 2835 / 17 May 2013 and Decision no. 20 / 17 June 2013, as well as the payment of the related legal interest.

The decision is not final and it may be appealed within 30 days from its communication.

Chief Corporate Governance and M&A Officer

Alexandra Borislavschi