BUENOS AIRES, Argentina, Aug. 10 /PRNewswire-FirstCall/ -- Empresa Distribuidora y Comercializadora Norte S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) ("EDENOR" or "the Company"), Argentina's largest electricity distributor, today announced its results for the six months ended June 30, 2007 (first half of 2007). All figures are stated in Argentine Pesos and have been prepared in accordance with Argentine GAAP. Solely for the convenience of the reader, Peso amounts as of and for the six-month period ended June 30, 2007 have been translated into U.S. Dollars at the buying rate for U.S. Dollars quoted by Banco de la Nacion Argentina (Banco Nacion) on June 30, 2007 of Ps. 3.093. 1H07 Highlights -- Net Sales increased 59.2% to Ps. 1,066.0 million in the first half of 2007, compared to Ps.669.8 million in the first half of 2006, mainly due to the application of the increase in our distribution margin (VAD) from February 1, 2007 and the recording of the retroactive portion of the VAD increase charged to our non-residential customers for the period from November 1, 2005 through January 31, 2007, which totals Ps. 218.6 million. As of June 30, 2007 we had already invoiced Ps. 20.6 million of that amount while Ps. 198.0 million remains unbilled. Excluding the unbilled amount of retroactive portion of the VAD increase, net sales in the first half of 2007 would have been Ps. 868.0 million, representing a 29.6% increase compared to the same period of 2006. This increase is also driven by an increase in the volume of energy sold compared to the first half of 2006. -- Volume of Energy Sold increased 9.6% to 8,892.3 GWh in the first half of 2007, compared to 8,114.8 GWh in the first half of 2006. This increase was due mainly to a 7.8% increase in average GWh consumption per customer and to a 1.8% increase in the number of customers. -- Gross Margin increased 117.3% to Ps. 622.7 million in the first half of 2007, compared to Ps. 286.6 million in the same period of 2006. This increase is also largely due to the increase in net sales attributable to the application of the VAD increase and the recording of the retroactive VAD adjustment, as described above. Excluding the unbilled amount of retroactive tariff portion of the VAD increase, our gross margin would have been Ps. 424.7 in the first half of 2007 representing a 48.2% increase when compared with the same period of 2006. -- Net Operating Income increased significantly to Ps. 322.7 million for the six months ended June 30, 2007, compared to Ps. 19.9 million in the same period of 2006. In the first half of 2007, net operating income was positively affected by the application of the VAD increase and the recording of the retroactive VAD adjustment (Ps. 218.6 million). Excluding the unbilled amount of retroactive tariff portion of the VAD increase, net operating income for the first half of 2007 would have amounted to Ps. 124.7 million (an increase of 526.6% compared to the first half of 2006). -- Net Income reached Ps. 114.8 million in the first half of 2007, compared to Ps.404.2 million in the first half of 2006. In the first half of 2007, net income was positively affected by the application of the VAD increase and the recording of the retroactive portion of the VAD increase, which were partially offset by the accounting impact of our net exchange losses (Ps. 11.6 million) related to our debt (which is denominated in US dollars), the adjustment to present value of the retroactive portion of the VAD increase and certain trade receivables (Ps.36.7 million), the adjustment to present value of our restructured debt (Ps.27.8 million) and the recording of a non cash tax charge (Ps. 89.9 million) generated by a significant increase in our taxable income, which partially offset our tax loss carry forward allowance booked in 2006. In the first half of 2006, net income was positively affected by the gain resulting from our debt restructuring, including the adjustment to present value of the restructured debt (Ps. 266.8 million) and the recognition of the partial reversal of the valuation allowance of our net deferred tax assets (Ps. 189.2 million). Comments from the Chief Executive Officer Alejandro Macfarlane, the Company's Chief Executive Officer, stated, "During the first half of 2007 we were able to grow our sales and expand margins, not only from the VAD increase which took effect in February 1, 2007, but also from the increase in the volume of energy and capacity sold." "Regarding our Integral Tariff Revision (RTI), on April 30, 2007, the Secretary of Energy published Resolution No. 434/2007, which indicates the time frame for the application of the new tariff structure resulting from the RTI. The RTI will be implemented on February 1, 2008 in two installments, in February (67% of the increase) and August 2008 (33% of the increase). In the second half of the year, we expect to present our integral tariff proposal to the ENRE. We currently expect that the RTI will result in a revised tariff structure that, at a minimum, will maintain our then current distribution margins adjusted by the increases granted under the Adjustment Agreement (including CMM adjustments)" Financial Highlights: Six months period ended June 30* (without Six Six the un- months months billed period period % Change retro- % Change ended ended vs.2006 active VAD vs.2006 June 30* June 30* adjustment) 2007 2006 2007 Net Sales 1,066.0(1) 669.8 59.2 % 868.0 29.6 % Electric power purchases (443.3) (383.2) 15.7 % (443.3) 15.7 % Gross margin 622.7(1) 286.6 117.3 % 424.7 48.2 % Net Operating Income (loss) 322.7(1) 19.9 1,521.6 % 124.7 526.6 % * In millions of Argentine Pesos (1) As of June 30, 2007, energy sales include the retroactive portion of the VAD increase, which amounts to Ps. 218.6 million and is being invoiced and collected in 55 consecutive monthly installments, starting in February 2007. Of this amount, Ps. 20.6 million were invoiced as of June 30, 2007. About Edenor Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and Pesos). Through a concession, Edenor distributes electricity exclusively to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires, which has a population of approximately 7 million people and an area of 4,637 sq. km. In 2006, Edenor sold 16,632 GWh of energy and purchased 18,700 GWh of energy, with net sales of approximately Ps. 1.4 billion and net income of Ps. 293.1 million. This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the Company are intended to identify forward- looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties, including those identified in the documents filed by the Company with the U.S. Securities and Exchange Commission. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. A LONGER VERSION OF THIS PRESS RELEASE WITH FINANCIAL STATEMENTS AND DETAILED INFORMATION WILL BE FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, AND CAN BE FOUND AT WWW.EDENOR.COM IN THE INVESTOR RELATIONS/FINANCIAL REPORTS SECTION. Conference Call Information There will be a conference call to discuss the Edenor's quarterly results today, Friday, August 10, 2007, at 11:00 a.m. Buenos Aires time / 10:00 a.m. New York time. For those interested in participating, please dial (888) 802- 8577 in the United States or, if outside the United States, (973) 935-8754. Participants should use conference ID# 9086706, and dial in five minutes before the call is set to begin. There will also be a live audio webcast of the conference at http://www.edenor.com/ in the Investor Relations section. The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available through August 17, 2007. Please dial (877) 519-4471 or (973) 341-3080, and follow the instructions. The Conference ID# for the replay is 9086706. For more information, please access http://www.edenor.com/ DATASOURCE: Edenor S.A. CONTACT: investors: Buenos Aires, Ivana Del Rossi, +5411-4346-5127, Veronica Gysin, +5411-4346-5231, both of Edenor, , fax, +5411-4346-5358; New York, Melanie Carpenter, or Maria Barona of i-advize Corporate Communications, +1-212-406-3690 or (fax) +1-212-509-7711, Web site: http://www.edenor.com/

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