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Aug. 5, 2003 -- The head of AEM Milano said on Monday he expected the utility to report a 70 per cent rise in first-half earnings before interest, tax, depreciation and amortisation (EBITDA) and a 35 per cent rise in sales.

AEM Milano Chairman and Chief Executive Giuliano Zuccoli also said the company this fall would launch the first tranche of one billion euros in bonds authorised by shareholders.

"The results are much improved," Zuccoli told a shareholders' meeting. "EBITDA is expected to rise more than 70 percent and sales by 35 per cent."

AEM Milano is due to announce first-half results on September 11 or 12, he added.

In the first half of 2002, AEM Milano booked EBITDA of EUR128.4 million, down 15.7 per cent because of lower hydroelectric energy production and new regulations on tariffs. Revenues fell 11.1 per cent to EUR521.3 million.

Regarding the bond issue, authorised at Monday's meeting, Zuccoli said: "We are working to do it after the holidays at the beginning of autumn," he said after the meeting which cleared the issuance of up to EUR1 billion over the next five years. "We'll start out with a lower tranche."

Asked if the company could sell EUR500 million in bonds, he said: "Could be." Zuccoli said last month that AEM wanted to lengthen the term of its debt. It also said its borrowing needs totaled around EUR500 million given short-term debt it needed to refinance, along with spending on a planned capital increase by energy consortium Edipower, in which it is a shareholder.

AEM said it was making available up to EUR285 million for the Edipower capital hike, more than double what it would need if it subscribed to the one billion euro increase in line with its 13 per cent stake in the consortium.

But Zuccoli declined to comment on rumours that some of AEM's fellow investors in Edipower, formed to buy a generating company from state-controlled utility Enel, would not be participating in the capital hike.

The other stakeholders include utilities AEM Torino and Swiss group Atel

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