26 November 2008

The Nuclear Decommissioning Authority (NDA) and EDF today announce the start of the disposal process for land adjacent to nuclear sites at Wylfa in Anglesey, Bradwell in Essex and Oldbury in Gloucestershire. The process will be managed by the NDA.

Four separate lots are for sale in this process:

• The land at Wylfa, adjacent to an operating Magnox nuclear power station currently scheduled to close in March 2010, comprises NDA and EDF owned land in two lots totalling approximately 178 hectares (438 acres) together with an option to acquire any grid connection rights in respect of Wylfa held by any member of the EDF Group or the NDA.
• The land at Oldbury, adjacent to an operating Magnox nuclear power station currently scheduled to close in December 2008, comprises NDA owned land totalling approximately 48 hectares (119 acres). The NDA also owns a substantial area of land in the estuary including a tidal reservoir.
• The land at Bradwell, adjacent to a Magnox nuclear power station currently being decommissioned, comprises NDA owned land totalling approximately 200 hectares (493 acres).

The first step in the process will be for all potential bidders to return a compliant Expression of Interest, signed Confidentiality Agreement and Data Room Rules.

The process will be open to interested parties who submit compliant proposals satisfying the conditions set out in the Request for Expressions of Interest. However, the NDA reserves the right to exclude parties at any stage who do not offer a reasonable prospect of delivering value. After a period of initial dialogue interested parties will be requested to submit an indicative proposal with details about their bid and a preliminary valuation. Participants in the process will be given the opportunity to visit the land for sale, evaluate the opportunity and perform due diligence.

In accordance with the Simultaneous Marketing Agreement between NDA and EDF, the commencement of the auction is conditional upon EDF's offers for British Energy becoming unconditional in all respects. It is intended to hold the auction in the first quarter of 2009.

The NDA and EDF will be looking to dispose of their respective assets for the highest capital receipt, subject to certain conditions including, in the case of NDA, approval of DECC to any disposal.

NDA will give consideration to the proposed use if this could have a detrimental effect on the NDA’s adjoining landholdings which are to be retained and are either currently active nuclear power stations or in the course of being decommissioned.

Deadline for Expressions of Interest from interested parties was 17:00 Friday 16 January 2009.

For more information contact:

NDA - Bill Hamilton 01925 802193 or 07816 315132

EDF - Andrew Brown 0207 752 2268; or Kaa Holmes 020 7752 2179

Background

• On 10 September 2008 the NDA announced an initial tranche of land sales, following meetings with all the organisations which expressed an interest in its assets.

NDA Announces Land Sale - 10 September 2008

• In connection with these sales, the NDA announced on 24 September that it had reached an agreement with EDF for the joint marketing of land at these sites.

NDA Announces Marketing Agreement with EDF for Land Disposals - 24 September 2008

• Following the announcements the NDA offered the opportunity for stakeholders with any interest in its land at Wylfa, Bradwell and Oldbury, to meet with NDA to discuss its proposed disposal strategy and the implications for potential bidders. The NDA has met or is due to meet with all those who responded to this further round of dialogue.

Land Phase 1 - Market Engagement Exercise - 6 October 2008

• The NDA is a non-departmental public body (“NDPB”) with a remit to secure the decommissioning and clean up of the UK’s civil public sector nuclear sites. As a publicly funded body, the NDA is committed to delivering best value for money to UK taxpayers. It is therefore incumbent upon the NDA to obtain best value for the taxpayer/Exchequer in any transaction to dispose of surplus property. As an NDPB the NDA will need to follow the guidelines set out for the disposal of surplus property by the Office of Government Commerce (“OGC”). As such, the sale process has been designed to be compliant with these guidelines.
• The EDF Group is an integrated energy company with a presence in a wide range of electricity related businesses: generation, transmission, distribution, sale and energy trading. The EDF Group is France’s historic electricity operator and has a strong position in the three other main European markets (Germany, the UK and Italy), making it one of Europe’s main electricity concerns as well as a recognised player in the gas industry. With worldwide installed power capacity totalling 126.7GW (124.5GW in Europe, 63GW from nuclear generation) and global generation of 610.6TWh (418.0TWh from nuclear generation) in 2007, it has the largest generating capacity of all the major European energy corporations with the lowest level of carbon dioxide emissions due to the significant proportion of nuclear and hydroelectric power in its generation mix. The EDF Group employs over 158,000 people worldwide. The EDF Group supplies gas, electricity and associated services to more than 38 million customer accounts worldwide (including more than 28 million in France and 5.5 million in the UK).
• On 5 November, EDF (through its 100% subsidiary, Lake Acquisitions Limited) made formal offers for the acquisition of British Energy Group plc and the British Energy board has recommended its shareholders accept these. The offers are still subject to final regulatory approval and sufficient British Energy shareholders accepting the offer.