Selling the interest in "Loy Yang A Project" in Australia

Today, as part of the Comprehensive Special Business Plan's management streamlining measures, Tokyo Electric Power Co., Inc. ("TEPCO") has sold its holdings (32.5%) in the Loy Yang A Project acquired in April 2004 to the subsidiary of AGL Energy Limited ("AGL"), one of Australia's leading integrated energy companies and currently 32.5% owner of the project.

The project is mainly comprised of electricity sales from Loy Yang A coal-fired power station in Victoria, Australia. Through investing in this project, TEPCO and AGL have played a leading role in the project's management and TEPCO also contributed by providing technical support in the area of operations and maintenance for the power station. The technical support is to continue for another seven years following the sale of our interest in the project.

In addition, while reserving brown coal at the project-owned mine, in leveraging its expertise TEPCO will study the mid-and long term advanced use of brown coal jointly with AGL.

We will implement thorough management streamlining measures while strengthening our technical expertise by continuing to contribute by dispatching staff and providing technical support to overseas projects.