Edenor Announces First Quarter 2008 Results

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Elkedra	LSE:EDN	London	Ordinary Share	AU000000EDN2	ORD NPV

Industry Sector	Turnover	Profit	EPS - Basic	PE Ratio	Market Cap
	0	0		N/A	0

Elkedra (LSE:EDN)
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BUENOS AIRES, Argentina, May 9 /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 three month period ended March 31, 2008 (first quarter of 2008). 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 period ended March 31, 2008 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 March 31, 2008 of Ps. 3.168. 1Q08 Highlights Net Sales decreased 27.5% to Ps. 455.7 million in the three months ended March 31, 2008 from Ps. 628.4 million in the three month ended March 31, 2007. Excluding the effect of the full recognition of the retroactive VAD increase in 2007 (Ps. 218.6 million), our net sales increased 11.2% from Ps. 409.8 million in the first quarter of 2007, to Ps.455.7 million in the first quarter of 2008. This increase is mainly due to the application of the 9.63% Cost Monitoring Mechanism (CMM) adjustments to our VAD starting in the second half of 2007, the recording of only two months of sales following the February 2007 VAD increase in the first quarter of 2007 (compared to three months registered in the first quarter of 2008) and an increase in the volume of energy sold. The impact of the 9.63% CMM adjustment in net sales for the three month period ended March 31, 2008, amounted to Ps. 19.7 million. This increase is being collected through the PUREE funds. Volume of Energy Sold, increased by 4.4% to 4,589 GWh in the three months ended March 31, 2008 from 4,395 GWh in the three months ended March 31, 2007. The increase in volume is attributable to a 2.7% increase in the average GWh consumption per customer and a 1.7% increase in the number of customers. Gross Margin decreased 41.8% to Ps. 240.8 million in the three months ended March 31, 2008 from Ps. 414.0 million in the three months ended March 31, 2007. This decrease is exclusively due to the recording in the first quarter of 2007 of the full amount of the retroactive portion of the VAD increase (including CMM) for the period from November 1, 2005 to January 31, 2007. The retroactive portion of this VAD increase resulted in a positive impact of Ps. 218.6 million in the first quarter of 2007. Excluding the effect of the retroactive VAD adjustment, gross margin increased 23.2% from Ps. 195.4 million in the three months ended March 31, 2007 to Ps. 240.8 million in the three months ended March 31, 2008. Net Operating Income decreased from Ps. 268.4 million in the three months ended March 31, 2007 to Ps. 64.2 million in the three months ended March 31, 2008, mainly due to the recording in the year ended December 31, 2007 of the retroactive portion of the VAD increase (including CMM). Net Operating Income (Excluding Retroactive) our net operating income increased from Ps. 49.8 million in the three months ended March 31, 2007 to Ps. 64.2 million in the three months ended March 31, 2008 Net Income reached Ps. 19.0 million in the three months ended March 31, 2008, compared to Ps. 106.8 million in the three months ended March 31, 2007. As described above, net income decreased mainly as a consequence of the recording in 2007 of the full amount of the retroactive portion of the VAD increase charged to our non-residential customers (including all the CMM adjustments). Recent Events Absorption of accumulated deficit: The Ordinary and Extraordinary Shareholders' Meeting held on April 14, 2008 decided to absorb the accumulated deficit existing as of December 31, 2007 for Ps.88.6 million. Taking into account the order of preference established by the regulations of the National Securities Commission, the Company absorbed the accumulated deficit with the Additional paid-in capital, which as of December 31, 2007 amounted to Ps. 106.9 million. 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 2007, Edenor sold 17,886 GWh of energy and purchased 20,233 GWh of energy, with net sales of approximately Ps. 2.0 billion and net income of Ps. 122.5 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. Conference Call Information There will be a conference call to discuss the Edenor's quarterly results on Friday, March 9, 2008, at 11:00 a.m. Buenos Aires time / 10:00 a.m. New York time. For those interested in participating, please dial (888)335-5539 in the United States or, if outside the United States, (973) 582-2857. Participants should use conference ID# 45175513, 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. There will be a replay of the conference call from 12:00pm (Noon) Eastern Time on May 09, 2008. To access the replay, please dial (800) 642-1687 or (706) 645-9291, and follow the instructions. The Conference ID# for the replay is 35718268. For more information, please access http://www.edenor.com/ Investor Relations Contacts: In Buenos Aires Ivana Del Rossi Investor Relations Officer Tel: 5411.4346.5127 Veronica Gysin Investor Relations Tel: 5411.4346.5231 Edenor S.A. 1025 Azopardo Street, 16th Floor (C1107ADQ) Buenos Aires, Argentina Fax: 5411.4346.5358 Email: http://www.edenor.com.ar/ In New York Melanie Carpenter/Maria Barona i-advize Corporate Communications, Inc. 82 Wall Street, Suite 805 New York, NY 10005 Tel: 212.406.3690 Fax: 212.509.7711 Email: DATASOURCE: Edenor CONTACT: In Buenos Aires, Ivana Del Rossi, Investor Relations Officer, +011-5411-4346-5127 or Veronica Gysin, Investor Relations, +011-5411-4346-5231, both of Edenor, fax, +011-5411-4346-5358, ; or in New York, Melanie Carpenter or Maria Barona, both of i-advize Corporate Communications, Inc., +1-212-406-3690, fax, +1-212-509-7711, Web site: http://www.edenor.com.ar/

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EDN Elkedra