BUENOS AIRES, Argentina, Feb. 27 /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 year ended December 31, 2007. All figures are stated in Argentine Pesos and have been prepared in accordance with Argentine GAAP. 2007 Highlights Net Sales increased 43.8% to Ps. 1,981.9 million in the year ended December 31, 2007, compared to Ps. 1,378.3 million in the year ended December 31, 2006. This increase is largely due to the application of the VAD increase and the Cost Monitoring Mechanism (CMM) adjustments to our non residential customers from February 1, 2007, the recording in the year ended December 31, 2007, of the full amount of the retroactive portion of the VAD increase for the period from November 1, 2005, to January 31, 2007, and to an increase in the volume of energy sold. The retroactive portion of the VAD increase (including CMM) resulted in a positive impact of Ps. 218.6 million. As of December 31, 2007, we had already invoiced Ps. 47.3 million of that amount while Ps. 171.3 million remains unbilled. In October 2007 the ENRE allowed the Company to recognize the CMM adjustment for the period May 2006 - April 2007 (9.63%) applicable as of May 1, 2007. Such adjustment can be deducted from the funds resulting from the difference between surcharges billed and discounts made to customers, deriving from the implementation of the Program for the Rational Use of Electric Power (PUREE), until their transfer to the tariff is granted by the ENRE. The impact of this adjustment in net sales for the eight-month period between May and December 2007 amounted to Ps. 49.6 million. Volume of Energy Sold increased by 7.5% to 17,886.1 GWh in the year ended December 31, 2007, from 16,632.1 GWh in the year ended December 31, 2006. The increase in volume is attributable to a 5.6% increase in the average GWh consumption per customer and a 1.8% increase in the number of customers. Gross Margin increased significantly (88.5%) to Ps. 1,092.0 million in the year ended December 31, 2007, from Ps. 579.3 million in the year ended December 31, 2006, mainly due to the application to our non residential customers of the increase in our distribution margin (VAD) from February 1, 2007 (including the May 2006 adjustment), the recording of the retroactive portion of the VAD increase for the period from November 1, 2005, through January 31, 2007, the recording of the May 2006 - April 2007 CMM adjustment and the increase in volume of energy sold. Net Operating Income increased significantly from Ps. 35.9 million in the year ended December 31, 2006 to Ps. 429.2 million in the year ended December 31, 2007, mainly due to the application of the VAD increase and CMM adjustments described above and to an increase in energy and power capacity sold. Net Income reached Ps. 122.5 million in the year ended December 31, 2007, compared to Ps. 293.1 million in the year ended December 31, 2006. In the year ended December 31, 2007, net income was positively affected by the application of the VAD increase, which results in a higher pre-tax net income of Ps. 247.4 million in 2007 compared to Ps. 125.9 million in the same period of 2006. These results were affected by the recording of an income tax charge of Ps. 125.0 million in 2007 and an income tax gain of Ps. 167.2 million in 2006. Financial Highlights: FINANCIAL HIGHLIGHTS Year ended Year ended % Change December 31 * December 31 * vs. 2006 2007 2006 Net Sales 1,981.9 (1) 1,378.3 43.8% Electric power purchases (889.9) (799.1) 11.4% Gross margin 1,092.0 (1) 579.3 88.5% Net Operating Income (loss) 429.2 (1) 35.9 1,095.5% *In millions of Argentine Pesos (1) As of December 31, 2007, net sales, gross margin and net operating income include the retroactive portion of the VAD increase, which amounts to Ps. 218.6 million and is being invoiced in 55 consecutive monthly installments, starting in February 2007. Of this amount, Ps. 47.3 million was invoiced as of December 31, 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 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. 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 http://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 on Thursday, February 28, 2008, at 12:00 p.m. Buenos Aires time / 9:00 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# 35718268, 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 February 28, 2008 to 12:00am (Midnight) on March 6, 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.iredenor.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: In New York Melanie Carpenter/Maria Barona i-advize Corporate Communications, Inc. 82 Wall Street, Suite 805 New York, NY 10005 Tel: 212.406.3692 Fax: 212.509.7711 Email: DATASOURCE: Edenor S.A. CONTACT: Buenos Aires, Ivana Del Rossi, Investor Relations Officer, +011-5411-4346-5127, or Veronica Gysin, Investor Relations, +011-5411-4346-5231, Fax: +011-5411-4346-5358, , both of Edenor; New York, Melanie Carpenter or Maria Barona, +1-212-406-3692, Fax: +1- 212-509-7711, , both of i-advize Corporate Communications, for Edenor Web site: http://www.edenor.com/ http://www.iredenor.com/

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