Continued growth in demand and record connection numbers highlighted in annual report

Esb has reported pretax profits of €240m, up 31% on 2004. The increase is largely attributable to one-off events, including business and property disposals. This performance represents a 5.7% return on group assets. ESB Chairman, Tadhg O'Donoghue, said the company is continuing to provide a first-class product for customers despite continued growth in demand and record numbers of new connections.

Speaking at the launch of the annual report for 2005, Mr. O'Donoghue said ESB is continuing to implement efficiencies and savings while improving the quality of service it gives to electricity customers and suppliers across the country.

Mr. O'Donoghue continued, "The continued rise of global fuel costs is obscuring the extent of the cost efficiencies achieved across ESB, in Payroll and work practices. The end user price tariff is affected more by fuel costs than any internal measures implemented by ESB."

ESB Chief Executive Padraig McManus welcomed progress made during the year on the issues of pay and the pension deficit. "At the end of 2005 ESB staff accepted a deal that addresses the ongoing pension deficit and ensures ESB's competitiveness in terms of work practices going forward".

Mr. McManus praised staff and unions for the continuation of the partnership approach. The Group"s payroll costs have decreased by €24m in 2005 with a reduction of close to 1,000 employees year-on-year.

ESB market share in power generation continued to fall during 2005 to 63% of the market and is expected to fall to 50% by the end of this year.

Padraig McManus said ESB would continue to seek growth opportunities in the International market while decreasing the company"s presence in the Irish market.

ESB Annual Report 2005 Financial Information

In the interest of adhering to best practice in financial reporting, ESB voluntarily elected to prepare the Group"s 2005 financial statements in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU. Accordingly, the 2004 comparative figures above have been restated in compliance with IFRS.