Medellin, January 11, 2013 Today in the General Assembly of Shareholders of EPM Ituango: The assignment of the contract for EPM to directly develop the Ituango project The endorsement of the Assembly seeks mechanisms that generate economy, efficiency and optimization of resources, ensuring the increase of benefits, both for shareholders and for communities in the area of influence and for this project, the most important project in terms of electricity generation in Colombia The decision will make it possible to minimize the negative impact of the failure to obtain a Special Permanent Free Trade Zone for the project The Extraordinary General Assembly of shareholders of EPM Ituango held this Friday approved the proposal for EPM to directly execute , not through EPM Ituango, the "BOOMT" contract (which stands for Build, Operate, Own, Maintenance and Transfer) and any other contracts signed for execution, as well as the rights and obligations inherent in them. Most private minority shareholders (0.45%) voted against. Due to the contractual position, EPM will pay EPM Ituango an amount of $ 18,519,893,719 . Additionally, EPM approved the sale of assets associated with the project for a value of $ 785,556,468,350, according to the balance sheet to December 31, 2012, plus the investment that EPM Ituango may make between 1 and January 11, 2013. The approval of the assignment of the contract to EPM will help reflect the financial benefits corresponding to the legal stability contract signed by EPM with the Nation and make an additional social investment of $ 100 million to improve the quality of life of the population of the area of influence of the hydroelectric plant, seeking the viability and sustainability of the territory, especially in terms of education, health, development of productive projects and completion of infrastructure works. The municipalities that will benefit from the additional social investment that will be made by the Government of Antioquia and EPM, will be: Briceño, Buriticá, Ituango, Liborina, Peque, Olaya, Sabanalarga, San Andrés de Cuerquia, Santa Fe de Antioquia, Toledo, Valdivia and Yarumal. By highlighting the potential of the scheme approved by the Assembly, the General Manager of EPM, Juan Esteban Calle Restrepo, reiterated that, as a public company, EPM is required to find mechanisms that generate economy, efficiency and optimization of resources, both public and private, always trying to increase the benefits for the community and the owners. After noting that in July 2012 the government ruled unfavorably regarding the Master Plan of General Development of the Project, a prerequisite for obtaining the Special Permanent Free Trade Zone, Calle Restrepo said "directly carrying out the project was an option that had been contemplated in case the Trade Zone application was unsuccessful, and although other options were analyzed, the possibilities offered by the legal stability contract signed with the nation, where some benefits are established for EPM, were a powerful reason to set forth this alternative formula, which, we are sure, is best for the community, for shareholders and for the development of the most important project of electricity generation in Colombia, because, this way, better financial results can be achieved, access to funding sources can be facilitated and management activity can be streamlined. " "Here we all win: Antioquia, IDEA, the Governor, EPM and all minority shareholders. The reality is that with the refusal of the Trade Zone for the project there was also a loss for everyone because there were great expectations associated with that ruling, which we quantify at around U.S. $ 370 million. But we found a solution that seems sensible, transparent and fair to absolutely all shareholders and which allows the partial recovery of that loss, "said the manager. EPM Ituango's shareholder composition is of a 99.41% for EPM, 0.14% for CHEC and 0.45% for public and private minority shareholders. Compensation to shareholders EPM will recognize to EPM Ituango the investments made after its book value, and also the net present value of the contractual position, as assessed by an independent expert who determined the fair figure, so that there will be no detriment or loss to any of the shareholders of EPM Ituango. Additionally, the vast majority of minority shareholders of EPM Ituango are also shareholders of Hidroituango, a company with which a BOOMT contract was signed in 2011. Therefore, with the exception of EPM, all will benefit from better economic results and will receive compensation for accepting the "usufruct" contract of shares (alternative which involves delivering a right but not the ownership thereof), which in this case amounts to $ 35 million, a figure agreed upon in initial arrangements related to the prospect of the Free Zone. Prior to the Assembly of EPM Ituango the assignment of the contractual position had been endorsed by the Assembly of Hidroituango. The corporate purpose of EPM Ituango is to develop the Ituango hydroelectric project under the BOOMT contract. Being given the contract, that company enters grounds for dissolution, which is why this company's alternatives will be submitted for consideration at a future meeting. Further Information: Communications Unit - Telephones: (574) 3804418 – (574) 3804404 .