Outlook

The focus of 2010 will be on implementing the 2010-2014 business plan adopted by the Company's Board of Directors.
Investments under the business plan will be targeted at reducing grid congestion and at removing bottlenecks caused by an increase in energy generated from renewable sources. The Company’s objectives are increasingly oriented towards achieving operating efficiencies, ensuring the highest possible standards of transmission service, and ensuring increasingly efficient and secure management of electricity system energy flows. In 2010, the Company will also be focusing on developing its photovoltaic project, adding further value to the Group's assets.

During the year, the Company expects to complete its acquisition of Retrasm S.r.l., which will enable the Terna Group to further consolidate the percentage of the NTG that it owns (rising to around 99%). In addition, the Company expects to make further progress in the agreement with the government of Montenegro, which covers the construction of an underwater interconnection cable, and a strategic partnership between Terna and the local transmission operator.