Balamban Enerzone Corporation

Aboitiz Power Corporation (AP) purchased last March 7, 2008 the 40% equity of Tsuneishi Holdings (Cebu), Inc.’s in Balamban Enerzone Corporation (BEZ). The present acquisition brings AP’s total equity in BEZ to 100%. Aboitiz Power Corporation previously acquired a total of 60% equity in BEZ from its affiliate, Aboitizland, Inc. through a shares swap agreement which was approved by the Securities and Exchange Commission last January 10, 2008.

Balamban Enerzone Corporation, which owns and operates the power distribution system of the West Cebu Industrial Park. The West Cebu Industrial Park is managed and operated by the Cebu Industrial Park Developers, Inc., a joint venture between AboitizLand, Inc. and Tsuneishi Holdings, Inc. The park is a special economic zone for light and heavy industries and is home to shipbuilding and ship repair facilities, construction companies and gas plants.

The West Cebu Industrial Park sources its power from Toledo Power Corporation pursuant to an agreement which requires Toledo Power Corporation to supply up to 100MWof power to the park. In 2006 and during the first three months of 2007, the total amount of electricity sold to companies operating in the West Cebu Industrial Park was 50 GWh and 18 GWh, respectively, with the weighted average cost of electricity purchased during these period being P4,230/kWh and P4,319/kWh, respectively. Electricity losses during each of these periods were approximately 3.0% and 0.6% of total electricity distributed, respectively. During 2006, customers within the West Cebu Industrial Park experienced an average of 10.0 outages totaling 12.8 hours. During the first quarter of 2007, each customer experienced an average of 6.0 outages totaling 13.5 hours.

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