ESKOM NOT IN A POSITION TO INVEST IN NUCLEAR

The Board of Eskom Holding Limited announced today its decision not to proceed with the proposed investment in Nuclear-1 project due to the magnitude of the investment. The proposed Nuclear 1 project would have resulted in the construction of the country's second pressurized water reactor nuclear power plant. Koeberg Power Station is South Africa's first and only nuclear power station.

The Eskom Board has, as a result, terminated the commercial procurement process to select the preferred bidder for the construction of the Nuclear-1 project. The two bidders, the EPR consortium led by Areva of France and the N-Powerment consortium led by Westinghouse of the USA, have been informed of this decision of the Eskom Board.

"The Board has expressed its appreciation to the two bidders for their interest in the Eskom build programme, and in particular their desire to participate in the nuclear industry in South Africa. We were impressed by their professionalism throughout the bid process. We thank them for their patience and understanding during the past few months", says Mr Jacob Maroga, Chief Executive of Eskom Holdings Limited.

Statement issued by Eskom December 5 2008