APX UK Is To Acquire The Business Activities Of UKPX, A Part Of OMHEX

Yesterday, APX and OMHEX signed an agreement that APX will acquire the business activities of UKPX. The closing of the acquisition is anticipated in mid-2004 once certain operational and regulatory matters have been settled, and subject to the London-based Financial Services Authority not having objected to the transfer.

UKPX was established in 2000 as Britain's first independent power exchange. Today UKPX offers its 48 members an anonymous market place for trading, clearing and notification of spot and futures contracts. Over the period January-November 2003 traded volumes amounted to 6.5 TeraWatthours for spot contracts and 28 TeraWatthours for futures contracts.

APX Group was the first exchange provider to combine energy exchanges for gas and power, when earlier this year it acquired APX UK (in February) and EnMO, the UK gas prompt exchange (in July). UKPX will bring many complementary strengths to the APX Group in that APX has to date developed expertise in short-term physical markets and associated services while UKPX has focused on clearing and futures in addition to their successful UK Power Spot market.

Pieter Verberne, COO of APX Group said, "The planned acquisition of UKPX's business activities fits into the strategy of APX Group to strengthen its position in the UK and in Europe. The UKPX futures market is a true add on to our current business. This transaction is a major step in developing our multinational and multi-commodity exchange and demonstrates our deep commitment to the European energy sector."

Magnus Böcker, CEO of OMHEX said, "The sale of UKPX is part of OMHEX's streamlining and focus program announced in a press release on June 30, 2003. Today we are happy to announce that the long-term industrial partner APX will acquire UKPX. That will be the best solution for OMHEX and our customers."

OMHEX (through its wholly owned subsidiary OM London Exchange) will continue to operate UKPX until all operational and regulatory matters have been resolved. Over the first half of 2004, APX will undertake a controlled migration of services to form one single UK power exchange able to deliver a full range of solutions for market participants, including forwards and futures. It is intended that London Clearing House will provide clearing services for the long-term contracts.

EnMO's Les Male, the newly appointed Commercial Director of the APX Group said, "With our approach to combine power and gas activities, I expect this transfer will open up attractive opportunities and new products and services for our clients, many of whom are active in the UK and the Netherlands on several markets. The APX Group now serves nearly all significant European energy participants."