TERNA S.A., following the letter of its parent company GEK TERNA S.A. to the Capital Market Commission dated on 17/10/2016, wants to inform the investors that, following the Company's decision to proceed to settlement in the context of the ex-officio investigation of the General Division for Competition of the Hellenic Competition Commission from February 2013 and accept the relevant decision, the final outcome of the above procedure is issued and released.

As a result of this settlement, TERNA S.A.  will pay to the State the amount of EUR 18,6 million. As already announced by GEK TERNA S.A., in the context of the release of its Annual Results for 2016, the company has already included the relevant provision for the monetary penalty in the Financial Statement for 2016.

The Board of Directors of TERNA S.A. has taken the above decision solely on the basis that is to the best interest of the company to be no further extension of the legal and financial uncertainty in relation to that case, as this would have a significant negative impact to the company's future course and to the interests of its employees and shareholders.

It is worth noting that in case of non-acceptance of the settlement, the company would face multiple monetary penalties and long term uncertainty – both legal and financial- which would jeopardize the company's normal function, increasing at the same time the distraction cost of the directors and executives of the company, who would have to deal with the management of this case.

Finally, it is noteworthy that the closure of the case is in the best interest of the country as well, as it secures the completion of a number of important projects co-financed by the EU, the survival of a crucial sector for the country's economy and the preservation of thousands of jobs.