Press release

Under Law no. 297/2004 on the capital market and amended Regulation no. 1/2006 of the National Romanian Securities Commission, TRANSGAZ notifies shareholders and investors that the ANNUAL REPORT for 2007 shall be made public, as follows:

*    In soft copy – on TRANSGAZ website at www.transgaz.ro as of April 23rd, 2008;
*    In hard copy – at the company’s headquarters, Medias, no. 1, C.I. Motas Sq., Sibiu County as of April 23rd, 2008;
Such REPORT consists of:
*    Annual individual audited financial statements for the financial year ended on December 31st, 2007;
*    Annual Report of TRANSGAZ Management for 2007;
*    Independent Auditors’ Report on the financial statements for 2007;
*    Statement of the company’s management on the financial statements drawn up for the financial year ended on December 31st, 2007.

On March 26th, 2007, Standard & Poor’s Ratings Service granted TRANSGAZ the BB+, positive outlook, credit rating for long-term corporate loans. The positive outlook reflects the improved liquidity position following the primary initial public offering of shares planned for 2007. Moreover, such outlook reflects TRANSGAZ potential to reach investment grade as a result of the operation activity improvement, as a public entity listed on the Stock Exchange, by maintaining its credit ratios and by visibly upgrading corporate risk management practices. 
Following the credit rating reviewing process, Standard & Poor’s Ratings Service raised TRANSGAZ long-term corporate credit rating to BBB- from BB+.  “The upgrade reflects TRANSGAZ improved financial profile, which has been enhanced by the completed initial public offering (IPO) that will fund part of the company’s medium-term investment programme. The upgrade also reflects the increased visibility and amount of operating cash flow following a significant tariff increase and the finalization of tariffs for the regulatory period through June 30th, 2012” according to Standard & Poor’s Press Release dated February 29th, 2008. The rating on TRANSGAZ is underpinned by: 
*    the sole licensed status of the National Transmission System operator 
*    the predictable cash-flows generated from regulated transmission activities 
*    the company’s strong financial profile.

During March 3rd – 4th, 2008 The National Gas Company, ROMGAZ SA, in co-operation with The National Gas Transmission Company, TRANSGAZ SA, organised the first work session on “Sustainable Development – A Joint Objective”. Ms. Maria DOBROTA, on behalf of the Regional Agency for Environmental Protection, Sibiu and Mr. Nicolae SIMESCU, as member of TRANSGAZ’ Board of Administration participated in the above mentioned event, as guests. Such first meeting was meant to introduce environmental protection policies and achievements thereof, to ensure experience exchange in order to improve the environmental performance of the two companies. The meeting was deemed highly successful and therefore the companies decided to set systematic meetings, the following being planned for the second semester of the current year.

With the purpose of fulfilling its obligations regarding the assurance of natural gas supply security by building interconnections with the gas transmission systems of the neighbouring countries, as well as with the purpose of achieving the investment objectives specified within the development strategy and the minimal investment program established for 2007 - 2012, Transgaz, as the operator of the National Transmission System, concluded on January 22nd, 2008, in Szeged-Hungary, a Memorandum of Understanding with the Hungarian company MOL, for the completion of the interconnection pipeline between the two transmission systems, on the Arad - Szeged routte. The technical parameters of the interconnection pipeline on Romanian territory are: total length - 61.7 km (out of which 36.7 km already built); nominal diameter - 700 mm.The concluded Memorandum specifies the steps which are to be taken by the two Parties in order to achieve the construction and commissioning of the interconnection by the end of 2009.