AGL Energy Limited (AGL) announced on 29 February 2008, in conjunction with the release of its 2008 interim results, that it had entered into an underwriting agreement with Citigroup Global Markets Australia Pty Limited (Citi) in respect of its DRP for the 2008 interim dividend of 26 cents per share, which is payable on 16 April 2008.

Shareholders holding approximately 26% of AGL's ordinary issued share capital have elected to participate in the DRP.

Shares will be issued to DRP participants at a discount of 2.5% of the arithmetic average of the daily volume weighted average sale price of Shares traded on the ASX during the pricing period commencing today, 31 March 2008, and concluding on 11 April 2008. No discount will apply to shares issued to Citi as underwriter.

Approximately $83 million will be underwritten by Citi.

Paul McWilliams
Company Secretary