AGL Energy Limited (AGL) today announced changes to its Dividend Reinvestment Plan (DRP) Terms and Conditions and entered into an agreement with Citigroup Global Markets Australia Pty Limited, to fully underwrite that part of the current AGL 2008 interim dividend which is not reinvested by eligible shareholders participating in the DRP.

The Board also determined the following changes to the Terms and Conditions of the DRP:

• Introduction of a 2.5% discount to be applied when determining the DRP allotment price for the 2008 interim dividend
• Amend the allotment/rounding formula to round up shares allocated to the next whole share
• Amend the DRP pricing period from five (5) to ten (10) business days
• Amend the DRP allotment price to be calculated as the simple arithmetic average of the Volume Weighted Average Price on which AGL shares traded on each day of the DRP pricing period.

The above changes are detailed in their entirety within the attached copy of 'The AGL Energy Dividend Reinvestment Plan Terms and Conditions' booklet.

As detailed in today's AGL 2008 interim result for the six month period ended 31 December 2007, the 2008 interim dividend is 26 cents per share, fully franked, with a Record Date of 27 March 2008 and Payment/DRP allotment date of 16 April 2008.

Also attached is a copy of the shareholder letter communicating the above that is to be mailed to shareholders from Monday, 3 March 2008.

Paul McWilliams
Company Secretary

 Click here to download plan