Issue of shares under the institutional component of the Entitlement Offer

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

AGL Energy Limited (AGL) has successfully completed the initial issue of fully paid ordinary shares following the Entitlement Offer announced on Wednesday, 20 August 2014.

AGL has issued 46,901,978 new ordinary shares under the institutional component of the Entitlement Offer, raising gross proceeds of approximately $515.9 million. These shares commence trading today.

The number of AGL shares on issue following the issue of shares referred to above is 606,621,724.

The retail component of the entitlement offer opened on Tuesday, 26 August 2014 and will close at 5.00pm (Sydney time) on Monday, 15 September 2014. The despatch of the retail offer booklet to eligible retail shareholders occurred on Friday, 29 August 2014. Eligible retail shareholders who do not wish to take up all or part of their entitlement may sell all or part of their entitlement on the ASX until Monday, 8 September 2014.

Retail shareholders who have questions relating to the Entitlement Offer should call the AGL Offer Information line on 1800 824 513 (within Australia) or +61 1800 824 513 (outside Australia) from 8.30am to 5.30pm (Sydney time) Monday to Friday or go to our website www.agl.com.au.

About AGL
AGL is one of Australia's leading integrated energy companies and largest ASX listed owner, operator and developer of renewable energy generation in the country. Drawing on over 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is taking action toward creating a sustainable energy future for our investors, communities and customers.