Ascendant Group Limited Reports 2009 Half-Year Earnings

Hamilton, Bermuda - 21 September, 2009 - Ascendant Group Limited (AGL.BH) has released the report on its earnings for the six months ended 30 June 2009. Ascendant Group is the holding company for operating subsidiaries Bermuda Electric Light Company (BELCO), Bermuda Gas & Utility Company Limited and PureNERGY Renewables, Ltd.

Ascendant Group's consolidated net earnings through 30 June 2009 were $5,507,315, which is 17.63 percent lower than the $6,685,950 reported for the same period in 2008. A.L. Vincent Ingham, Ascendant Group President & CEO, said, "BELCO's scheduled electricity power plant maintenance expenses incurred during the first half of the year resulted in lower consolidated net earnings for the Group during the first six months of 2009, compared to 2008. Given generally satisfactory performance across the business units, if BELCO's electric sales maintain anticipated levels through December, we expect the group will meet its financial targets for the remainder of the year."

Bermuda Electric Light Company Limited

BELCO's revenue from electric sales for the first six months of 2009 increased 5.89 percent or $6,021,220 with fuel adjustment revenues accounting for $3,080,146 of this increase; fuel adjustment revenue is offset by identical fuel expenses. An average 1.5 percent increase in the tariff rate, effective 1 January 2009, granted by the Price Control Commission, led to a $1,901,719 increase in sales revenues. Kilowatt hour (kWh) sales increased 4,206,460 kWh, up from 293,725,017 kWh sold in 2008 to 297,931,477 kWh sold in 2009, and this contributed $1,039,355 of the total increase in electric sales revenue.  Sales to residential customers increased minimally 152,998 kWh or 0.12 percent compared to 2008 sales. Sales to large demand customers increased 3.90 percent or 4,697,091 kWh compared to the same period in 2008. This increase is attributed to the addition of new commercial buildings, which offset a decrease in average consumption especially in the hotel sector, which has been badly impacted by the worldwide recession.

Overall operating expenses for the period were up 7.98 percent above the first six months of 2008. This is largely driven by Energy Supply expenses, which increased $5,685,739 or 9.01 percent. Of this total, 62 percent is attributable to increased fuel expense. An additional $306,810 of the increase was attributed to a decrease in overall operating efficiency, stemming largely from an increased number of major overhauls carried out in 2009, as compared to the same period in 2008, resulting in the use of less efficient turbines. The balance of the increase noted was due, in part, to additional costs associated with these engine overhauls, higher prices for lube oil, and additional maintenance contract costs on new plant.

Administration and General expenses increased $1,057,483 when comparing six-month results for 2009 and 2008. Approximately $811,790 of this increase is due to increased pension costs stemming from significant declines in returns from, and valuations of pension fund investments, resulting from challenges in the investment market over the last year. Bad debt expenses have also increased $140,000, as the Company increased its bad debt provision to recognise noted deterioration in the collection of receivables during the first half of 2009, due to the declining economic environment.

Bermuda Gas & Utility Company Limited

Bermuda Gas enters the second half of 2009 with improvements to sales and service revenues. Bermuda Gas net income for the first six months of 2009 showed significant improvement, increasing to $596,955, when compared with $137,855 earned in the same period of 2008. The increase in results is due largely to greater gas sales and increased focus on improving productivity.

PureNERGY Renewables, Ltd.

Launched in mid-2008, PureNERGY has already made its mark in the community with the successful completion of several solar photovoltaic installations, including Bermuda's largest residential renewable-energy deployment to date, at 14 kilowatts. PureNERGY has incurred a loss of $485,285 in the first half of 2009, which is considered part of the Company's start-up phase. PureNERGY designs, installs and maintains customised renewable-energy systems for both the residential and commercial markets, focusing on hybrid combinations of technologies including solar photovoltaic, solar thermal water heating, solar pool heating and micro-wind generation. It also provides a state-of-the-art, post-installation monitoring system to ensure optimal performance.

Mr. Ingham said, "We remain cautiously optimistic about the second half of the year, recognising that our results will be very much influenced by the performance and confidence in the international business, tourism and local retail sectors. We are monitoring both the short- and the long-term strategies of each operating subsidiary and adapting plans to position our companies to lead evolving market development and respond to changing market signals. Ascendant Group is focused on leveraging our collective core strengths to develop opportunities in both new and existing businesses."

Contact:

Susan McGrath-Smith                        441- 298-6126, smsmith@belco.bm