Ascendant Group Limited Announces 2010 Six-Month Results

Hamilton, Bermuda – 23 September, 2010 – The Ascendant Group Limited (the “Company”; Ticker: AGL.BH) announced its six-month results.  Ascendant is the parent company of Bermuda Electric Light Company Limited (BELCO), Bermuda Gas & Utility Company Limited, PureNERGY Renewables, Ltd., BELCO Properties Limited, InVenture Limited and Sigma Corporate Services Company Limited.

Ascendant’s consolidated net earnings increased 6.48percent, or $357,049 to $5,864,364, for the first six months of the 2010 financial year from $5,507,315 reported for the same period in 2009.  Operating companies BELCO and Bermuda Gas both made positive progress in the first half of 2010.  Ascendant’s share price at 30 June 2010 was $14.00 or 9.09 percent below the 30 June 2009 market price of $15.40. Share price at the end of 2009 was $15.05. Book value increased 2.78 percent to $31.03 as at30 June 2010 versus $30.19 as at 30 June 2009.

BELCO

BELCO’s operating results for the first six months of 2010 show revenue for electric sales decreased 4.04 percent or $4,374,695. Fuel adjustment sales and expenses fell $6,432,337, as the average cost of fuel for the current period was significantly lower than the average noted in the first half of 2009. Fuel adjustment revenue is offset by identical fuel costs reflected in Energy Supply expenses. On 1 January 2010, average tariff rate increases of 1.5 percent took effect, approved by the Price Control Commission and subsequently the Energy Commission, resulting in an increase in electric sales revenues of $2,208,501. However, this was offset by a decrease in kilowatt hour (kWh) sales of 595,043 kWh; 297,336,434 kWh sold in 2010 versus 297,931,477 kWh sold in the same period last year, causing electric sales revenue to decrease by $150,859.

The decrease is attributed to a 4.54 percent or 7,880,873 kWh decline in sales to large commercial customers. Average consumption in the hospitality, retail and international business sectors was lower, as businesses sought to control costs in light of continued weak economic conditions locally. Sales to residential customers were up 7,285,830 kWh or 5.87 percent as compared to 2009. This was due, in part, to an increase of 0.82 percent in the average number of residential customers as compared to the first six months of 2009, as well as an increase of

5.01 percent in average monthly consumption.

Overall operating expenses for the period were 4.65 percent lower, as compared to the first six months of 2009. This is largely driven by Energy Supply expenses, which fell

$5,163,168 or 7.51 percent. As noted above, fuel adjustment costs decreased $6,432,337. In addition, material usage costs were down $391,356, as Energy Supply’s major engine overhaul schedule for the first half of 2010 was far less intensive than for the same period in 2009. This was offset by net increases of $1,269,169 in other operating expenditures, such as maintenance contracts and outside contractor costs, as BELCO entered into a five-year gas turbine service contract with Siemens Industrial Turbomachinery, effective 1 March 2010. In addition, direct and indirect labour costs increased $496,700 as a result of increases in payroll taxes, labour rates, overtime and training.

Administration and General expenses increased $382,540 when comparing six-month results for 2010 and 2009. Approximately $324,195 of this can be attributed to higher pension costs stemming from declines in returns and valuations of pension fund investments. Depreciation expense fell $214,301 when compared to last year, as a number of older generation assets reached the end of their established service life.

Bermuda Gas

Bermuda Gas’ net income increased $24,816 or 4.16 percent to $621,816 from $596,955 reported for the same six-month period in 2009. Principal drivers for this were increased gas operation sales, which rose 13.28 percent, and appliance sales, which were up 10.95 percent.

PureNERGY

PureNERGY incurred a loss of $239,535 for the first half of 2010 as compared to a loss of $485,285 for the same period in 2009. While PureNERGY has seen growth in both solar domestic hot water and photovoltaic residential sales in 2010, this was offset by decreased photovoltaic commercial sales in what has become a very competitive market. PureNERGY realised significant cost savings through improvements in operating and administrative processes.

BELCO Properties, InVenture & Sigma

 Ascendant’s property rental and development company, BELCO Properties, saw results decrease in the first half of 2010 to $84,662 from $126,720 during the same period in 2009.

In their first year of operation, neither InVenture nor Sigma have reported significant revenue.  InVenture has been investigating entry into new industries by leveraging the existing core strengths of Ascendant, including engineering and project management.  Sigma was incorporated in February 2010 to provide a range of support services. Sigma currently provides human resources and legal support services to Ascendant.

Additional information concerning Ascendant Group Limited can be found at www.ascendantgroup.bm and on BELCO’s newly redesigned web site, www.belco.bm.