Origin Energy Completes $400 Million Placement

Origin Energy has successfully raised $400 million through a placement of approximately 56.3 million shares to sophisticated and professional investors.

The proceeds of the placement will be used to partly fund the acquisition of Sun Retail from the Queensland Government.

The placement was conducted through a bookbuild process, with a final price of $7.10 per share. The final price represents a 2.6% discount to Origin Energy's closing share price on 24 November of $7.29 per share and a 2.5% discount to the 5 day VWAP.

Grant King, Managing Director of Origin Energy, said "We are delighted with the positive response from both our existing shareholders and new institutional investors to the placement. The positive response confirms that investors recognize the importance of the acquisition for Origin and the benefits it will bring in terms of a more competitive cost position, access to additional growth opportunities and the securing of a leading position within the consolidating Australian and New Zealand energy markets."

Citigroup Global Markets Australia Pty Limited and Macquarie Equity Capital Markets Limited acted as joint underwriters and bookrunners on the placement.

The new shares issued under the placement are expected to commence trading on ASX on 5 December 2006 and will rank equally with existing ordinary shares on issue.

Origin Energy is proposing to conduct a share purchase plan ("SPP") in the first quarter of 2007 to provide an opportunity for eligible shareholders to acquire up to $5,000 worth of shares. Applicants under the SPP will not incur brokerage or transaction costs. Further details of the SPP will be sent to shareholders in due course.