ISA Acquires 100% of IE Madeira, Brazil's Second Longest Transmission Line

• ISA ENERGIA BRASIL completed the acquisition of the remaining 49% stake in IE Madeira, reaching full ownership of one of the most strategic transmission assets in its portfolio.
• IE Madeira is a 2,385-kilometer transmission infrastructure project, the second longest transmission line in Brazil and one of the largest in Latin America.
• The company now holds a 100% interest in its first HVDC (High-Voltage Direct Current) asset, one of the most efficient and reliable technologies for transmitting large volumes of electricity over long distances.
• Experience gained in operating HVDC networks strengthens ISA's technical capabilities and expands opportunities to participate in future transmission tenders across the region.
• Following the completion of the transaction, ISA ENERGIA BRASIL consolidates annual EBITDA exceeding BRL 660 million, strengthening long-term value creation and cash flow generation.

ISA, through its subsidiary ISA Energia Brasil S.A. (ISA ENERGIA BRASIL), completed the acquisition of the remaining ownership stake in transmission concessionaire Interligação Elétrica do Madeira (IE Madeira), achieving full ownership of one of the most important transmission assets in Latin America. This transaction strengthens the company's position in the largest electricity market in the region and consolidates control of critical infrastructure for the integration of clean energy in Brazil.

The transaction with AXIA Energia involved an asset exchange through which ISA ENERGIA BRASIL acquired the 49% stake in IE Madeira that it did not previously own and simultaneously divested its 51% stake in Interligação Elétrica Garanhuns (IE Garanhuns) to AXIA Energia. As part of the agreement, the company paid BRL 1.167 billion to AXIA. Through this transaction, ISA ENERGIA BRASIL achieved full ownership of IE Madeira, strengthening control and capturing the full value of this strategic asset.

From a financial perspective, the transaction allows ISA ENERGIA BRASIL to consolidate annual EBITDA exceeding BRL 660 million, strengthening long-term value creation, company cash flow, and Brazil's contribution to ISA's portfolio. Operationally, IE Madeira is a 2,385-kilometer transmission line, the second longest in Brazil and among the most extensive in Latin America. The project operates using HVDC (High-Voltage Direct Current) technology, which is designed to transport large amounts of energy over long distances with high efficiency, reliability, and reduced losses.

The incorporation of IE Madeira also represents a strategic milestone for ISA, as it becomes the company's first operational HVDC asset that is wholly owned. The expertise gained from operating and managing this infrastructure strengthens ISA's technical capabilities and broadens its experience for future transmission auctions involving HVDC technology, which is becoming increasingly important for renewable energy integration and large-scale energy transportation.

The line connects power generation in northern Brazil with the country's main consumption center, enabling renewable energy generated in resource-rich regions to be delivered to areas with higher demand. As a result, it has become an essential infrastructure asset for Brazil's energy security and for the large-scale integration of clean energy. The system crosses five states: Rondônia, Mato Grosso, Goiás, Minas Gerais, and São Paulo, under a concession agreement valid through 2039.

Olga Patricia Castaño, Acting CEO of ISA, stated: "This transaction strengthens our presence in one of Latin America's most strategic electricity corridors and reaffirms our commitment to developing critical infrastructure for the energy transition. The integration of IE Madeira enables us to consolidate capabilities in HVDC technology, a highly valuable expertise for the future growth of ISA and its companies across the region.