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  Pistrelli, Henry Martin y Asociados SRL   Tel.: {54-11} 4318-1600/4311-6644
      25 de Mayo 487 - C1002ABI     Fax: {54-11} 4312-8647/4318-1777
      Buenos Aires, Argentina     www.ey.com/ar

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Shareholders and Board of Directors of
EMPRESA DISTRIBUIDORA SUR S.A.
(EDESUR S.A.)

We have audited the balance sheet of EDESUR S.A. (an Argentine corporation) as of December 31, 2002, and the related statements of income, changes in shareholders’ equity and cash flows for the year then ended, all expressed in U.S. dollars (not presented separately herein). Those financial statements are the responsibility of the Company’s Management. Our responsibility is to express an opinion on those financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the 2002 financial statements referred to above (not presented separately herein) present fairly, in all material respects, the financial position of EDESUR S.A. as of December 31, 2002, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in Chile.

Accounting principles generally accepted in Chile vary in certain significant respects from accounting principles generally accepted in the United States of America. Application of accounting principles generally accepted in the United States of America would have affected shareholders’ equity as of December 31, 2002 and the results of operations for the year then ended to the extent summarized in Note 29 of the Notes to the financial statements.

Buenos Aires, Argentina    
February 7, 2003    
    PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L.
    (Member Firm of Ernst & Young Global)
   
    EZEQUIEL A. CALCIATI
    Partner

Miembro de Ernst & Young Global

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