Announcement of early dividend

Pampa Energía declares early dividend to compensate for the 2011 personal asset tax that it must pay for its shareholders

Buenos Aires, January 5, 2012. Pampa Energía S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP), announces today that, in order to preserve its equity value and to ensure equal treatment amongst its shareholders, Pampa’s Board of Directors has decided to implement, once again, a procedure that it believes is useful and efficient and that consist in declaring an early dividend against which it will compensate for the personal asset tax amounts that Pampa has to pay to the Argentine tax authority for the fiscal period of 2011, corresponding to its shareholders.

In accordance with the provisions of the Personal Asset Tax Law No. 23,966 Pampa is required to pay as substitute taxpayer the personal asset tax payable by all Company shareholders, as of the closing of December 29, 2011, who are subject to the tax.

Pampa has declared an early dividend of AR$ 17,086,041.63, or AR$ 0.013 per common share. On January 10, 2012, registered coupons will be issued representing this early dividend.

On March 30, 2012, Pampa will pay the early dividend to the shareholders and will withhold the corresponding amount of personal asset tax from those shareholders who are subject to the tax. Argentine companies and holders of common shares from Switzerland, Chile and Spain are not subject to this tax (ADS holders are taxed in all cases).

For further information, contact:

Ricardo Torres – Chief Executive Officer
Mariano Batistella – Special Projects Manager and Investor Relations Officer
3302 Ortiz de Ocampo, Building #4
(C1425DSR) Ciudad Autónoma de Buenos Aires, Argentina
Phone: +54 (11) 4809 9500