Sales, income and operating revenues of CEZ have risen sharply, despite that, the profit has been decreased by accounting operations.

The changes in the accounting methodology are something that does not depend on us and that we cannot influence. The important thing for us is that our operating earnings, sales and incomes have increased. Those are the results which give evidence about the company´s position. The fact, that the productivity indexes mainly the 35 % increase of added value per an employee on last year- continue improving, said Martin Roman, Chairman of the Board and CEO of CEZ.

CEZ has increased electricity sales by nearly 12 % compared to last year. Direct CEZ electricity export has fallen by 949 GWh (by 22.9 %) although the fall has actually been lower. A part of electricity for export has been sold to inland traders, which is a result of new regulations. According to them, a subject-exporter-can have only one foreign partner, who meets the requirements of respective transmission system, for a cross-border supply in a given profile. The real fall in export would be only 285 GWh (6.9%) unless influenced by the regulations. There has been a similar impact on the increase in electricity sales at home, which was 2 279 GWh (21.4%), where the real domestic supply increase is only 1 616 GWh.

The electricity generation in CEZ power plants has increased by 5.5 per cent to 16 418 GWh. Coal-fired plants have maintained the largest share of the general production, namely 56 %. Nuclear power plants have achieved the sharpest grow in production, full 30 %, thanks to the Temelin nuclear power plant. Their production reached 6 781 GWh (41% share of the general production), when it was 5 224 GWh for the same period in 2003. The electricity production in hydro sources has increased by 6.6 % to 434 GWh and in coal-fired plants it has reached 9 203 GWh 7.3 % less than last year.

CEZ has spent 652 million CZK on investments (without financial investments). The modernization of the Dukovany power plant is the main investment project at the present, further to that there are disposal of refuse projects and other ecological measures.

The number of employees has fallen by 475 (6.7 %) due to the ongoing efficiency measures connected with firm´s reorganization. CEZ was employing in total 6 663 people as of December 31, 2004, when the figure was 16 407 in 1992.

At the present we aim at fulfilment of the CEZ´s ambition to become the Central-European electricity market leader thanks to the acquisitions abroad. A few tens of experts from the whole CEZ Group are inspecting, within due diligence, the SlovenskĂ© elektrarne (Slovakian power plants) and Bulgarian distributional companies. We are ready to give offers that will reflect the economic value of these firms. We are also working hard on the preparation of the Vize 2008 project, which is going to widen and intensify the present REAS Project and also ensure meeting the requirements of unbundling (separation of trade and distribution). The project is focusing on achieving synergetic effects and economies generally in the whole CEZ Group. said at the end Martin Roman, Chairman of the Board and CEO of CEZ.

Table: Economic Results of CEZ for the First Quarter 2004

	(millions of CZK)	change
Total Revenues - electricity incomes	18 365 16 301	+ 27,0 % + 25,9 %
Total Expenses without Income Tax	15 870	+ 35,8 %
Operating profit	4 535	+ 47,7 %
Pre-tax profit	2 495	- 10,3 %
After-tax profit	1 634	- 27,9%

Note: non-consolidated figures in according to the Czech Accounting Standards

Ladislav Kriz, Press Officer, CEZ

2004. 5. 3.

Sales, income and operating revenues of CEZ have risen sharply, despite that, the profit has been decreased by accounting operations.