CEZ Group

Power Company CEZ and Dalkia Czech Republic have concluded a contract for purchase of 85% share in Dalkia Usti nad Labem for an amount which 100 % equivalent would reach 6.3 billion CZK consisted of a variable and fixed sum. Dalkia Usti nad Labem includes especially the Trmice Heating Plant and approximately 20 per cent share in Tepelné hospodářství Usti nad Labem (the Heat Economy of Usti nad Labem). CEZ will concurrently acquire 15 % of Dalkia ČR itself for 3.6 billion CZK consisted also of a variable and fixed sum.

The period when potential applicants could submit their applications for participation in tender for completion of the Temelín NPP, i.e. construction of two nuclear units, including delivery of fuel and an option for delivery of other three nuclear units in Europe, expired today at 12:00 o’clock.

CEZ, the Power Company has submitted a bid on an acquisition of 21.281% share in the German company ENSO Energie Sachsen Ost AG of the Vattenfall Europe AG company. Details of the bid will not be published.

CEZ energy company has concluded negotiations with Romanian Fondul Proprietatea on the purchase of 30 % stakes in Romanian companies CEZ Distributie S.A. and CEZ Vanzare S.A. for EUR 229.6 mil.

CEZ Group signed on September 4th the contract with General Electric for the supply of the wind turbines to be installed on the Cogealac phase of the Wind Farm project in Dobrogea, Romania

For next year the ČEZ Group has been preparing further extension of the product offer for end customers from several companies. The objective of such changes is to enable our company customers to flexibly manage the risk connected with the change of price of electric power. The price of electric power for subsequent day of supply for these customers will be set on the basis of the current prices on daily market (SPOT). ČEZ actively responds to a demand of large companies which after the fashion of western markets call for prices of electric power corresponding to the current wholesale market prices.

The ČEZ Energy Group achieved a net profit in the amount of 32 billion CZK in the first term of this year, which is an interim increase by 11 % per cent. In particular, sale of electric power for this year already in 2008 before decrease of prices due to the starting recession contributed to increase of the net profit. Despite the overall drop of electric power consumption due to the continuing economic crisis, there still has been an interim improvement of profits. However, this was affected in 2nd quarter when there was an interim decrease of profit by 5 per cent. We still expect the annual net profit to be on the level of 50.2 billion CZK.

Energy company CEZ has opened the public tender for the purpose of selection of a contractor of two nuclear units designed for Temelin location. CEZ has published its announcement concerning opening the public tender on the information server providing a list of public tenders in the Czech Republic and the same announcement is expected to be published on the all-European web site as well. Apart from the requirement for delivery of two new nuclear units, the public tender includes a requirement for unilateral options for the benefit of CEZ regarding construction of up to 3 more nuclear units in other potential locations within Europe.

The Czech power company ČEZ agreed with the J&T Group on acquisition of the exclusive rights to a construction project for a new power plant in Profen location, which both the partners acquired (CEZ through Severočeské doly) in relation to acquisition of the German power and mining company MIBRAG. Further details concerning the transaction will not be released.

Energy company CEZ has agreed on the purchase of ca 49% stake in Prazska teplarenska (Prague's major heat supplier) from its new owner, J&T Group, that acquired the stake in cooperation with Dalkia among other energy assets put on sale by International Power.