CEZ Group

CEZ Supervisory Board has today elected Mr. Martin Novak, CFO of the company a sixth member of the Board of Directors of CEZ Power Company. Extension of the number of members of the Board of Director has been approved by Annual General Meeting of Shareholders taking place today.

CEZ Power Company today completed a buyback of its stocks under so called „Share buy back program“. Until today, CEZ has bought 58 132 355 its own shares, which represents 9,816 % of the total volume. As CEZ had owned a part of the shares already before the program was commenced, it currently has a total of 9,998 % of its own shares on its account. CEZ was buying back its shares according to the decision of the general meeting on April 23, 2007, which, among others, passed a resolution to acquire up to 10 per cent of the company’s own shares. The buy back started on April 30, 2007.

In accordance with the binding dividend policy, at today’s meeting the Board of Directors of the power engineering company ČEZ decided on a proposal of the sum of the dividend from the last year’s profit to be submitted to the General Meeting of Shareholders which will be held on 21 May 2008. The Board of Directors will propose a gross dividend amounting to 40 CZK per share. The Board of Directors has also decided on submission of a proposal for cancellation of the treasury stock which has already been bought back and for granting of a mandate for new buyback to be implemented depending on the development of the cash-flow of ČEZ and the situation on financial markets.

Investments into property (excluding acquisitions) amounted to 30.7bn CZK.

CEZ Power Group reached a net profit of 42.8bn CZK in 2007, which was 49 per cent up on the previous year. The growth was given by higher production, a rise in wholesale prices, operating cost savings and the results of CEZ Group´s activities abroad. The growth was also markedly affected by extraordinary influences, like an impact of the tax reform in the amount of over 3 billion CZK, which reflected the influence of lower tax rates for deferred tax calculation and a change in the estimate of non-invoiced electricity. The contribution of foreign activities to the operating profit was 6bn CZK, which was 27 % more than in the previous year.

In January 2009 employees of CEZ, the joint stock company, elected members of the Supervisory Board. There are in total twelve members with four-year incumbency in the Supervisory Board; eight are elected by the General Meeting and four are elected by employees. In January 2009 the four-year mandate expired for Jiří Jedlička and Jan Ševr. Employees of CEZ, a. s. elected new members, Lubomír Klosík and Petr Gross.

Today, on Jan. 23 2008 European Commission published the so-called environmental package, i.e. the complex of drafts of legal regulations by which the political commitment of member countries of the spring summit of European Council in March 2007 shall become binding standard.

On January 15 CEZ Group concluded a credit contract for the amount of EUR 600 mil. (app. CZK 15.8 billion) for general financial demands including acquisition of 7% share in MOL company within the concluded strategic alliance between both companies. Yesterday, on January 22, the loan has been applied and today the transaction between ČEZ and MOL has been settled.

CEZ Power Company has today submitted an offer for construction of a new unit in the locality of Borzesti. Tender has been announced by the state-owned energy company Termoelectrica, which operates thermal power plants in Romania.

Customers can save several hundred crowns per year. A promotional campaign aimed at challenging customers to compare competitive offers and to chose their supplier freely.

CEZ Power Company has today submitted an offer for modernization of plant in Romanian Galati. A tender for a strategic partner in the present plant modernization project and potentially for construction of a new unit in the locality has been announced by the state-owned energy company Termoelectrica, which operates thermal power plants in Romania.