CEZ Group

Czech energy utility CEZ and U. S. Steel Kosice (USSK) signed a memorandum of understanding which sets out the framework for a possible construction of power generating capacity in the production site of USSK in city of Kosice, Eastern Slovakia.

Today CEZ power company submitted clarified indicative bid on the basis of an inquiry of the Bulgarian NEK power company which last year declared tender for a strategic partner in construction and operation of the Bulgarian nuclear power plant under construction .

Prague, December 20, 2007 - Today, leading European energy companies CEZ (Czech Republic) and MOL (Hungary) created a strategic alliance and signed a joint venture agreement.

At the same time the power company ČEZ decided to increase the dividend payment. From now 50 to 60 percent of the CEZ Group net profit should be allocated to dividends. So far it was 40 to 50 percent.

ČEZ temporarily suspends buy-back of share starting from Christmass holidays.

In the first three quarters of 2007, foreign companies of CEZ Group interannually increased their share in the operating profit before interest, tax, depreciation and amortization by 300 million CZK, thus contributing 4.3 billion CZK in total. Now, they comprise 8 % of the CEZ Group economic results.

The ČEZ Group is proposing that the Czech Republic utilise part of its emission credits, assigned according to the Kyoto Protocol, to design and build a CO2 capture and disposal storage unit into geological structures (CCS – Carbon Capture and Storage technology). One such suitable locality might be the Ledvice power plant in Northern Bohemia

CEZ Group´s end consumer market share in the Czech Republic is 44.2 %

CEZ Power Group reached net profit of CZK 29.7 bn in the first three quarters of this year, which was a 34.8 per cent year-on-year increase. 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 contribution of foreign activities to the operating profit before depreciation was CZK 0.3bn higher year-on-year and totalled CZK 4.3 bn. The positive impact of the electricity demand in entire Europe resulting from the economic growth was, on the other side, reduced by the influence of the warm weather at the beginning of the year. Operating revenues reached CZK 123.5 bn, rose by nearly 14 per cent.

Yesterday, Romanian company Societatea Nationala Nuclearelectrica announced that it had accepted an offer of CEZ Power Company. CEZ has been selected as one of the partners in a process of building and operating of nuclear reactors 3 and 4 at Romania's nuclear power plant Cernavoda,

With effect from November 2, 2007, three Bulgarian distribution companies of CEZ Group were consolidated into one. EDC Pleven and EDC Sofia oblast ceased to exist on that day and they were consolidated into EDC Stolichno. Thus, Bulgaria went through a process similar to the one domestic distribution companies underwent three years ago.

Decin – Josef Holub (*1951) will become new CEO of CEZ Distribuce, a.s. from January 1, 2008, He will replace Jiri Kudrnac (*1965), who will become director of the division CEZ distribuce, a.s. on the same day.