CEZ Group

CEZ Group has prepared another changes in its product offer for household end customers for next year. The goal of these changes is only one, to give households and enterprises a possibility to choose services and establish prices according to their needs and requests. At the same time, CEZ has published a price list of generation of electricity for househoulds and enterprises for next year. The year-on-year increase in the price of electricity generation was 14.4%. The generation of electricity accounts for roughly 50 per cent of households´ bills for electricity supplies. CEZ Prodej has derived prices for end customers directly from August prices on the Prague Stock Exchange. The overall increase in households´payments for electricity for next year will be known after the publication of the regulated parts of the price by ERU and the final version of taxes for next year.

The European Commission has today published a third liberalisation package of energy regulations. It represents a proposal for an amendment of the Regulation on common rules for the internal market in electricity, Directive on conditions for access to the network for cross-border electricity trade and proposal of a new Directive on constitution of a European Agency for Cooperation of Energy Regulatory Offices. CEZ supports adoption of the package and hopes that it will be primarily the endeavour to improve the interconnection among member states that will contribute to the completion of a single European energy market without any pointless barriers.

A tender for a construction licence for a dam and Boshkov Most 68 MW hydro power plant has been announced by the Ministry of Economy of Macedonia. Boshkov Most hydro power plant is to be built in the west of Macedonia near the city of Debar and on the river Mala Reka. The dam will be a part of the cascade with two lower situated plants, Radika and Spilje.

Today, the CEZ Ciepło Polska Sp. z o.o. Company submitted a bid for bankruptcy assets of PEC Katowice, a heat distribution company.

On 30th August 2007, Central Europe's two leading energy companies, CEZ, based in Prague, and MOL Plc., headquartered in Budapest, signed a Memorandum of Understanding which sets out the framework for a strategic alliance to create a joint gas-fired power and heat generation business in countries where MOL is a major energy consumer through its refining operations. As the first step the joint venture is expected to build and operate heat and power plants fired primarily by gas and also by refinery residuals at the Bratislava and Szazhalombatta refinery sites.

In relation to the ongoing purchase of its own stock, the CEZ energy utility has topped a 5 % share of nominal value of its corporate stock and as of 28 August 2007 has over 29,749,000 pieces of its own shares that are registered on its accounts with the Prague Security Centre (SCP). It is the sum of the stock acquired in the framework of a share buyback and the stock owned by CEZ before this program was launched. CEZ has been carrying out the purchase of its own stock on the basis of a decision taken by its general meeting held on 23 April 2007 which, among other things, adopted a resolution on the acquisition of up to ten percent of the company's own stock. The buyback started on 30 April 2007.

CEZ has received a decision of the Romanian company SC Electrocentrale Galati SA which has qualified the company into the tender for the strategic partner for modernization of existing plant or/and construction of a new plant in Romanian Galati. CEZ Power Company is thus entitled to submit its final offer under this tender. The next steps and the date for the submitting of the final offer has not been fixed yet.

Market share of the CEZ Group for end customers is 44.5 %

CEZ has today set the terms for a local bond issue being launched in the Czech market. CEZ is issuing bonds, with a fixed interest 4.30 % p.a. and a nominal value of a bond at CZK 10,000, with an issue rate of 99.93 % of the bond nominal value. The amount of bonds issued on the date of issue totals CZK 7 000 000 000. The bonds will mature in 2010 and will be quoted and traded in the main market of the Prague Stock Exchange starting on the issue date set for August 27, 2007.

CEZ Group is strengthening its investor relations, the vacancy after Jan Brozik, who became the financial director of CEZ Power Group this February, has been filled by Barbara Seidlova (30).