CEZ Group

CEZ Group is planning to join a planned construction of demonstration low-emission units within the EU. At present, there are two localities under consideration North Bohemia (with planned construction of new modern soft-coal-fired units) and South-Moravian Hodonin. Both alternatives probably have the potential for a complete CCS (Carbon Capture and Storage) technology application.

CEZ, a. s. selected Ceska spořitelna (the Czech Savings Bank) and Komerčni banka (the Commercial Bank) as co-lead managers for the upcoming domestic bond issue.

Ivan Lapin became the new director of the Sprava CEZ (Administration) section starting from July 1, 2007. So far, he has worked for CEZ Group as director of CEZ Sprava majetku, s.r.o. (Assets Administration). In the position of the head of the Sprava section he replaced Daniel Benes, who became Chief Officer of CEZ.

On June 29, CEZ and Komercni banka signed an agreement about providing settlement of liabilities arising from dealings on the Prague Energy Exchange.

CEZ Group realizes the impending electrical energy shortage in the Czech Republic and is therefore preparing renewal of its coal-fired power plants. Each reconstructed or new plant must have ensured coal reserves. For that reason CEZ concluded an agreement with Mostecka uhelna, member Czech coal Group, for future coal supply contract covering coal supplies until 2055 already in 2005. After a new owner came, however, Czech Coal Group started to impede implementation of this contract.

A tender for a strategic partner in the present plant modernization project and potentially for construction of new resources in the locality has been announced by the state-owned energy company Termoelectrica, which operates thermal power plants in Romania. CEZ Power Company has today submitted documents confirming fulfillment of entry conditions for the tender under its pre-qualifying round and expressed an interest in this project.

Peter Bodnar has become director of the new section Resources construction and development. Acting as the director, he is responsible for the preparation and realization of the programme of CEZ´s domestic and foreign production resources renewal.

CEZ Power Company yesterday exceeded the 2 per cent limit within its ordinary share buyback. Until today, CEZ has bought back 11,988,574 of its shares, which represents 2.02 % of the total volume. This number of shares was bought back within 38 trading days. CEZ has been 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 treasury stocks. The buy back started on April 30, 2007.

CEZ Power Company and the Moldovanian firm Biogas Inter have today entered into a tentative agreement about buyout of emissions reductions achieved through using methane gas from the Moldovanian capital´s (Kishinev) urban waste dump. The tentative agreement was signed on the occasion of the visit by the Moldovanian delegation to Visegrad Four´s meeting in the presence of Moldovanian president.