CEZ Group

Within nine months CEZ Group has generated 1.66 TWh of electrical energy in its renewable sources, nearly the same quantum it produced in the whole previous year

At its yesterday meeting the board of directors of the Warsaw Stock Exchange decided to admit CEZ Power Company shares to trading. As a result, CEZ shares will enter the main market of the Warsaw Stock Exchange tomorrow, October 25, 2006.

Last Friday CEZ set the price for its seven-years issue of eurobonds with a 4.125 % coupon. Deutsche Bank and Societe Generale are the main managers of the issue.

The Dlouhe Strane pumped-storage hydro power station generated 2,672.716 GWh of electrical energy during its 10-year operation. The Dlouhe Strane pumped-storage hydro power station in the cadastre of Loucna nad Desnou near Sumperk holds three ?superlatives?: It is equiped with the most efficient water turbine in Europe, uses the largest head in the Czech Republic and has the largest installed capacity of CEZ Group´s hydro power plants. During its 10-year operation it generated 2,672.715 GWh of electrical energy.

Standard & Poor's rating agency has raised the long-term financial strength rating of CEZ Group from BBB+ to the new A- level. Such rating is idendical with the rating of the Czech Republic. CEZ holds the best rating of all power firms in the former Eastern bloc, the same as, for example, the Swedish power concern Vattenfall or the German power company EnBW. CEZ is also a holder of A2 rating from Moody´s.

The CEZ company entered, through the public declaration, into obligation to invest entire interest gained from selling saved emission permits into measures aimed to decrease emissions of greenhouse gases. Among others, it also pledged to systematically diminish impacts of its business activity on the environment, adopt measures for reducing emissions, support energy savings, and lower the economy demand for energies.

Sofia The CEZ power company and Bulgarian Privatization Agency (BPA) completed today the acquisition of 100% share in the Varna power station. Today, the CEZ transferred the agreed upon purchase price amounting to EUR 206 million to the BPA account, and, at the same time, 100% of the power station stock was transferred to the company of CEZ. The Varna power station extends the CEZ Group power generating capacity by 10 percent.

CEZ Group has acquired a licence for electricity trading in Serbia through its Serbian daughter company CEZ Serbija d.o.o. CEZ Group asked for the trading licence for Serbia with respect to the planned opening of the power market in the countries in South-Eastern Europe according to so called power association contract. The participating countries of South-Eastern Europe, including Serbia, underwrote to open regional power and gas markets, and so implement the union power guidelines and standards for environment protection by 2008.

CEZ Power Company has started its final phase of dual listing of its shares at the Warsaw Stock Exchange. It is an administrative process regarding fulfillment of all requirements for quotation of CEZ shares at the Warsaw Stock Exchange. CEZ shares will thus enter the Warsaw Stock Exchange by the end of October this year.

Due to an enormous demand CEZ will produce record electricity quantum next year and will not export to Germany and Austria Despite actions taken, CEZ had to partly reduce the demand for seasonal products (many times higher than in the previous years), because it exceeded its production possibilities.