CEZ Group

CEZ Power Company and Czech Energy Holding, a.s. (CEH), controlled by one of the founders and partners of J&T financial group, Patrik Tkac, agreed on a plan to carry out a transaction, which will result in integration of operation units of United Energy, a.s. ? controlled by CEH supplying heat to the localities of Chomutov, Teplice, Klasterec nad Ohri, Kadan and Bilina ? into CEZ Group, a.s., during the very year 2006.

CEZ Power Company reached net profit of 10,371bn CZK in the first quarter of the year, which was a year-on-year increase of 39 per cent. Operating profit of CEZ Group was 14,816m CZK. The growth was mainly influenced by an increase in trade margin, higher sales, a significant improvement in the economic performance of Bulgarian distribution companies of CEZ Group and enlargement of the Group by the Romanian distribution company Electrica Oltenia. While revenues rose, the company managed to keep its costs under control and they grew at a lower pace.

The Board of Directors of CEZ Power Company decided to revoke the tender for the sale of Dvur Kralove heating plant and to terminate its sale.

The Russian company TVEL will become a new fissionable fuel supplier for Temelin Nuclear Power Plant from 2010. In that year the contract with the American firm Westinghouse expires. The contract of fissionable fuel supply for two VVER-1000 reactors of Temelin Nuclear Power Plant has been concluded by the representatives of CEZ, a.s. and the Russion corporation TVEL today. The contract has been signed by Jiri Borovec, Vice-Chairman of the Board and director of production division, and Daniel Beneš, Vice-Chairman of the Board and director of administration division, on behalf of CEZ and Anton Badenkov, deputy president of the company, on behalf of TVEL.

Yesterday´s meeting of the Board of CEZ Power Company decided on a proposal for the amount of a dividend from the last year´s profit (non-consolidated), which is going to be submitted to the general meeting on 23rd May 2006. The Board is going to propose a gross dividend in the amount of 15 CZK per share (nominal value 100 CZK).

CEZ Power Company, has today sent, within a privatization tender, an improved offer for a 67.5 % share in the Romanian distribution company Electrica Muntenia Sud S.A.

CEZ Power Company and WOOD & Company Financial Services have concluded an agreement about cooperation during the planned entry of CEZ shares in the Warsaw Stock Exchange.

Zdenek Pasak, staff manager of the division Personalitika CEZ (Human Resources), has been elected a new member of the CEZ Board as from April 22, 2004 at today´s meeting of the Supervisory Board. He has thus replaced Alan Svoboda, who has resigned.

The floods in March and April caused 2.89m CZK damage to CEZ Group. The largest damage recorded was mainly to technological and building parts of our distribution transformers VN/NN. Water caused also damage to some high voltage cable lines?, says Martin Nemecek, director of Poskytovani siti CEZ Distribuce, a.s (Provision of networks CEZ Distribution).?

CEZ Power Group is planning to invest total 30 billion CZK in the development of renewable resources within the following 15 years. About 20 bn CZK out of the sum will go to construction of new wind power plants. CEZ Group´s company CEZ Obnovitelne zdroje (Renewable Resources) has prepared a demand for a purchase of suitable projects.