CEZ Group

CEZ Power Company has today submitted final price bids for two privatized Romanian distributional firms ? Moldova and Ostenia.

CEZ´s priority is to increase the firm´s value for shareholders, not only to expand abroad. We consider the expansion to be only one of the tools to reach our goal, but not the goal itself. We have always said, that we can accept only a price, which will increase the firm´s value, and that is the price CEZ offers when expanding. CEZ was also successful this way during the privatization of the Bulgarian distributional firms, historically biggest Czech foreign investment.

Based on the analysis of the demand for offered products for 2005, CEZ Power Company has reduced selling wholesale electricity prices for the next year for all prospective buyers, compared to the originally released indicative prices. The overall year-on-year increase will thus be half the value of the electricity prices on neighbouring markets and will reach the amount of less than 11 per cent, compared to the indicative increase of 15.6 %. The lower price rise, compared with foreign countries, will bring higher competitiveness of Czech companies.

CEZ Power Company has today sent the Slovak National Property Fund an adapted bid for purchase of a 66 % share in Slovenske elektrarne, a. s. in accordance with requirements of the Slovak Government.

CEZ Power Company has today concluded an agreement with the Czech Ministry of Finance about a sale of a 34 % share in CEPS (transmission system operator).

The net profit of CEZ Group increased by 58 per cent

Power Company CEZ generated 811 GWh in renewable energy sources in the first half-year, which is 2.7 per cent of its total energy generation (30 647 GWh). Already in the first six months, it is a significantly higher production than the production for the entire last year when it was 616 GWh in these sources, i. e. one per cent of the total energy generation. This increase is based upon the fact that after the destructive floods in the summer in 2002 a number of hydro power plants were still out of order last year. Two power sets that are still out of order at Orlik will be put into operation by the end of this year. A higher biomass burning energy production is another factor that has influenced the increase.

The management of CEZ Power Company has received a report from CA IB Corporate Finance, a. s., the organization and control advisor for the tender for the sale of a 34 % share in CEPS (transmission system operator), which states that no prospective buyer has entered into the tender.

CEZ Power Company has sent final bids for the purchase of a 66 % share in the company Slovenske elektrarne, a. s. today. CEZ has shown an interest in the entire Slovenske elektrarne, in all its parts, including nuclear power supply. The A1 and V1 nuclear plants in the Bohunice Nuclear Power Plant and the Gabcikovo Hydro Power Plant are not a part of the offer. The offer contains agreements about operation of the Gabcikovo Hydro Power Plant and the Bohunice Nuclear Power Plant V1.

The management of CEZ Power Company has approved the order of the one-round tender for the sale of the share in Prazska energetika, a.s. (PRE) as it has been submitted by the organization and control advisor for the tender, CA IB Corporate Finance, a. s.