CEZ Group

CEZ Power Company is reorganizing the management of the entire CEZ Group. These changes in the management organization have been presented in the previous days and the VIZE 2008 Project has been launched.

The Board of Directors of the Rainbow Energy Foundation elected and appointed Gabriela Bartikova, a former press officer of the Ministry of Home Affairs, as new director of the foundation yesterday (28 June). Lucie Speratova, who, besides others, has worked for the Charter 77 Foundation-Konto Bariery, was made her deputy. The founder of the Rainbow Energy Foundation, through which its members develop their humanitarian activities, is the CEZ Group. The Rainbow Energy Foundation yearly supports projects amounting to 100 million CZK and belongs to the largest in the Czech Republic. (www.duhovaenergie.cz).

The Board of Directors of the CEZ Power Company appointed Petr Voboril as Vice-Chairman of the Board at their today´s meeting. Alan Svoboda remains as the other Vice-Chairman of the Board.

CEZ Power Company and COPA Retail have concluded an agreement about a sale of the premises in Jungmannova/Charvatova street in Prague 1.

On June 8, 2004, CEZ, a. s. successfully issued, through CEZ Finance BV, Eurobonds in the amount of 400 million EUR mature in 7 years with a coupon in the amount of 4.625 %.

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, which is going to be submitted to the general meeting on June 17, 2004. The Board is going to propose a gross dividend in the amount of 8 CZK per share (nominal value 100 CZK).

The CEZ Power Companyi has today announced in the HospodaĹ™skĂ© noviny a one-round tender for a sale of its share in Prazska energetika, a.s. (PRE)ii.

The operating earnings of Power Company CEZ increased by 1.5 billion CZK (by 48 %) to 4.5 billion CZK in the first quarter of this year. The sale incomes increased by 3.4 billion CZK (by 26 %) and reached 16.3 billion CZK. Despite that, the net profit decreased by 28 per cent to 1 634 million CZK (non-audited, non-consolidated results in accordance with the Czech Accounting Standards). However, this decrease was influenced by changes in methodology of derivate account, foreign exchange rates and income tax increase.