CEZ Group

The decision of the Economic Competition Protection Authority (ĂšOHS) concerning the CEZ memorandum enabled the transfer of the equities in regional distribution companies and CEPS, a. s., thus launching the establishment of new CEZ Group, as of April 1, 2003.

Today's extraordinary general assembly of Stredoceska energeticka a.s., a regional power company, appointed new members of company Supervisory Board, who are in favour of the merger between CEZ and regional distributors.

Even in the second round of a tender, the CEZ Power Company did not choose a new owner of Dvur Kralova heating plant. The tender was cancelled because all the offers were too low to be accepted.

According to the International Financial Reporting Standards (IFRS), CEZ Power Company Group generated a net profit of 8.4 billion CZK in 2002 and 9.1 billion CZK in 2001.

CEZ a.s. and Sumitomo Mitsui Banking Corporation Europe Limited ("SMBCE") together with a syndicate of leading International Banks, signed on 8th April 2003, a ?88,000,000 guarantee facility in favour of the European Investment Bank ("EIB").

On April 2, 2003, the international rating agency Standard and Poor´s changed its long-term rating outlook of CEZ company, promoting it from stable to positive, as a result of the completed transaction process of integrating the (state owned) equities in regional distribution companies into the CEZ Group. The rating agency thus confirmed the suitability of this transaction. Standard and Poor´s agency also confirmed the BBB+ rating of CEZ company.

As of today, the shares of regional power utilities are integrated into the CEZ Group. According to the most recent information, all the shares in question were transferred this morning, i.e. within the agreed deadline, and were subsequently properly registered in the accounting systems of the Czech Securities Commission. This means that the project of incorporating distribution companies into the CEZ Group has been concluded approximately one year after the governmental proposal of this merger.

CEZ Power Company would hereby like to refute information about the alleged sale of Hodonin power plant, which has recently appeared in the press. CEZ is thus reconfirming the fact that it has no intention to sell the Hodonin plant and no such transaction is being prepared.

The firm rpg Energiehandel GmbH, a fully owned (100%) daughter company of CEZ, began quoting its shares on the German energy exchange market EEX, whose member it is. CEZ thus became the first Eastern European company to be allowed to trade on the German exchange market.