CEZ Group

In relation to the forthcoming integration between CEZ and the eight distribution companies, the CEZ Power Company plans to establish a new section within the company administration structure, as of January 1, 2003. This new section will focus chiefly on distribution. The management of the distribution section is to be entrusted to Mr Henning Probst. However, these changes are conditional on an approval from the Authority for Economic Competition Protection, stationed in Brno, which is now assessing the planned interconnection between CEZ and the distribution companies.

A new administrative building of CEZ headquarters was awarded the title "Building of the year 2002". This award is traditionally given to the investor, architect and major supplier of the construction.

Yesterday, the Board of Directors of CEZ Power Company appointed Mr David Svojitka the executive director for finances and administration of the company, as of October 15, 2002.

The CEZ Board of Directors decided to establish - as of October 1, 2002 - a new "section for strategic development", in the framework of the main administration.

CEZ Power Company, following its merger with regional distribution companies, will let the households benefit from the Rainbow Electricity, which has so far been supplied only to the distribution companies. This should happen within a very short time span. The Rainbow Electricity scheme will reduce the prices of electricity supplied to households at least by 5 %.

Yesterday, August 19, saw the conclusion of a contract between CEZ Power Company as a seller and the Czech Republic (The Ministry of Labour and Social Issues) as a buyer. The contract covered the sale of 15 % equity in CEPS, a daughter company of CEZ.

In the first half of this year, the CEZ Power Company generated a net profit of 7.2 billion CZK, which translates into an increase by 2.6 billion CZK, i.e. by 56%, in comparison with the same period last year.

Today, the representatives of the CEZ Power Company and the Czech State Property Fund (SPF) signed a contract covering the purchase of state shares in eight regional distribution companies (REAS). The representatives of CEZ and Osinek company also concluded a contract which covers the sale of 51% CEZ-owned shares in the transmission network provider, CEPS company.

All the fully operational power plants owned by CEZ are in possession of the international EMS (Environmental Management System) certificate. Today (26.6.2002) CEZ received this certificate from the independent auditing company DET NORSKE VERITAS Certification B.V., the Netherlands.

CEZ Power Company became the first company in the Central and Eastern Europe to promote its product by means of a publicity train engine of the Czech Railways (CeskĂ© drahy). Our railroads will see a "Rainbow Locomotive", which will be promoting the Rainbow Electricity generated by CEZ. This is a unique advertising project, not only within the Czech Republic.