CEZ Group

The Czech power provider CEZ is celebrating its tenth anniversary today. The company was established on 6 May 1992 by the Czech State Property Fund. It was one of the new entities emerging from the assets of Ceské energetické zavody (Czech Power Company). Its major focus became the production of electricity, which was then sold primarily to regional distribution companies.

In the first quarter of this year, the CEZ Power Company generated a net profit of 5.1 billion CZK, which translates into an increase by 1.8 billion CZK, i.e. by 55%, in comparison with the same period last year.

CEZ Corporation regards today's decision of the Czech government to interlink regional distribution companies as beneficial for maintaining the position of the Czech power industry within the Central-European region.

CEZ made a net profit of 6.3 billion CZK in 2001, which is 0.6 billion more then it generated in 2000, i.e. the company managed to increase its profits by 10 per cent. The increase in profits is due to cost-effective measures, which resulted in reducing the overall costs by 2 billion CZK, thus making up for relatively smaller revenues generated by the sold electricity volume.

CEZ Power Company signed an official agreement yesterday, thus renewing a revolving loan which had originally been concluded in October 1996 for the amount of $ 200 million repayable over a 5-year period.

The preliminary statistical data indicate that CEZ Power Company invested more than a billion CZK into environmental protection programmes. Considerable funds were invested especially into the areas of treating waste generated by coal-fired power plants (dry removal of flue ashes, the process of re-cultivating landfills and sludge beds), into the adjustments of water economy of the power plants or further optimisation of the plants.

The Monday meeting of CEZ Executive Board approved Ales Tomec as the newly appointed director of CEZ organisational unit - Hydro-Power Plants. Mr. Tomec was offered this job when he was leaving his position of the Chairman of the Executive Board and the General Director of CEPS, a. s. Ales Tomec assumed his responsibilities in the new position as of January 15, 2002.

CEZ Power Company noted the governmental decision to call off the tender which had been aimed at privatising CEZ and the six distribution companies. CEZ has always regarded the entrance of a strategic partner as an essential precondition for maintaining and strengthening the position of Czech power industry within the competitive environment of the European market.

Five CEZ power plants were given an international certificate for environmental protection management - EMS (Environmental Management System) yesterday. The pertinent certification company Det Norske Veritas granted this certificate to the following power plants: Tusimice, Chvaletice, Pocerady, Detmarovice and Dukovany.

CEZ Power Company noted the governmental decision to postpone the final choice of a strategic partner of CEZ until January 7, 2002, due to a low price of the offer. CEZ regards both the speed of the privatisation process and the acquisition price as essential factors for maintaining or even strengthening the position of the Czech fuel and power production complex in the competitive environment of the European market and enabling its expansion in the Central European market.