8. 8. 2007

CEZ is issuing local bonds in the amount of CZK 7bn

CEZ has today set the terms for a local bond issue being launched in the Czech market. CEZ is issuing bonds, with a fixed interest 4.30 % p.a. and a nominal value of a bond at CZK 10,000, with an issue rate of 99.93 % of the bond nominal value. The amount of bonds issued on the date of issue totals CZK 7 000 000 000. The bonds will mature in 2010 and will be quoted and traded in the main market of the Prague Stock Exchange starting on the issue date set for August 27, 2007.

„Bond yields will be used for general financial requirements of CEZ Group, the company´s development and refinancing in the group,“ said to the purpose of the issue Petr Voboril, Chief Finance Officer CEZ.

Ceska sporitelna and Komercni banka are the project chief co-managers and coordinators – Ceska sporitelna is the quotation agent for the bonds to be admitted to trading at the Prague Stock Exchange, Komercni banka is the administrator.

The bonds have been offered to qualified investors and will be allocated to investors in the Czech Republic and the European region. Trading in the main market of the Prague Stock Exchange will start on the issue date. The bond issue prospectus will be available on the websites of the issuer and the co-managers.

For further information please contact:

Ladislav Kriz

Klara Gajduskova                         

Romana Ondruskova

Press Officer

Press Officer

Press Officer

CEZ

Ceska sporitelna

Komercni banka

Tel: +420 602 227 458

Tel: +420 261 074 460

Tel: +420 222 432 174

E-mail: ladislav.kriz@cez.cz

E-mail: kgajduskova@csas.cz

E-mail: romana_ondruskova@kb.cz

THIS ANNOUNCEMENT IS INTENDED ONLY TO GIVE INFORMATION AND DOES NOT CONSTITUTE A PUBLIC OFFER OF ANY SECURITIES IN THE CZECH REPUBLIC OR OTHER JURISDICTION, NOR IS IT AN ANNOUNCEMENT OF SUCH PUBLIC OFFERING.