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4. 10. 2005

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Romanian distribution company Oltenia has become a member of the CEZ Group

In Bucharest today, the settlement of the privatization contract for acquiring the majority share in Electrica Oltenia S.A., which has thus become another foreign member of the CEZ Group, has been concluded.

Within the fulfilment of the privatization contract, shares and increased capital of Electrica Oltenia are transferred, and the agreed purchase price, which amounts to total 151bn EUR, is settled. 47.4 m EUR of this price cover a payment for 24.62 % equity share in the company´s current authorized capital, the remaining 103.6m EUR represent an increase of the authorized capital to total 51 % majority share of CEZ in Electrica Oltenia S.A.

Now a seven-member expert team CEZ Romania has been working in Romania since April. Under the leadership of Jan Veskrna, it is already participating in a standard take-over of the distribution company. „During the take-over we will use our experience, which we already have and are still gaining in Bulgaria, where the CEZ Group has been operating since this year´s January,“ promised Radomir Lasak, member of the Board of Directors and Administration Division Director, the division where foreign capital participation management belongs.

 „It is another step towards fulfilment of CEZ Group´s goal to become the leader of Central and South-Eastern Europe electricity markets. We take a serious interest in Romanian power industry, which we have proved by our entry into another privatization tender in electricity distribution, namely the tender for Electrica Muntenia Sud,“ said Martin Roman, Chairman of the Board of Directors and CEO of CEZ.

Electrica Oltenia is the largest of eight Romanian distribution companies with 19% share of the Romanian electricity market and with roughly 1.36m customers. It operates in the area of almost half the size of the Czech Republic, in seven of total 40 Romanian districts. It employs 2970 people. Total electricity annual output supplied by the company represents ca 6.8 TWh.

The number of end customers of the CEZ Group reached already 6.6 million by the Romanian acquisition. By that, the CEZ Group has come up from the ninth to the eighth place among the European power companies by the number of customers.

Results of Electrica Oltenia according to IFRS:

million  EUR   

2003

2004

Revenues

361

399

EBITDA

-17

70

EBIT

-119

49

Net profit

-58

46

Net debt (debt - cash)

1

1

* converted by 3.558 RON/EUR rate

Average no. of employees

2 960

2 930

No. of customers

1 364 901

1 371 398

 

Eva Novakova
Press Officer, CEZ, a. s.