“In 2008 we achieved planned results in all countries where we own energy assets; thus all foreign acquisitions of the ČEZ Group achieve continuously the fixed recoverability, contributing to good results of the whole Group, even in spite of the disfavourably strong Czech crown in last year, which affected the result indexes of the ČEZ Group abroad at conversion,” Daniel Beneš, the 1^st vice-chairman of the Board of Directors and Executive Director of ČEZ stated.

“The foreign activities of the ČEZ Group have been continuously expanding; only the number of foreign companies we manage increased by a third during last year. This trend will continue also this year with regard to the success of ČEZ in foreign acquisitions,” Tomáš Pleskač, the 2^nd vice-chairman of the Board of Directors and Director of ČEZ International Division stated.

By the end of 2008 ČEZ owned 39 foreign companies with 7 420 employees. Unlike the increase of number of foreign companies, the number of employees abroad dropped year-on-year in consequence of restructuring processes by 1350, i.e. by more than 15%.

Last year the share at Group fixed assets increased significantly; foreign companies of the ČEZ Group share them with more than 22%, while the share in the Group fixed assets was about 16% by the end of 2007.

“We manage our acquisitions through only several dozens of Czech employees. As against our competitors, we try to engage maximally local people, motivating them for work in the ČEZ Group. Besides, we achieve optimal transfer of know-how from one country to another by rotation of managers in our foreign companies,” Tomáš Pleskač added.

Last year the portfolio of activities of the ČEZ Group was expanded by so far the highest number of projects in the history from the point of view of foreign assets ownership. The Group succeeded in obtaining significant acquisitions in form of the construction of the biggest European wind park in Rumania; ČEZ became selected partner for construction of the 3^rd and 4^th block of Tschernavoda nuclear power station in the same country. ČEZ entered also successfully in the Turkish market and won the privatization process for a distribution company in Albania. By the end of the year ČEZ was selected by the Slovak government for construction of the Jaslovské Bohunice nuclear power station.

In 2008, the foreign power stations of the ČEZ Group produced about 6,5 TWh electric power and supplied more than 5 000 TJ thermal energy. The distribution companies in Bulgaria and Rumania sold 11,8 TWh electricity to end customers and distributed 17,0 TWh electricity. For comparison, the whole ČEZ Group produced 67,6 TWh electricity and 14 016 TJ thermal energy during the same period.

Table: Results for 2008

The ČEZ Group started foreign expansion in January 2005 when it took over majority shares in three Bulgarian distribution companies after the success in privatization tender. In autumn 2005, ČEZ succeeded in the privatization tender for purchase of majority share in the biggest Rumanian distribution company, Electrica Oltenia. In 2006, the ČEZ Group added three production sources, the Polish Elcho and Skawina power stations and the Bulgarian Varna into its foreign portfolio. One year later, the partnership with the Hungarian oil and gas company MOL focused on construction of gas power stations became the most significant acquisition. The year 2008 was so far the most successful for the ČEZ Group with regard to the number of acquisitions.