CEZ and E.ON have come to an agreement

Today, CEZ and E.ON concluded an agreement covering a set of transactions, aimed at a mutual exchange of the companies? minorities in Czech regional power utilities. In the scope of the agreement, CEZ undertakes to transfer its 35.21 % minority share in Jihomoravska energetika (South Moravian Power Company, abbreviated as JME) and a 34.01 % share in JihoÄŤeska energetika (South Bohemian Power Company, abbreviated as JCE) to E.ON. ¨

The E.ON, on the other hand, undertakes to transfer its 34.4 % share in ZapadoÄŤeska energetika (West Bohemian Power Company, abbreviated as ZCE) and a 41.7 % share in VĂ˝chodoÄŤeska energetika (East Bohemian Power Company, abbreviated as VCE) to CEZ. The monetary value of the equities will be determined according to the acquisition costs for which CEZ bought its equities in regional power utilities from the State Property Fund. The difference between the monetary values of the exchanged equities amounts to 1 372 million CZK, and CEZ shall reimburse this sum in cash, once all the above transactions have been concluded.

The two companies also signed an agreement which guarantees CEZ an option for the purchase of E.ON minority shares in North Moravian Power Company (30.3 %) and North Bohemian Power Company (5.9 %). CEZ will not be able to exercise this option until 2004, when it will have the opportunity to acquire the equity for identical costs.

The above steps, along with the compulsory purchase practiced in West Bohemian Power Company (ZCE) and Central Bohemian Power Company (STE), will make it possible for CEZ to acquire over 90% share in four regional power utilities (ZCE, STE, VCE and SME).

After the recently concluded transactions, CEZ holds equities in the following regional power utilities:

ZCE (West Bohemian Power Company) - 99,1 %

STE (Central Bohemian Power Company) - 97.7 %

VCE (East Bohemian Power Company) - 91.8 %

SME (North Moravian Power Company - 89.4 %

SCE (North Bohemian Power Company) - 56.9 %

Ladislav Kriz, Press Officer

4. 7. 2003