CEZ shares steering for Poland

We have considered Poland to be our strategic market since the very beginning of our foreign expansion. Gradually, we manage to set up our business in the neighbour´s power sector. We are trading electricity in Poland intesely, at the end of May we acquired two Polish plants, and now comes admission of our shares at the Warsaw Stock Exchange. All of those are steps that confirm the seriousness of our intention to operate in Poland as a partner who has much to offer to the local market, said Martin Roman, Chairman of the Board of Directors and CEO of CEZ. Our meetings with Polish investors have proved the dual listing of our shares meaningful several times. I firmly believe that demand for our shares in the following days will show that this has been the right step, added Martin Roman.

CEZ´s entry into the Warsaw Stock Exchange has been initiated by its interest to exploit the opportunities being offered by the Polish capital market. This step will provide access of Polish pension funds, whose investments out of Poland are otherwise rather regulated, to investments into CEZ shares. Virtually, there has been a lack of a large power company shares on the Polish capital market up to now. Our entry into the Warsaw Stock Exchange, which is the largest exchange in the region in terms of market capitalization, will result in an increase in the liquidity of our shares and larger diversification of the shareholders structure, and consequently our shares will become more stable, added Petr Voboril, financial director of CEZ.

Total market capitalization of companies traded at the Warsaw Stock Exchange was ca 94.425bn EUR at June 30, 2006.

Within its foreign expansion, CEZ Group has succeeded in very Poland, where it has owned two power companies Elcho and Skawina since May 2006. Earlier in October it also completed an acquisition of a 100% share in the Bulgarian power plant Varna. It is also Bulgary where CEZ has owned majority shares in distribution companies in the west of the country since January 2006. In terms of distribution, CEZ has acquired the Romanian distribution company Electrica Oltenia, which deliveres electricity in the area neighbouring upon the Bulgarian distribution area of CEZ Group.

Eva Novakova. Press Officer, CEZ, a. s.

24. 10. 2006