The issue was arranged and managed by the Ceskoslovenska obchodni banka, a.s. The syndicate of subscribers to this domestic issue includes significant securities brokers such as ABN AMRO Bank N.V., Ceska sporitelna, a.s. (Czech Savings Bank), ING Bank N.V., Ceskomoravska zarucni a rozvojova banka a.s. (Czech-Moravian Guarantee and Development Bank), HVB Bank Czech Republic a.s., Citibank a.s. and Komercni banka (Commercial Bank).CEZ has so far issued a total of 8 batches of debentures on the domestic market, whose combined value was 26.1 billion CZK. The first four issues of bonds, amounting to 13.1 billion CZK, have already been redeemed. The fifth one, which is worth 3 billion CZK and has an interest rate of 11 1/16%, will be, by the decision of the CEZ Board of Directors, redeemed ahead of the repayment schedule, by 27. 6. 2003."The new issue is in fact going to replace the fifth issue which is to be redeemed ahead of schedule. The difference between the two respective interest rates will obviously generate considerable savings. The new interest rate is the lowest on the Czech market with corporate bonds. This confirms excellent position of the newly reinforced CEZ Group on the capital market," said Ladislav Kriz, the CEZ Press Officer, in connection with this issue.CEZ was the first enterprise in the Eastern Europe to issue its obligations on foreign markets. The company has so far issued two batches of eurobonds on European markets and one batch of Yankee bonds on the US capital market. The first issue of eurobonds, worth 150 million USD, was redeemed in 1999 and replaced by a second issue worth 200 million Euros, which is due in 2006. The 200 million USD worth Yankee bonds were issued in 1997 and are due in 2007.

Ladislav Kriz, CEZ Press Officer