Joint Press Announcement

The companies SeveroÄŤeskĂ© doly, a.s., Mostecka uhelna spoleÄŤnost, a.s., Sokolovska uhelna,a .s., Carbounion Bohemia, s.r.o. and CEZ, a. s., have just established a new joint-stock company Coal Energy, a.s. which will trade part of electricity generated by CEZ-operated thermal power plants fired by brown coal. Each of the founders shall own 20% of the new company.

By the following companies: SeveroÄŤeskĂ© doly, a.s., Mostecka uhelna spoleÄŤnost, a.s., Sokolovska uhelna, a .s., Carbounion Bohemia, s.r.o. and CEZ, a. s.,

In the first stage the activities of Coal Energy, a.s. will be focused on selling electricity on markets abroad, where CEZ has not been operating so far. The principal objective of this joint enterprise is to maintain the production capacities of the founders on optimal level in economic terms. This will naturally have a beneficial effect on the efficiency of the entrepreneurial activities of the founding companies, will improve their competitiveness and help prevent negative social, economic and environmental impacts of brown coal mining in the North Bohemia. The newly established company will begin its operations immediately after its has been put in the Register of Companies.

CEZ electricity procurer will continue to develop its own business activities focused on both domestic and international markets.

Ladislav Krizpress, spokesman of CEZ

15. 10. 2001