Main outcome of the extraordinary general meeting of SeveroÄŤeska energetika, a.s., (North Bohemian Power Company), member of the CEZ Group

Today´s special general meeting of the company SeveroÄŤeska Energetika, a.s., which was convened by the company board of directors by request of the majority shareholder Power Company CEZ, a. s., dealt with measures leading to an implementation of the approved outcome of the "Project REAS".

The main issues on the agenda of the extraordinary general meeting were, owing to the fact that a change of the company constitution was not approved, information about the company policy of enterprise activities and a contract of bilateral credit tranche with the CEZ company, a. s. Outcome of the extraordinary general meeting:

· The general meeting took into account information about the company policy of enterprise activities which concern a possibility to earmark certain activities into common enterprises within the CEZ Group, and a future cooperation and coordination of activities within this group in order to optimize economies for securing a long-term growth of the value of the CEZ Group and its single members.

· The general meeting decided to conclude an agreement of bilateral credit tranche with the CEZ company, a. s., to optimize utilization of short-term and medium-term financial funds within the groups of REAS and CEZ, a. s. The companies will benefit from the possibility to limit or eliminate external, i.e. bank sources, for covering their financial requirements. These measures will lead to cost savings of all members of the CEZ Group.

The reached decisions will provide for realization of the measures, which are the result of team work within the Project REAS. More than 100 employees, mainly from regional power industries, took part in this project. The decisions will lead to intensification of relations between the members of the CEZ Group, and to efficiency of its activities, so that the CEZ Group will succeed at the most in the tough competition on open market, and become the leader of the Central-European electricity market.

27. 2. 2004