Preliminary results of the compulsory offer of equity in STE and ZCE

On 2nd June 2003, the CEZ company made a compulsory offer to the shareholders of Stredoceska energeticka, a. s., (Central Bohemian Power Company, abbreviated as STE), offering them 2,033 CZK per one share, and to the shareholders of Zapadoceska energetika, a. s., (West Bohemian Power Company, abbreviated as ZCE), offering them 6,179 CZK and 30 hellers per one share.

55% of the contacted STE shareholders (owning a total of 814 822 shares of the company) and 40% of the contacted ZCE shareholders (owning a total of 180 728 shares of the company) sent their written acceptance of the proposed deal to an appointed agent of Deutsche Bank by 30 June 2003. 38 796 ZCE shares and 450 445 STE shares were sold through bidding in RM System company. Within the compulsory purchase scheme, CEZ will acquire a total of 13.7% equity in ZCE and 39.4 % equity in STE.

The offer for equity takeover was accepted e.g. by Energie AG Oberoestereich company, which owns 179 430 shares in ZCE, and by RWE company, which owns 1 122 857 shares in STE.

The final outcome of the takeover of Stredoceska energeticka, a. s., and Zapadoceska energetika, a. s., will become clear in relation with gradual transfers of shares in the Czech Securities Commission and with regard to the payments for the acquisition costs, which are due to be disbursed in August, i.e. 34 weekdays after the termination of the legal validity of the offers.

Ladislav Kriz, Press Officer

4. 7. 2003