Statement about prosecution of Supervisory Board members

The option program of CEZ was approved as a standard incentive instrument by the general meeting held in 2001. The basic information about its functioning, including the fact that it concerned also members of the supervisory board, was published at that time as well. Providing all members of the supervisory board with endowment life assurance was a standard practice in similar companies and the program was practised at CEZ from 1994.

Both programs were drawn up by renowned law offices in accordance with world standards and the Czech system of law. CEZ keeps at disposal opinions of reputable legal authorities which confirm the compliance of the programs with the system of law. Therefore we are confident that, on the part of the company, there was no obstruction for all memebers of the supervisory board to participate in the life assurance program and to put signatures to option contracts submitted by CEZ based on the decision of the company´s general meeting. The withdrawal of memebers of the supervisory board from the option program in 2005 was motivated by changes in the owner´s strategy, not by doubts about the legal accuracy of the program.

We have never had any indication that either of the programs was contrary to the legal order of the Czech Republic. CEZ is ready to present the entire legal argumentations and details confirming the compliance of the option and endowment life assurance programs with the system of law of the Czech Republic to the police.

Ladislav Kriz, Press Officer, CEZ, a. s.

4. 1. 2007