Press releases pg. 26

According to the European Commission’s announcement of today, CEZ has been fully cleared of several serious accusations. Clear evidence has been discovered that CEZ has not and could not have manipulated with electricity prices, has not engaged in a cartel with anyone, nor has it been involved in limiting the trade with brown coal, which contrasts with accusations of the same malpractice recently raised against Czech Coal by numerous customers of the company.

The CEZ Group’s Net Profit for the first quarter of this year remained at last year’s levels, declining by only 2 percent (CZK 300 million). CEZ still foresees to meet the profit target for 2011 (expected to reach CZK 40.1 billion), which is still considerably affected by the subsiding crisis connected with low power prices.

The CEZ Group’s Net Profit exceeded expectations by half a billion, reaching CZK 47.2 billion. The CEZ Group also improved its last year’s results in terms of Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), which exceeded CZK 89.1 billion. Although the results of 2010 are, in line with expectations, lower than in 2009, CEZ eventually delivered a profit higher than planned to its shareholders.

The CEZ energy group has detected two unauthorized emission permit transfers in connection with the recent attack on the Czech carbon emission permit registry. Last week, OTE, the Czech carbon registry operator, temporarily closed its carbon registry, allegedly due to a software attack on the core parts of its information system.