Press releases pg. 40

The general meeting of CEZ has today approved control agreements with CEZData, s.r.o., CEZ Customer services, s.r.o. and CEZ Logistics, s.r.o., and has thus completed another phase of the company restructuring towards the regional distribution companies integration. The aim of the transformation is to make the operation of the CEZ Group more effective and to satisfy the EU conditions of unbundling production and power distribution department.

The energy company CEZ is aware that the government is considering several options of selling a part of the CEZ shares. The decision is fully within its competence, as well as the decision on utilisation of the funds acquired. CEZ only informs the government and the Ministry of Industry and Trade about the possibilities and implications of separate steps.

The Power Company is going to offer the purchase of the shares to minority stockholders of Skoda Praha. The concrete offer will probably be released by the end of January 2005.

CEZ obtained necessary transmission capacities for electricity export to Germany and Poland for next year. CEZ obtained the capacities in a tripartite auction organized by CEPS, a transmission system operator.