Press releases pg. 41

On December 7, 2004, a settlement agreement between CEZ Power Company and Dalkia France (and Dalkia International) was signed. At the same time, a mutual agreement of termination of arbitration, which had been filed at the International Chamber of Commerce in Paris after an appeal of Dalkia France, was concluded. Dalkia France assessed the losses resulting from non-performance of the business plan of the joint-venture with CEZ at 25 million USD. The agreement about this business plan was concluded in December 1999.

The net profit of CEZ Group increased by 67 per cent

CEZ´s attorneys, on behalf of CEZ Power Company, have lately filed for a change of a precedent decision of the UOHS (Office for the Protection of competition), which had decreed that CEZ, apart from other things, should sell a majority share in one of Czech distributional firms of the CEZ Group. CEZ has decided that the possibly sold company would be Severoceska energetika (SCE), where CEZ owns 56.93 %.

The Bulgarian government has approved a privatization draft agreement for a sale of 67 per cent of shares in distributional companies in the Sophia and Pleven areas and in the city of Sophia. Under the Bulgarian government decision the agreements must be signed by both sides within ten days.