Press releases pg. 7

According to the recommendation of legal advisors, CEZ has today taken another legal step against Mostecka uhelna from the Czech Coal group enforcing fulfilment of long-term coal supply contracts for a modern power plant in the area of Pocerady concluded in 2005.

The European Commission has today published a third liberalisation package of energy regulations. It represents a proposal for an amendment of the Regulation on common rules for the internal market in electricity, Directive on conditions for access to the network for cross-border electricity trade and proposal of a new Directive on constitution of a European Agency for Cooperation of Energy Regulatory Offices. CEZ supports adoption of the package and hopes that it will be primarily the endeavour to improve the interconnection among member states that will contribute to the completion of a single European energy market without any pointless barriers.

On 30th August 2007, Central Europe's two leading energy companies, CEZ, based in Prague, and MOL Plc., headquartered in Budapest, signed a Memorandum of Understanding which sets out the framework for a strategic alliance to create a joint gas-fired power and heat generation business in countries where MOL is a major energy consumer through its refining operations. As the first step the joint venture is expected to build and operate heat and power plants fired primarily by gas and also by refinery residuals at the Bratislava and Szazhalombatta refinery sites.

CEZ has received a decision of the Romanian company SC Electrocentrale Galati SA which has qualified the company into the tender for the strategic partner for modernization of existing plant or/and construction of a new plant in Romanian Galati. CEZ Power Company is thus entitled to submit its final offer under this tender. The next steps and the date for the submitting of the final offer has not been fixed yet.