Press releases pg. 126

Sofia The CEZ power company and Bulgarian Privatization Agency (BPA) completed today the acquisition of 100% share in the Varna power station. Today, the CEZ transferred the agreed upon purchase price amounting to EUR 206 million to the BPA account, and, at the same time, 100% of the power station stock was transferred to the company of CEZ. The Varna power station extends the CEZ Group power generating capacity by 10 percent.

CEZ Group has acquired a licence for electricity trading in Serbia through its Serbian daughter company CEZ Serbija d.o.o. CEZ Group asked for the trading licence for Serbia with respect to the planned opening of the power market in the countries in South-Eastern Europe according to so called power association contract. The participating countries of South-Eastern Europe, including Serbia, underwrote to open regional power and gas markets, and so implement the union power guidelines and standards for environment protection by 2008.

CEZ Power Company has started its final phase of dual listing of its shares at the Warsaw Stock Exchange. It is an administrative process regarding fulfillment of all requirements for quotation of CEZ shares at the Warsaw Stock Exchange. CEZ shares will thus enter the Warsaw Stock Exchange by the end of October this year.

Due to an enormous demand CEZ will produce record electricity quantum next year and will not export to Germany and Austria Despite actions taken, CEZ had to partly reduce the demand for seasonal products (many times higher than in the previous years), because it exceeded its production possibilities.