Press releases pg. 175

As the day when the Economic Competition Protection Authority will pronounce its verdict on the planned interconnection between CEZ and the distribution companies is drawing closer, the competitors exert considerable pressure against this merger. CEZ is by no means surprised by this scenario. It is obvious that the interests of our competitors from abroad are not identical with the interests of the Czech government.

The gross profit of the company increased by 2 per cent and reached the amount of 7.7 billion CZK, but its net profit dropped by 16%, to 5.4 billion CZK, which was due to the higher income tax deposits the company had been paying.

In relation to the forthcoming integration between CEZ and the eight distribution companies, the CEZ Power Company plans to establish a new section within the company administration structure, as of January 1, 2003. This new section will focus chiefly on distribution. The management of the distribution section is to be entrusted to Mr Henning Probst. However, these changes are conditional on an approval from the Authority for Economic Competition Protection, stationed in Brno, which is now assessing the planned interconnection between CEZ and the distribution companies.

A new administrative building of CEZ headquarters was awarded the title "Building of the year 2002". This award is traditionally given to the investor, architect and major supplier of the construction.