Press releases pg. 78

Today, the CEZ Group officially informed the Government of Bulgaria of its intention to initiate international arbitration on the grounds of Bulgaria’s failure to protect its investment unless the current situation is quickly remedied and the damage caused duly compensated. The Group resorted to taking this step after a series of interventions by Bulgarian institutions that damaged the business operations of ČEZ companies in Bulgaria, and further as a result of the critical situation in the local energy market that has as yet failed to show any improvement. The claim amounts to several hundred million EUR.

ČEZ today sent a Statement of Interest to acquire Vattenfall’s German lignite and hydro activities. Offered assets represent an interesting opportunity to expand business of CEZ with a number of synergies. On the contrary CEZ is ready to be a reliable partner for the region with extensive know-how in operation of conventional power plants and of lignite mining.

The unplanned shut-down of the second block ended today at 10:45 o'clock upon its reconnection to the grid. This block should achieve its full power output in the evening. The block has to be shut down for repair of the generator duct in the non-nuclear part of the power plant.

Operating Profit Before Depreciation (EBITDA) for the first half of this year reached CZK 35.5 bn while Net Profit adjusted for extraordinary items reached CZK 15.7 bn. Despite the continuing decline in the electricity selling prices, Operating Revenue rose to CZK 102.9 bn, primarily due to growing volumes of power, gas and heat sold to end customers. CEZ Group expects to generate a Net Profit adjusted for extraordinary items at CZK 27 bn by the year end.