Press releases pg. 30

The net profit of the energy ČEZ Group in the first half year fell year-on-year by 6.5 billion CZK to 28.7 billion CZK. Its EBITDA fell by 4.6 billion CZK. The fall in electricity prices was the main impact.

This year in May the company ČEZ drew the revenue office’s attention in writing to its suspicion that the company TES Praha, a.s. could have become an intentional or unintentional party to so-called carousel transactions resulting VAT evasion. In April ČEZ, when these transactions began intensively, it began to suspect that this trader may be breaking the law. Therefore it submitted all source documents to the revenue office. ČEZ also stopped trading with emission tickets and with other companies which used a similar trading model as TES Praha a.s. Standard trading with other reputable partners continues.

The ČEZ Energy Group achieved a net profit in the amount of 32 billion CZK in the first term of this year, which is an interim increase by 11 % per cent. In particular, sale of electric power for this year already in 2008 before decrease of prices due to the starting recession contributed to increase of the net profit. Despite the overall drop of electric power consumption due to the continuing economic crisis, there still has been an interim improvement of profits. However, this was affected in 2nd quarter when there was an interim decrease of profit by 5 per cent. We still expect the annual net profit to be on the level of 50.2 billion CZK.

Energy company CEZ has agreed on the purchase of ca 49% stake in Prazska teplarenska (Prague's major heat supplier) from its new owner, J&T Group, that acquired the stake in cooperation with Dalkia among other energy assets put on sale by International Power.