Changes in the organisational structure of CEZ

The CEZ Board of Directors decided to establish - as of October 1, 2002 - a new section for strategic development?, in the framework of the main administration. This is a follow-up of the project for the reintegration of Czech power industry, which has been approved by the government. The newly established section will comprise all activities that are in some way related to the strategic development of the company. The person appointed as the executive director of the strategic development section was Mr Petr Voboril, who had previously been responsible for finances and administration, and who remains in his position of the company Deputy CEO.

The objective of this organisational change, which builds on the earlier organisational changes, is the gradual establishment of an organisational structure of CEZ a. s., a structure that will be fully compliant with similarly managed companies abroad. The mission of the section is to examine, evaluate and suggest alternatives for the future strategic behaviour of the company. The section will subsequently incorporate the applicable strategies, or their parts, into the planning documents (strategic or entrepreneurial intent or a business plan).

The section for strategic development will be in charge of the following areas: strategy, controlling, computer science, telecommunication and equity participations.

CEZ now consists of four sections: the section for strategic development (whose executive director is Petr Voboril), the section of finances and administration (executive director Pavel Hejkal) and the section of traditional power industry (executive director Pavel Klika). As of January 1, 2003, a new section will be added to this group. This new acquisition the nuclear power section will provide auspices to both nuclear power plants and to all activities related to the CEZ-operated nuclear power industry. If the Czech Economic Competition Protection Authority approves the planned merger between CEZ and the distribution companies, we may expect further adjustments of the organisational structure of CEZ as a result of this interconnection.

Ladislav Kriz, CEZ Press Officer

2. 10. 2002