The Statement of the Power Company CEZ, a. s. with respect to business relations with the company E.ON as of 31st of May 2001

The Power Company CEZ has perceived that, due to political tensions occurring between Austria with the Federal republic of Germany and the Czech republic in connection with the situation in the field of power industry, the conditions for placing of domestic products in neighbouring countries show trends to worsen. CEZ is informed on the fact that one of its foreign business partners, the German company E.ON, has registered complications within the business environment of its home federal state of Bavaria as a result of the situation mentioned and that, in the same time, E.ON has announced interest in negotiations aimed at revision of the business relations with CEZ.

CEZ declares those contracts closed as fixed but announces openness to finding solutions that would not cause any loss to either contract party. Nevertheless, the basic commercial terms and conditions between the Czech republic and Germany continue to be affairs under jurisdiction of the political representations of both countries.

Ladislav Krizpress, spokesman of CEZ

31. 5. 2001