Press releases pg. 75

In the last year the CEZ Company reached a net income after taxation in the height of 2,259 Kc mln, i.e. ca by 64.5 % less than in the previous year. We had presupposed a decrease of the profit, even more severe, in the beginning of this year. There are several reasons for it, but the key factors are three - decrease of the domestic demand for electricity, stop of the power plant Tusimice I Retrofit and fall of the Czech crown exchange rate.

The mining company MUS and the power-generation company CEZ signed today (25th February 2000) a contract for this year purchases of lignite. Simultaneously, both parties executed to their mutual satisfaction an agreement of settlement solving the recent disputes concerning bills for lignite which CEZ had failed to accept in 1999.

The power-generation company CEZ, a.s. has appointed The Sumitomo Bank, Limited, Japan as the arranger of the syndicated security amounting to EURO 85 million in favor of the European Investment Bank (EIB). The security to be given for five years is a prerequisite for drawing the second tranche of the loan granted by EIB, amounting to EURO 85 million.

The State Office for Nuclear Safety (SONS) has granted on 31 st January 2000 to the power-generation company CEZ its permit to locate the construction of the central in-process store of spent nuclear fuel at Skalka. SONS had examined fitness of this locality with regard to nuclear safety and radiation protection and CEZ application with regard to particulars as stipulated by the "Atomic Act".