CEZ willacquire Skoda JS, a major Czech company dedicated mainly to nuclearservicing and engineering

The energy company CEZ Groupwill become a sole owner of Skoda JS, a prominent Czech nuclear energycompany, thus solving the problem of this major supplier, which becamepart of the Russian engineering group OMZ, controlled by Gazprombank,several years ago. Due to the current situation, Skoda JS has been atrisk of sanctions, which has a potential impact on their ability tomaintain key services and supplies for CEZ's nuclear power plants.

Skoda JS is an original Czech company with localemployees, and unique domestic know-how. It has a long tradition ofbusiness cooperation with CEZ, mainly in the areas of nuclear fuel andmaintenance of primary circuits of nuclear power plants. Along withSkoda JS, CEZ also acquires their shares in the science and researchfacility _#218;JV _#344;e_#382;. This will increase the shares of CEZ in _#218;JV _#344;e_#382; fromcurrent 52,46% to a new total of 69,85%.

CEZ is executing the complex transaction incooperation with WOOD _amp; Company, a leading investment bank in the CEE,which will hold the shares until the transaction is approved by theantitrust authorities. This approach will ensure that Skoda JS willcease to be endangered by sanctions immediately after signing of thetransactions, while in normal circumstances this would happen only afterCEZ has received the approval from the antitrust authorities to takeover the company.

SKODA JS, a. s.,is one of the leading European engineering and manufacturing companieswith experience in the construction and servicing of nuclear powerplants. Founded in 1859, the history of today's SKODA JS begins in 1956.Since then, it has been continuously active in the sector. During itsexistence, the company has supplied capital units, equipment and servicefor nuclear power plants, research reactors, and spent nuclear fuelstorage facilities in Central and Eastern Europe, Scandinavia, France,Germany, USA, Austria, Finland, Belgium, PRC, Armenia, and othercountries. SKODA JS, a. s., has manufactured and delivered 21 completeVVER 440 nuclear reactors and three VVER 1000 reactors. Since the 1990s,it has also focused on Western markets and technologies. It cooperateswith the world's leading companies in the field. Currently, engineering, production,and service contribute equally to the company's sales, with exportsaccounting for approximately half of the company's turnover. The companyachieves annual sales of approximately CZK 3.5-4 billion. Almost half ofits sales are generated from the export of equipment and services. Itemploys over 1,000 highly qualified professionals.

WOOD _amp; Companyis a leading investment bank in the Central European market. Founded in1991, it has offices in seven European cities: Prague, Bratislava,Warsaw, Milan, Bucharest, Dublin and London. The company focuses onproviding services in the areas of corporate finance and capitalmarkets, securities trading and asset management.