CEZ held a press conference to Vision 2008

CEZ held a press conference to the progress of the restructuring process Vision 2008. The said that the planned gross savings achieved from the restructuring in 2005 of CZK800 mil. were exceed by CZK200mn, nevertheless, its target of annual savings of CZK3bn from 2008 was unchanged. The whole process was speeded up with already 7 our of 10 new companies created from the original 5 distributors are fully functional. In 2006, CEZ would most focus on increasing efficiency of the newly created structures. CEZ also said that it will implement its restructuring experience from Vision 2008 into its acquisitions in Romania and Bulgaria, which performance in 2005 exceeded CEZ’s expectations. The overall outcome of the press conference was slightly positive, nevertheless, we believe that the market is looking for CEZ to exceed its original expectations from the Visiion 2008. We reiterate our Hold recommendation.