Statement by Chairman of the Board of Directors

Dear Ladies and Gentlemen,

the foreword to the Annual Report of the year of 2007 might be enough if summed up in just three words – „we are very pleased.“ In the year of the 85th anniversary of the Company´s foundation we did accomplish a lot in fact – the best economic result in history, improved customer service level and unbundled the Company in a manner compliant with challenging legislative requirements stipulated in the EC Directive as well as the local Energy Act of 2004, all with their deadline of July 1, 2007.

Behind these three positive points there has been a great deal of work and effort performed by our colleagues and external advisors. There are hundreds of hours of detailed analysis of trade strategy, negotiations with state institutions and trading partners, creations of new operational management rules of the Company which has become a group itself within the multinational E.ON Group.

As of July 1, 2007 two new daughter companies of Zapadoslovenska energetika began to perate independently - ZSE Energia, a.s. and ZSE Distribúcia, a.s. which brought the number of companies with ZSE share close to ten. Design of a new and functioning model has not been an easy task in conditions where the law stipulates separation of activities, which used to be one work process just recently and where there are limits on sharing certain customer information data. The challenge is exacerbated also by public pressure on prices of services provided by regulated companies.