Expressing a democratic principle of decion-making and in view of the upcoming expiry of term of office for HEP Management Board members, scheduled for February 29th 2009, the President and members of HEP Management Board in agreement with the representative of the Owner unanimously placed their terms at disposal as of January 30th 2008. The constitution of the new Board will be decided by the Owner of HEP. Until then, the current Board will deal with only technical issues i.e. it will not make any important long-term decisions. We would like to distance ourselves from catastrophic headlines such was the latest one titled 'HEP is facing bankruptcy'. Even though the price of electricity was increased only once during the last four-year-term of this Board, on September 1 2005 by an average of only 5.5%, we would like to emphasize that HEP Group business results have always remained positive, and according to all currently available data the year 2007 will also end in such a trend. Previous 2007 was extremely unfavourable for HEP business operations due to an increase in variable operational costs by 28%, which was caused by a significant increase of fuel prices, imported electricity and unfavourable hydrological conditions. HEP Group has achieved a foreaseable positive business result for the year 2007 by decreasing fixed operational costs on all available positions by 9.1%. Therefore, HEP Group continues with the implementation of agreed measures for the purpose of decreasing all operational costs. In line with the above mentioned and in accordance with the statement made by the Owner, the price of electricity will remain unchanged until summer 2008. HEP Group does not plan any slowing down of already commenced projects of constructing huge capital investments. HEP has secured sufficient fuel quantities for the year 2008 to ensure safe and realiable electricity supply to its customers.