Komorany FBC Retrofit in the Czech Republic

Michael Mallinen

Executive Vice President

Power International Inc.

Coeur d`Alene, Idaho

I want to thank you for the article which you wrote describing the Komorany FBC retrofit project in the Czech Republic. The article was exceptionally well written and represented the project well.

Obviously, the support Prvni severozapadni teplarenska a.s., the owner of the generation facility, and Power International received from the publication is greatly appreciated.

One point I would like to emphasize for future reference is the ability of the Prvni severozapadni teplarenska management team, and specifically the General Director Stefan Pallay. The vision for the company, its privatization and the contractual framework of its business must be attributed to this man.

General Director Pallay was one of the first leaders of the Czech Republic power industry to recognize the need for privatization and fought a hard struggle to attain his goal.

In addition, the importance of long-term heat and electricity sales agreements were paramount in his vision for his company, and therefore created a strong and financially stable operating company.

We at Power International were contracted by the operating company to assist in privatization and supported the company in any way possible during contract negotiations, but the management of the operating company led by General Director Pallay certainly deserves the recognition of the vision for his firm and the accolades of its success.

To state that we at Power International privatized and negotiated the long term sales contracts is not correct–we supported the General Director. He and his staff deserve full credit for both accomplishments.