Moscow, June 22, 2007. The RAO UES of Russia Board of Directors approved the conclusion of an agreement between RAO UES of Russia and JSC INTER RAO UES for the trust management of shares in JSC Severo-Zapadnaya TETs, JSC Kaliningradskaya TETs-2, JSC Sochinskaya TETs, JSC Ivanovskiye PGU, JSC Sangtudinskaya GES-1 and JSC Test Bed of Ivanovskaya GRES.

According to the Board of Directors resolution of 9 February 2007, the development strategy of JSC INTER RAO UES provides for the consolidation of the foreign and certain Russia-based generating assets which have not been incorporated into any OGKs and TGKs. It was decided that the optimum approach to the company's restructuring would be to increase its authorized capital by transferring to JSC INTER RAO UES the shares held by RAO UES of Russia in JSC Sangtudinskaya GES-1, JSC Severo-Zapadnaya TETs, JSC Kaliningradskaya TETs-2, JSC Sochinskaya TETs and JSC Ivanovskiye PGU.

However, considering that reorganization of the RAO UES of Russia is scheduled to be over on July 1, 2008, it appears advisable at this stage to take steps to transfer the shareholdings in the above companies and JSC Test Bed of Ivanovskaya GRES to JSC INTER RAO UES for the trust management.

Therefore, conclusion of this agreement will enable the JSC INTER RAO UES to proceed with implementing the basic elements of strategy and start integration of the said electric power assets into its business structure, ensuring coordination and timely execution of all necessary corporate procedures. The companies under trust management will be run in accordance with the standards and in the interests of RAO UES of Russia.