Moscow, 10 April 2007. RAO "UES of Russia" announces upcoming auctions to sell 49 percent shares in OAO "Nizhny Novgorod Retail Company", OAO "Sverdlovenergosbyt", OAO "Kuzbass Energy Retail Company", OAO "Belgorod Retail Company" and OAO "Vologda Retail Company", 49.2 percent shares in OAO "Kolskaya Energy Retail Company", and 100 percent shares in OAO "Orenburgenergosbyt".

The decision in principle on the divestiture by RAO "UES of Russia" of its share holdings in the ERCs was taken by the Board of Directors on 8 December 2006. The above ERCs are on the list of 8 energy retail companies which are to be divested in the first place. The information about the date and venue of the auction to sell the shares in OAO "Kuban Energy retail Company", which is the last company on the list, are to be announced at a later date.

The public auction to sell the stake held by RAO "UES of Russia" in OAO "Nizhny Novgorod Retail Company", OAO "Sverdlovenergosbyt", OAO "Orenburgenergosbyt", and OAO "Kuzbass Energy Retail Company" and in OAO "Belgorod Retail Company", OAO "Vologda Retail Company" and OAO "Kolskaya Energy Retail Company" will be held on 22 May 2007 and on 23 May 2007, respectively.

Bids will be accepted from 16 April through 21 May 2007 and from 16 May through 22 May, respectively.

The auction reserve price for the share holdings in OAO "Nizhny Novgorod Retail Company", OAO "Sverdlovenergosbyt", OAO "Orenburgenergosbyt', and OAO "Kuzbass Energy Retail Company" determined by an independent appraiser was RUB750 million, RUB1,150 million, RUB1,100 million, and RUB1,400 million, respectively, with a price increment of RUB25 million.

The auction reserve prices for the share holdings in OAO "Belgorod Retail Company" and OAO "Vologda Retail Company" determined based on an independent appraiser's report were RUB250 million, and the reserve price for the stake in OAO "Kolskaya Energy Retail Company" was RUB450 million, with a price increment of RUB10 million.

The auction will be arranged by OAO "Urals Energy Management Company", an Accredited Agent of RAO "UES of Russia", in accordance with the applicable Russian laws and pursuant to the resolution of the Procurement Commission of the Project Center for Pre-sale Preparation and Disposal of Assets of RAO "UES of Russia" of 23 March 2007.

Both Russian and foreign legal entities and natural persons may take part in the auction. The bidder that offers the highest price will be named the winner.