Moscow, 4 August 2008. On July 29, 2008 OJSC INTER RAO UES Board of Directors approved the agenda for the Extraordinary General Shareholders Meeting, including the items, related to the issue of Russian bonds.

Preliminary securities prospectus of LLC RAO UES INTERNATIONAL FINANCE (100% subsidiary of OJSC INTER RAO UES) was registered by the Federal Financial Markets Service on November 6, 2007; the issue of the bonds was claimed to be organized by Renaissance Capital. The bonds were planned to be allocated at the end of 2007, but the USA mortgage crisis that afflicted western markets in the last half-year 2007 told on Russian debenture market in a certain manner, having made the securities floating unattractive for the Company.

Taking into account the need for funding the running investment programs of INTER RAO UES Group and with a view of optimization of the credit portfolio, which has been formed within the last 3-4 years in order to obtain foreign assets, OJSC INTER RAO UES  intends  to obtain all the corporate approvals required to register the new securities prospectus of LLC RAO UES INTERNATIONAL FINANCE by November 2008 with subsequent entry to the Russian debenture market at the end of 2008 or in early 2009.

The exact date and the allocation value of the issued bonds will be specified by OJSC INTER RAO UES management bodies after having performed the macroeconomic analysis of the market environment and evaluation of the adequacy of this financial instrument to the INTER RAO UES Group demands.

According to the investment program implementation schedule for 2008, OJSC INTER RAO UES management leaves open the possibility of issuing the bonds by the end of 2008.