Moscow, 31 December 2003. Today, with effect from 12:00 Moscow time, the subsidiary of RAO "UES of Russia" ZAO INTER RAO UES"* announces a twofold increase of electricity exports from Russia to Georgia, from 200 MW to 400 MW. This volume of supplies will remain in effect until 7 January 2004.

Previously, Russian electricity has been supplied to the Georgian energy distribution company Telasi, which supplies power to the city of Tbilisi. The additional electricity will be supplied to the United Distribution Company (UDC) to ensure power supply to other parts of Georgia during the New Year holiday season.

The management of RAO "UES of Russia" has once again resumed electricity supplies to Georgia on the request of Georgia's State Minister Zurab Zhvania, despite the fact that the Georgian authorities do not have the necessary financial resources to pay for the supplies.

RAO UES emphasized that Georgia owes in excess of $1m for the electricity previously supplied to it.

The Russian energy company expects the Georgian authorities to meet all their obligations in full.

* ZAO "INTER RAO UES" is an electricity export-import operator on the electricity markets in Russia and abroad. The Company's shareholders are RAO "UES of Russia" (60%) and Rosenergoatom (40%).