According to the results of the conversion of Depositary Receipts (ADR and GDR) of JSC RAO UES of Russia into Depositary Receipts of JSC RusHydro (GDR), more than half the holders of RAO UES of Russia receipts decided to convert their securities into GDR of JSC RusHydro.  JSC RusHydro’s depositary bank The Bank of New York Mellon advises that the issue of GDR of JSC RusHydro for holders of RAO UES of Russia receipts will account for 1.71% of the authorised equity capital of JSC RusHydro (the maximum volume of the issue could have been 3.22 % of the authorised equity capital).  It is assumed that, in the future, the volume of the JSC RusHydro GDR programme will by increased through new investors and shareholders.

According to the implemented reorganisation plan for RAO UES of Russia, the owners of RAO UES of Russia Depositary Receipts had several options for converting their securities (by US law, the first two options were not available to certain American investors):

·         In the form of JSC RusHydro GDR;

·         In the form of JSC RusHydro ordinary shares; or

·         In the form of money received by JSC RAO UES of Russia depositary banks from sale of the JSC RusHydro shares due the owner (the given 

          option was also the default option for investors who did not make a specific choice).

On 17 June, 2008, The Bank of New York officially established the JSC RusHydro sponsored GDR programme.  The programme was launched in accordance with the Regulation S and Rule 144À of the US legislation on securities on the basis of permission from the Federal Service for the Financial Markets of Russia for trading in JSC RusHydro ordinary shares outside the Russian Federation.  1 GDR certifies rights in relation to 100 registered ordinary shares in JSC RusHydro. By resolution of the Federal Service for the Financial Markets, it was established that the number of JSC RusHydro shares for trading outside the Russian Federation by means of placement of foreign securities should not exceed 37.5 billion (15% of the Company’s authorised equity capital).

The JSC RusHydro Depositary Receipts attracted the largest number of holders of JSC RAO UES of Russia receipts among all those created during the company reorganisation (55% of the total). The successful launch of the JSC RusHydro GDR programme testifies to the confidence foreign investors feel in the Company’s prospects and creates the preconditions for increasing the liquidity of the Company’s securities and for entering the international stock markets.