JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on December 23, 2014.

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§  The Board of Directors approved and resolved to implement the following documents from January 1, 2015:

§  Regulation on Key Performance Indicators (KPIs) of JSC RusHydro.

§  The list of annual and quarterly KPIs of JSC RusHydro.

§  Methodology of calculation and valuation of RusHydro’s KPIs.

Development and implementation of KPIs as well as improvement of regulatory system of RusHydro align with the Company’s strategy. KPIs help to measure progress towards the Company’s goals on a regular basis.

Annual KPIs of Rushydro include:

1.     Total shareholder return (TSR);

2.     Return on equity (ROE);

3.     Percent of small and medium business procurements;

4.     Reliability criterion (simultaneously: number of accidents on the Company’s facilities below determined threshold level; readiness ratio on the Company’s facilities);

5.     Compliance with timeline for capacity commissioning, funding and execution of financing plan;

6.     Financial leverage ratio.

The quarterly KPIs include:

1.     Current liquidity ratio

2.     Reliability criterion - simultaneously:

§  accident rate;

§  absence of fatal accidents or group health injuries at the workplace, if there is an injured person, in the Company and subsidiaries generating electricity;

§  readiness certificate receipt (availability) for the Company’s plants within specified period[i];

§  execution of quarterly funding plans and the investment program YTD.

The list of RusHydro’s KPIs and Methodology of calculation and valuation of KPIs are developed in compliance with the Guideline for KPIs of the state-owned companies approved by the Federal Agency for State Property Management (Rosimushchestvo). New documents were developed in order to improve the efficiency of publicly owned joint stock companies as well as the government’s control over such companies.

[i] The indicator is set for the 1st and 4th quarter of the reporting year.