Moscow, 27 February 2006. At its regular meeting held in absentia, the Audit Committee under the Board of Directors of RAO "UES of Russia" noted the report of the Company's management on the survey of compliance by the subsidiaries and dependent companies of RAO "UES of Russia" with the requirements imposed by the Parent Company on the divestiture of non-core assets.

The Committee pointed to some cases of failure to comply with the rules for the non-core assets divestiture by some of the Company's subsidiaries. In this connection, the Committee urged the management bodies of RAO "UES of Russia" and its subsidiaries to take action to ensure that the resolutions on divestiture of non-core assets are implemented.

Besides, the Committee members stated that it would be necessary to analyze transactions at some subsidiaries of RAO "UES of Russia" with a view to determining their effectiveness and develop recommendations aimed at accelerating the process of non-core assets divestiture at RAO UES subsidiaries.

Also, the Committee reviewed the report on the activities of the Tendering Commission to select auditors for RAO UES subsidiaries for year 2005, and presented information on the new rules for competitive process to select auditors for RAO "UES of Russia" and its subsidiaries in 2006. The rules, which were approved by a resolution of the Russian Government of 30 November 2005, are intended for entities in which the state holds at least a 25% interest.