On May 19, 2001, Morgan Stanley Capital International announced adjustments to the method for calculating its stock indices. As a result of these changes, AO MOSENERGO share prices will be used to calculate this well-known index.

This news positively affected the company's share prices on RTS. By Monday close, MOSENERGO shares skyrocketed 10.7 percent. Tuesday growth was not as fast, but the trend was sustained on active buying.

In addition to market reaction to this significant event, western portfolio managers are expected to show interest in AO MOSENERGO securities. The inclusion in the MSCI index means more potential buyers and "buy" recommendations.
Taking into account lower RAO UES stakes and the exclusion of illiquid Irkutskenergo shares, investment portfolios will likely be revised with more AO MOSENERGO shares included in investment portfolios.

Russia's weighting in the MSCI index went down, while emerging market shares from Europe and Near East grew.

More detailed information on MSCI index can be obtained at: www.msci.ru