JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces its IFRS condensed consolidated interim financial information for the first half of 2012.

RusHydro Group's financial results for the first half of 2011 include the results of a number of retail companies[i], which were accounted for until the disposal date – March 28th, 2011, when these companies were contributed to the share capital of OJSC INTER RAO UES in the course of the share issue of the latter.

1H 2012 financial highlights (in RUR mn)

In the 1st half of 2012, total revenue decreased by 35% from RUR 230,698 mn to RUR 151,155 mn. The Group's total expenses decreased by 30% to RUR 132,614 mn against RUR 188,553 mn in the 1st half of 2011. Reduction in the Group’s revenue and expenses as compared to the same period of previous year is connected with the disposal of retail companies in late March 2011.

Comparable revenue (excluding revenue of disposal group) increased by 12% from RUR 134,913 mn to RUR 151,155 mn. The change is associated with the following factors:

 - growth of electricity sales following the acquisition of LLC Energy Supply Company of Bashkortostan on September 12th, 2011, the financial results of which are included in the Group starting from the acquisition date;

 - decrease of capacity sales due to removal of the special investment component in tariffs of hydropower plants starting from 2012 and implementation of tariffs for hydropower plants of the 2nd pricing zone as from the 2nd quarter of 2011 instead of capacity auctions prices.

Comparable expenses (excluding expenses of the disposal group) rose by 31% from RUR 101,384 mn to RUR 132,614 mn. The growth can primarily be attributed to the following factors:

- higher electricity purchases and power distribution expenses in the Group’s retail segment following the acquisition of LLC Energy Supply Company of Bashkortostan;

- higher fuel expenses for electricity and heat generation by power plants of RAO Energy System of East Group as a result of increased purchases of fuel oil and coal due to disruptions in gas supply together with increased volumes of electricity and heat generation;

- accrual of impairment of accounts receivable of RAO Energy System of East in the 1st half of 2012 as compared to reversal of impairment of accounts receivable in the 1st half of 2011.

In the reporting period, EBITDA decreased by 37% to RUR 31,149 mn compared to RUR 49,312 mn for the same period of the previous year. Decrease of EBITDA is related to a change in the Group's structure and removal of the special investment component in capacity prices starting from 2012.

The Group received a net loss of RUR 468 mn compared to RUR 32,360 mn of net profit in the 1st half of 2011. Net loss occurred due to the following non-cash operations:

- loss from impairment of property, plant and equipment in the amount of RUR 4,757 mn in respect of additions related to cash-generating units impaired in previous periods;

- loss in the amount of RUR 3,669 mn from remeasurement of the net assets of OJSC DRSK, electricity distribution company in the Far East, classified as a discontinued operation to fair value less costs to sell;

- accumulated revaluation loss on shares of OJSC INTER RAO UES in the amount of RUR 6,451 mn recycled to the Income Statement due to significant and prolonged decline in their fair value;

- accrual of impairment of accounts receivable in the amount of RUR 3,698 mn resulting from analysis of past due receivables and estimation of their collectability.

Key indicators of RusHydro Group’s financial position as at June 30, 2012

As at June 30th, 2012, the Group's assets increased by RUR 28,064 mn to RUR 839,847 mn against the comparable figure as at December 31st, 2011. The increase in assets is primarily due to additions to the Group's fixed assets and construction in progress (mainly Sayano-Shushenskaya HPP and Zagorskaya GAES-2) and placing of short-term bank deposits mainly due to additional borrowings received.

As at the end of the reporting period the Group's liabilities rose by RUR 25,635 mn since December 31st, 2011, to RUR 311,759 mn. The increase in the liabilities was mainly caused by new borrowings raised from JSC Sberbank of Russia, JSC Gazprombank, JSC Bank of Moscow, UniCredit Bank Austria AG.

The condensed consolidated financial information of the Group is available on RusHydro’s web site:

http://www.eng.rushydro.ru/investors/reports/.

The results presentation is available at:

http://www.eng.rushydro.ru/investors/presentations/results_presentations/2012/.

[i] JSC Altayenergosbyt, JSC Mosenergosbyt and its subsidiaries, JSC Saint Petersburg Sale Company and its subsidiaries, JSC Saratovenergo, JSC Tambov Energy Retail Company and JSC United Energy Retail Company.

[ii] EBITDA is calculated as operating profit before depreciation of PP&E and non-cash impairment charges.

[iii] Net profit is adjusted for the effects of impairment on the Group's fixed assets, available-for-sale financial assets, remeasurement of net assets of OJSC “DRSK” to fair value less cost to sell.