Moscow, 7 October 2006. Today, auctions were held to sell the 12.51% stake in OAO "Petersburg Generation Company" ("PGC") owned by OAO "Lenenergo"*.

The public auctions were arranged by the Company's Accredited Agent, ZAO "Deutsche UFG", the Russian wholly-owned subsidiary of Deutsche Bank Group.

There were 10 public auctions held successively. The first nine auctions were held to award share purchase agreements, each for 7,418,086 ordinary shares and 3,806,369 preferred shares in PGC, and the tenth auction was held for the share purchase agreement for 7,418,090 ordinary shares and 3,806,368 preferred shares in PGC. Each auction lot involved approximately 1.25% of the generation company's shares.

The shareholding was sold in ten lots in order to attract more auction participants and maximise the proceeds.

Bids were accepted from 29 September through 2 October 2006. The starting price for the 12.51% stake in PGC was RUB2,768 million, and the starting price for each lot was approximately RUB276,843,000, with a price increment of RUB5 million.

In ten auctions, the agreements were awarded to the highest bidder, ZAO "ABN AMRO Finance".

The selling price for the first lot was RUB456.843 million (up RUB180 million above the starting price), for the second lot RUB451.843 million (up RUB175 million), for the third lot RUB491.843 million (up RUB215 million), for the fourth lot RUB386.843 million (up RUB110 million), for the fifth lot RUB391.843 million (up RUB115 million), for the sixth lot RUB386.843 million (up RUB110 million), for the seventh lot RUB371.843 million (up RUB95 million), for the eighth lot RUB376.843 million (up RUB100 million), for the ninth lot RUB376.843 million (up RUB100 million), and for the tenth lot RUB391.843 million (up RUB115 million).

As a result of the auction, the total bid price for the 12.51% stake in OAO "PGC" reached RUB4.083 billion, which is RUB1.315 billion more than the auction starting price.

After each auction, auction results protocols and agreements for the purchase of PGC shares were executed with the preferred bidder.