Moscow, 4 August 2006. RAO "UES of Russia" has released the financial statements of OAO RAO "UES of Russia" for the first half of 2006 prepared according to the Russian Accounting Standards (RAS).

Balance Sheet as of 30 June 2006:

In H1 2006, the capital assets of OAO RAO "UES of Russia" increased to RUB6.82 billion from RUB5.9 billion. As of 30 June 2006, the long-term financial investments amounted to RUB275.13 billion, up RUB10.01 billion from RUB265.12 billion at the beginning of the year. Such an increase in long-term investments was due to the investments in OAO "Kaliningradskaya CHPP-2", OAO "Bureyskaya HPP", OAO "Ivanovskie PGU", and OAO "Sangtuda HPP-1" and acquisition of shares in these companies.

In January-June 2006, the short-term receivables of RAO "UES of Russia" grew to RUB22.65 billion from RUB22.52 billion. The long-term receivables made RUB25.27 billion at 30 June 2006, down RUB0.7 billion from RUB25.97 billion at the beginning of last year.

Over H1 2006, the accounts payable grew to RUB2.90 billion from RUB2.38 billion.

Statement of Operations for H1 2006:

In H1 2006, the revenue of RAO "UES of Russia" amounted to RUB19.16 billion, up RUB4.59 billion from RUB14.57 billion in H1 2005. The increase in revenue during the reporting period was primarily due to the income from shares in other companies.

The cost of products sold in January-June 2006 fell by more than 70% to RUB0.32 billion from RUB1.1 billion. Such change is largely explained by the fact that in July 2005 RAO "UES of Russia" stopped activities related to electricity exports, and, as a result, there were no expenses for purchasing electricity for that purpose in H1 2006.

Because of the higher revenues, the sales profit of RAO "UES of Russia" made RUB16.33 billion in H1 2006, an increase of RUB5.12 billion compared to RUB11.21 billion in the same period last year.

In H1 2006, the pre-tax profit grew by RUB4.45 billion to RUB15.83 billion from RUB11.38billion in H1 2005.

During the reporting period, the profit tax and other mandatory payments grew RUB0.13 billion compared to H1 2005 to RUB3.52 billion.

In H1 2006, the net profit of RAO "UES of Russia" made RUB12.31 billion, an increase of RUB4.32 billion compared to RUB7.99 billion in the same period last year.