Moscow. 6 July 2006. Today, RAO "UES of Russia" held a public auction to sell its 47.36% stake in OAO "Yaroslavl Retail Company".*

The public auction was arranged by the Company's Accredited Agent, OOO "Metropol Investment and Finance Company", in accordance with the applicable laws of the Russian Federation and the resolution of the Board of Directors of RAO "UES of Russia" of 21 April 2006.** Bids were accepted from 1 June through 3 July.

Subsidiaries and dependent companies of RAO "UES of Russia", federal and municipal organizations did not take part in the auction.

The auction start price was RUB182.324 million, with a price increment of RUB9 million.

The shareholding was sold to OOO "Transneftservice C", which offered RUB425,324 million.

The auction had six bidders, with the price offered during the auction 2.3 times higher than the auction start price.

After the auction, RAO "UES of Russia" and OOO "Transneftservice C", the auction winner, signed the Auction Protocol and the Contract for Purchase/Sale of the 47.36% stake in OAO "Yaroslavl Retail Company".