Moscow, 24 April 2006. RAO "UES of Russia" has published the consolidated financial statements of RAO UES Group* prepared in accordance with the International Financial Reporting Standards (IFRS) for the first nine months of 2005.

Consolidated Interim Balance Sheet as of 30 September 2005:

As at 30 September 2005, the Property, Plant, and Equipment (PP&E) of RAO UES Group stood at RUB921,016 million, an increase of RUB28,135 million from 1 January 2005 (RUB892,881 million). The increase in the book value of PP&E was due to the fact that the capital expenditures in PP&E were in excess of the amount of depreciation, disposals and impairment charges, and to the acquisitions of ZAO "Moldavskaya GRES" (Republic of Moldova) and ZAO "Electricheskie Seti Armenii" (Republic of Armenia).

The Group's total assets increased over the nine months ended 30 September 2005 by RUB60,459 million to RUB1,187,457 million. Of this amount, the Group's non-current assets made RUB966,150 million, up RUB33,741 million, while the current assets were RUB221,307 million, an increase of RUB26,718 million from the beginning of the year.

The accounts receivable increased by RUB20,203 million during the period under review to RUB131,445 million as at 30 September 2005. The accounts payable in the first nine months of 2005 totalled RUB145,216 million, which represents an increase of RUB18,624 million from 1 January 2005.

The movements in the accounts receivable and payable during the period under review were largely influenced by seasonality factors. In particular, the accounts payable were influenced by the increase in the advances issued to suppliers and contractors, VAT reclaimable, and tax prepayments. The increase in the accounts payable was largely due to the seasonal growth in debts owed to suppliers and contractors.

Consolidated Interim Statement of Operations for the First 9 Months of 2005

The Group's revenues and other operating income in the first nine months of 2005 amounted to RUB544,517 million, an increase of RUB66,804 million (or 14%) compared to the same period of 2004.

The Group's operating expenses in January-September 2005 grew RUB67,391 million, or 15%, to RUB502,551 million. The increase in overall expenses was mainly driven by increases in all fuel prices.

Over the reporting period, the Group's operating profit declined in year-on-year terms by RUB587 million to RUB41,966 million. The profit before profit tax and minority interests amounted to RUB29,504 million, down RUB1,253 million.

The earnings before minority interests grew in the first nine months of 2005 by RUB6,342 million to RUB11,088 million.

In January-September 2005, the Group's net profit amounted to RUB9,749 million, down RUB4,354 million compared to the same period of 2004. Such a decrease in the net profit was primarily due to the fact that the operating expenses grew at a faster rate than operating income.

Consolidated Interim Cash Flow Statement for 9 Months of 2005

The cash flow from operating and financing activities in the three quarters of 2005 totalled RUB70,544 million, an increase of RUB10,567 million from the first nine months of 2004. In January-September 2005, the Group allocated RUB72,099 million in cash for investing activities, up RUB18,986 million compared to the same period of 2004.

The financial statements were audited by ZAO "PricewaterhouseCoopers Audit", approved as the Group's external auditors by the AGM of RAO "UES of Russia".