Moscow, 9 April. RAO "UES of Russia" has published the interim consolidated financial statements of the Group of RAO "UES of Russia"* prepared in accordance with the International Accounting Standards (IAS) for the three and nine months ended 30 September 2002, which include:

Consolidated Interim Balance Sheet of the as at 30 September 2002.

The accounts receivable of RAO "UES of Russia" Group calculated according to IAS amounted to RUB90.74 billion as of 30 September 2002, down 9% from RUB99.68 billion** on 31 December 2001, which was due to improved collection of receivables.

The short-term payables due to suppliers and contractors also decreased 9% to RUB88.99 billion as of 30 September 2002, as compared to 31 December 2001.**

The taxes payable decreased 21% to RUB38.32 billion on 30 September 2002 from RUB48.7 billion on 31 December 2001 as a result of the restructuring of taxes payable which continued in 2002.

Consolidated Interim Income Statement for the three and nine months ended 30 September 2002.

The operating income of RAO "UES of Russia" Group in the first nine months of 2002 amounted to RUB328.42 billion, an increase of RUB23.39 billion** (or 7.7%) as compared to the first nine months of 2001.

In the first 9 months of 2002, the profit from ordinary activities of RAO "UES of Russia" Group calculated in accordance with IAS made RUB2.12 billion, an increase of RUB1.59 billion** (or 42.7%) compared to the first nine months of 2001. Despite the increase in sales and the reduction in fuel expenses by 2% and taxes (except for income tax), the decline in profit from operations was due to, firstly, the charges to the provision for doubtful debts, and secondly, higher cost of purchased electricity. In the period under review, the volume of electricity purchased from "Rosenergoatom" Concern increased by 3.8%, whereas the Concern's tariffs increased 6%.

In the first 9 months of 2002, the Group's net profit according to IAS made RUB21.27 billion, down 35% from RUB32.72 billion in the same period of 2001. Such decline in profit was due to the change in Russian Ruble's purchasing power, higher interest rates on bank loans, reduced profit from the restructuring of taxes payable and debts owed to creditors. In particular, in the first 9 months of 2002, the income from restructuring of taxes payable and debts owed to creditors amounted to RUB6.91 billion compared to RUB18.28 billion in the same period last year.

Consolidated Interim Statement of Cash Flows for the nine months ended 30 September 2002.

The cash flows from operating activities in the first 9 months of 2002 totalled RUB24.22 billion, a nearly threefold increase compared to the same period of 2001**.

This helped RAO "UES of Russia" Group to fund their activities with the cash from operating activities and increase their cash expenditures for investments activities by RUB6.04 billion to RUB22.18 billion compared to the same period of 2001.**

The financial statements have been audited by "PricewaterhouseCoopers", which was approved as the Group's external auditors by the Annual General Meeting of shareholders of RAO "UES of Russia".

* The Group includes RAO "UES of Russia" as the Parent Company, the regional energos, power plants, and other subsidiary and dependent companies. The financial statements of the Group of RAO "UES of Russia" in accordance with IAS have been prepared since 1997.

** Taking into account the purchasing power of the Russian Ruble as at 30 September 2002.