Moscow. 24 January 2005. State registration has been received by the management companies spun off from OAO "Ivenergo" and OAO "Vladimirenergo" as a result of reorganization in accordance with the basic restructuring plan. OAO "Ivanovo Management Energy Company" was registered on 14 January 2005, and OAO "Vladimir Energy Company" on 15 January 2005.

The state registration of OAO "Vladimir Generation Company", OAO "Vladimir Energy Retail Company", OAO "Ivanovo Generation Company", and OAO "Ivanovo Energy Retail Company" was effected on 1 January 2005.

As at 24 January 2005, the unbundling by lines of business was completed in 21 regional energos of RAO "UES of Russia": OAO "Belgorodenergo", OAO "Kalugaenergo", OAO "Bryanskenergo", OAO "Voronezhenergo", OAO "Pskovenergo", OAO "Vladimirenergo", OAO "Volgogradenergo", OAO "Ivenergo", OAO "Karelenergo", OAO "Kostromaenergo", OAO "Marienergo", OAO "Penzaenergo", OAO "Udmurtenergo", OAO "Chuvashenergo", OAO "Astrakhanenergo", OAO "Lipetskenergo", OAO "Rostovenergo", OAO "Ryazanenergo", OAO "Tambovenergo", OAO "Tverenergo", OAO "Yarenergo".

In January-February 2005, it is expected that the following companies will be registered with the regulatory authorities: companies spun off from OAO "Chelyabenergo" (31 January 2005 - OAO "Chelyabinsk Generation Company", OAO "Chelyabinsk Management Energy Company", OAO "Chelyabenergosbyt" and OAO "Yuzhnouralskaya TPP"), OAO "Kurskenergo" (1 February 2005 - OAO "Kursk Generation Company", OAO "Kursk Energy Management Company" and OAO "Kurskenergosbyt"), OAO "Mordovenergo" (1 February 2005 - OAO "Mordovia Generation Company", OAO "Mordovia Heat Network Company", OAO "Mordovia Energy Management Company" and OAO "Mordovia Energy Retail Company"), OAO "Nizhnovenergo" (1 February 2005 - OAO "Nizhny Novgorod Generation Company") and OAO "Smolenskenergo" (1 February 2005 - OAO "Smolensk Management Energy Company", OAO "Smolensk Generation Company ", OAO "Smolenskenergosbyt", OAO "Smolenskaya TPP" and OAO "Smolensk Energy Repair Company").

Note for the information of stock market participants and shareholders:

Shares in a spin-off company will be distributed among shareholders of the company reorganized through spin-off.

Shares in the spin-off companies will be distributed to the regional energos' shareholders at a rate set in the reorganization resolution, taking into account the number and class of energos' shares held by each shareholder.

Shareholders who voted against the resolution to reorganize the regional energos or did not take part in the voting on this matter will receive shares in the newly established companies of the corresponding class in the amount equal to the number of shares of that class in the reorganized regional energo held by them as at the date of share placement.

The date on which the shares in the spin-off companies are placed shall be the date of state registration of the companies established as a result of regional energos' reorganization. The new shares will be credited to the securityholder accounts with registrars and securities safekeeping accounts at securities depositories in accordance with the records in the share register of the regional energo concerned as at such date.

The shares will be credited to the securityholder accounts by the Registrar to be appointed by the Boards of Directors of the newly established companies in the very near future (not later than the end of the current month), immediately after an agreement with such Registrar is made.

Share issues of the spin-off companies are expected to be registered with the regulators within one and a half months after the date of companies' state registration. Transactions in such shares may be effected after the state registration of the issues.