Moscow, 20 May 2008. The Board of Directors of OAO "Chelyabenergosbyt" approved the price of the company's additional share offering at RUB0.3337 per share of RUB0.007 par value. This price is based on the recommendations of the advisor banks and resolutions of the RAO UES Tender Commission.

As resolved by the Board of Directors of RAO "UES of Russia" on 26 October 2007, the additional share offering of OAO "Chelyabenergosbyt" is to be carried out simultaneously with the sale of the stake held by RAO "UES of Russia" in Chelyabenergosbyt, at the same price.

Last week, the Tender Commission of RAO "UES of Russia" reviewed the bids from potential investors and approved a similar price for the 49% stake in OAO "Chelyabenergosbyt" owned by RAO "UES of Russia". The best bid was submitted by ZAO "Chelyabinskoe Upravlenie Energotreidinga".

Taking into account the offering price and provisions of the offering documentation, OAO "Chelyabenergosbyt" is to issue 2,250,000,000 additional ordinary shares (which makes 40.86% of its capital before the offering and 29.01% of its capital after the offering).

The exact number of shares which will be purchased by the strategic investor is to be determined after Chelyabenergosbyt's existing shareholders exercise their pre-emptive right in respect of the company's additional shares.

The proceeds from the sale of the stake held by RAO "UES of Russia" in Chelyabenergosbyt will go to the RAO UES budget and the proceeds from the offering will be used to finance the project to build a coal-fired CHPP with the installed capacity of 120 MW of electricity and 160 Gcal/h of heat in Kopeysk, Chelyabinsk Region.