Moscow, 20 May 2008. Today, RAO "UES of Russia" held public auctions to sell off its stakes in OAO "UES Engineering Center", OAO "Urals ICE", OAO "SevZap NTC", OAO "Siberian ENTC", OAO "Southern ICE", OAO "Povolzhye ICE".

Bids were accepted from 5 May 2008 until 19 May 2008.

The public auction was arranged by OAO "Urals Energy Management Company", an Accredited Agent of RAO "UES of Russia", in accordance with the applicable Russian laws and pursuant to the resolutions taken by the RAO UES Board of Directors on 26 October 2007.

75 percent minus one share in each of the companies will be put up for the auction. The start prices for the shares equal to the market value determined based on the reports prepared by an independent appraiser were as follows:

• OAO "UES Engineering Center", RUB2.3 billion;
• OAO "Urals ICE", RUB1.125 billion;
• OAO "SevZap NTC", RUB625 million;
• OAO "Siberian ENTC", RUB950 million;
• OAO "Southern ICE", RUB625 million;
• OAO "Povolzhye ICE", RUB360 million.

Auction Results:

The stake in OAO "UES Engineering Center" was purchased by OAO "EnergoAuditControl", which offered the highest price for the shares, RUB4.2 billion.

The auction price was nearly two times higher than the start price.

There were five bidders for the stake in OAO "UES Engineering Center".

The stake in OAO "Urals ICE" was sold to OOO "IC Energo" for RUB4.275 billion. The winning bid was almost 4 times higher than the auction start price. There were seven bidders for the stake in OAO "Urals ICE".

The stake in OAO "Urals ICE" was sold to OOO "IC Energo" for RUB2.275 billion. The winning bid was 3.5 times higher than the auction start price. There were five bidders for the stake in OAO "SevZap NTC".

The stake in OAO "Siberian ENTC" was sold to OOO "Reserve Regional Company " for RUB2.275 billion. The bid was almost 2.5. times higher than the auction start price. There were four bidders for the stake in OAO "Siberian ENTC".

The stake in OAO "Southern ICE" was sold to OOO "Areks" for RUB1.975 billion. The winning bid was 3 times higher than the auction start price. There were seven bidders for the stake in OAO "Southern ICE".

The stake in OAO "Povolzhye ICE" was sold to ZAO "IST-M" for RUB810 million. The bid was almost 2.3 times higher than the auction start price. There were four bidders for the stake in OAO "Povolzhye ICE".

In a statement on the results of today's auctions, Member of the Management Board and Head of RAO UES Project Center Vladimir Avetisyan said: "The auctions were a success. And the most important thing is that we sold only R&D and engineering business, without real estate. Despite that, the winning bids exceeded the start price more than significantly."

The Strategy for the disposal of shares in the R&D and engineering SDCs, which was reviewed by the RAO UES Board of Directors on 27 April 2007 and 22 June 2007, provides, among other things, that the real property is to be spun off from R&D and engineering SDCs. into the companies called AO "Real Estate of the Engineering Center" which will be transferred to OAO "IDC Holding" under the demerger balance sheet after the reorganization of RAO "UES of Russia".

After the auctions, RAO "UES of Russia" and the auction winners signed auction minutes and Share Purchase Agreements in respect of the R&D and engineering companies' shares previously held by RAO UES.

To date, RAO "UES of Russia" received more than RUB16.5 billion in proceeds from the sale of shares in 9 R&D and engineering companies , compared to the target of RUB7.3 billion. This means that the target has been exceeded nearly 2.5-fold.