Moscow, 29 May 2008. Today, RAO "UES of Russia" held auctions to sell its shareholdings in OAO "Komi Energy Retail Company", OAO "Stavropolenergosbyt", OAO "Bryansk Energy Retail Company", and OAO "Arkhangelsk Energy Retail Company". Bids for the stakes were accepted from 19 May to 28 May 2008.

The public auctions were arranged by OAO "Urals Energy Management Company", Accredited Agent of RAO "UES of Russia", in accordance with the applicable laws of the Russian Federation and pursuant to the resolutions taken by the RAO UES Board of Directors on 8 May 2007.

The start price for the stakes in the ERCs was the following:

• 49 percent stake in OAO "Bryansk Retail Company": RUB187.5 million;
• 49 percent stake in OAO "Arkhangelsk Energy Retail Company": RUB165 million;
• 50.11 percent stake in OAO "Komi Energy Retail Company": RUB187.5 million;
• 55.13 percent stake in OAO "Stavropolenergosbyt": RUB325 million.

Results of the Auctions

The 49 percent stake in Bryansk Energy Retail Company was sold to OOO "Stroy Deco", which offered the highest price for the shares, RUB260 million. The winning bid was RUB72.5 million higher than the auction start price.

There were three bidders in the auction to sell the stake in OAO "Bryansk Energy Retail Company".

The 49 percent stake in OAO "Arkhangelsk Energy Retail Company" was sold to OAO "Roskommunenergo" for RUB166 million. The winning bid was RUB1 million higher than the auction start price.

There were two bidders in the auction to sell the stake in OAO "Arkhangelsk Energy Retail Company".

The 50.11 percent stake in Komi Energy Retail Company was sold to OOO "Center Region Invest", which offered the highest price for the shares, RUB187.501 million.

There were two bidders for the stake in OAO "Komi Energy Retail Company".

The 55.13 percent stake in OAO "Stavropolenergosbyt" was sold to OOO "USB Initsiativa" for RUB475 million. The winning bid was RUB150 million higher than the auction start price.

There were four bidders for the stake in Stavropolenergosbyt.

Upon completion of the auctions, RAO "UES of Russia" and the auction winners signed auction minutes and Share Purchase Agreements.