Moscow, 1 August 2005. RAO "UES of Russia" has published the financial statements of OAO RAO "UES of Russia" (the Parent Company) prepared in accordance with the International Financial Reporting Standards (IFRS) for 2004.

Balance Sheet as of 31 December 2004:

The Company's total assets as of 31 December 2004 were RUB286,781 million, an increase of RUB10,953 million. The Company's non-current assets in 2004 grew to RUB259,473 million, up RUB17,211 million, while the current assets declined by RUB6,258 million to RUB27,308 million as at 31 December 2004.

As at 31 December 2004, the property, plant, and equipment of OAO RAO "UES of Russia" were RUB12,601 billion, a decrease of RUB15,480 million from the year end 2003. Such a decrease in the property, plant and equipment was primarily due to the contribution of property worth RUB10,494 million to the subsidiaries' share capitals (including the share capitals of OAO "Nizhegorodskaya HPP", OAO "Saratovskaya HPP", and OAO "WGC-5"). The Company's investments in subsidiaries and associates in 2004 totalled RUB26,229 million.

The Company's accounts receivable and prepayments declined in 2004 by RUB 2,217 million to RUB 10,385 million. The accounts payable fell by RUB734 million to RUB2,350 million.

Statement of Operations for 12 Months of 2004:

The Company's operating income in 2004 was RUB42,917 million, down RUB15,036 million on 2003. The changes in income were caused by the following factors: reduction of the income from electricity transmission due to the reduction of the subscription fee of OAO RAO "UES of Russia" in connection with the establishment of OAO "UES FGC" and OAO "UES SO-CDA" and introduction of separate fees for their services, and the decrease in income from electricity exports in connection with transfer of the functions of electricity export/import operator to ZAO "INTER RAO UES".

The Parent Company's total costs in 2004 fell by RUB10,325 million to RUB16,491 million. The lower costs were chiefly due to the reduction of operation and maintenance costs of HV transmission lines in connection with their transfer to OAO "UES FGC".

The Company's income from operations amounted to RUB26,426 million in 2004, down RUB4,711 million compared to 2003.As a result, the net income of RAO "UES of Russia" in 2004 amounted RUB17,411 million, a RUB9,438 million decline from 2003.

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