On 1 July 2008, formation was completed of the target model for RusHydro (JSC HydroOGK).

Entries have been made in the Unified State Register of Legal Entities on termination of the activities of JSC Irganaiskaya HPP and JSC Cascade of Nizhne-Cherekskiye HPPs in connection with their affiliation with JSC HydroOGK. Entries were also made in the Register on splitoff of JSC HydroOGK State Holding Company and JSC HydroOGK Minority Holding Company from JSC RAO UES of Russia and their simultaneous affiliation with JSC HydroOGK.

This completed the formation of the RusHydro target model as a unified operating company focused on efficient use of hydro resources, creation of the conditions for ensuring UES reliability and development of renewable energy sources.

The decision to increase the authorized equity capital of JSC HydroOGK for the affiliation purposes was made by the Extraordinary General Meeting of Company Shareholders on 12 October 2007.

On 29 April 2008, Russia’s Federal Financial Markets Service registered additional issues of JSC HydroOGK shares for the purpose of reorganization of JSC HydroOGK in the form of affiliation thereto of the said companies.

The conversion ratios for the shares of the affiliated companies into ordinary shares of JSC HydroOGK were determined based on the assessment of the market value of the shares of the said companies as of 1 April 2007.

State registration of the reports on the results of additional issues of HydroOGK shares placed by means of conversion of the shares of the affiliated companies is scheduled for July 2008.

Let us recall that on 9 January 2008, the first stage was completed in the consolidation of RusHydro, resulting in affiliation of 20 subsidiaries and dependent companies.