One of the most significant steps of the Russian power sector reform came to an end on the 1st of July 2008. The world’s largest power monopoly RAO “UES of Russia” ceased to exist.

The formation of the target model of JSC RusHydro was completed on 1st of July 2008. JSC RusHydro has since become one of the key successors of RAO “UES of Russia”, both in terms of energy production (JSC RusHydro’s share of the Russian power sector is 15%), and as an equity issuer: JSC RusHydro’s shares are traded on the Russian stock exchanges MICEX and RTS. JSC RusHydro is the leading Russian power generating company and the world’s largest quoted hydropower generating company with the capacity of 25GW including 50 power generating assets. The Company is the leading provider of renewable energy in Russia, including hydro, tidal, wind and geothermal energy.

At the final stage of the reorganisation of RAO UES, on the 18th of June 2008, JSC RusHydro launched the Global Depositary Receipts (“GDRs”) programme to improve liquidity of the Company’s shares and to enforce compliance with the rights of RAO UES’s shareholders. The Bank of New York is the Depositary Bank.

The GDR Reg S will be traded on the over-the-counter market outside of the United States. One GDR represents 100 shares of JSC RusHydro. It was determined by the FSFR, the Russian financial markets authority, that number of the JSC RusHydro shares offered outside of the Russian Federation through the GDRs will not exceed 37.5 billion shares, representing 15% of the issued share capital of JSC RusHydro after the reorganization.

At the first stage the depositary bank will provide the issue and distribution of GDRs of JSC RusHydro to the existing shareholders of RAO UES. Due to the shceduel of GDR programe the existing shareholders of RAO UES will be able to apply for the GDRs of JSC RusHydro until the 7th of July 2008. The allocation of the GDRs to the existing shareholders of RAO UES is expected to be completed by the end of July.