TGC-1 releases its unaudited consolidated report under IFRS for the period ended September 30, 2010.

In Jan-Sep 2010, consolidated revenue increased by 35% - to RUR 36,849 mn. The increase is associated with a number of factors:

- increase of electricity sales (+62%) as a result of expansion of the unregulated market as of January 1, 2010 (from 50% to 60%) and as of July 1, 2010 (from 60% to 80%) and higher spot prices;

- increase of heat generation and, consequently, revenue from heat sales (+25%)

- effective operations on the market, namely, the conclusion of unregulated electricity+capacity contracts. For example, revenue from electricity+capacity contracts shot up more than two-fold to almost RUR 3,130 mn.

Operating expenses were up 45% - to RUR 33,675 mn, in particular, as a result of:

- higher fuel expenses associated with the increase of electricity and heat generation and one-off (and not quarterly like in 2009) gas price hike, as well as due to more expensive fuel oil prices which is the main fuel of Murmanskaya CHPP (+75%);

- growth of electricity generation by Company’s CHPP in condensing mode in 3Q due to higher demand, which resulted in lower fuel efficiency;

- increase of electricity and capacity purchases on the wholesale market in order to fulfill the obligations of unregulated electricity+capacity contracts and export sales and higher purchasing market prices;

- decrease of one-off gains.

Operating profit was down 23% to RUR 3,170 mn. Profit for the period was RUR 2,392 mn, which is 14% less than last year.

The table below summarizes the key financials of TGC-1 for 9M 2010:

Full operational results can be found on corporate website in Reports section.