Moscow, 10 December 2004. The Appraisal Committee under the Board of Directors of RAO "UES of Russia" has reviewed the reports of independent appraisers determining the market value of shareholdings in OAO "Volzhskaya HPP", OAO "Nizhegorodskaya HPP", OAO "Cascade of Upper-Volga HPPs", OAO "Zhigulevskaya HPP", OAO "Saratovskaya HPP", OAO "Kamskaya HPP", OAO "Votkinskaya HPP", OAO "Sayano-Shushenskaya HPP", OAO "Zeyskaya HPP", OAO "Bureyskaya HPP", OAO "Boguchanskaya HPP", OAO "Sulakenergo", OAO "Zaramagskie HPPs", OAO "KabbalkHPP", OAO "Zelenchukskie HPPs", OAO "UK VoGEK" and the property of Novosibirskaya HPP, and deemed it possible to use them for determining the money value of the property to be contributed to the authorized capital of the hydrogenation company of the wholesale electricity market (Hydro-WGC).

In accordance with appraisal reports as at 1 October 2004:

- the value of 83.31% stake in OAO "Volzhskaya HPP" is RUB19,569,504,000; the value of 1 ordinary share within this shareholding is RUB8.00.
- the value of 100% stake in OAO "Nizhegorodskaya HPP" is RUB3,353,977,000; the value of 1 ordinary share within this shareholding is RUB707.71.
- the value of 100% stake in OAO "Cascade of Upper-Volga HPPs" is RUB2,480,853,000; the value of 1 ordinary share within this shareholding is RUB20.12.
- the value of 84.11% stake in OAO "Zhigulevskaya HPP" is RUB16,822,615,000; the value of 1 ordinary share within this shareholding is RUB5.01.
- the value of 100% stake in OAO "Saratovskaya HPP" is RUB12,844,678,000; the value of 1 ordinary share within this shareholding is RUB1,039.00.
- the value of 100% stake in OAO "Kamskaya HPP" is RUB3,134,880,000; the value of 1 ordinary share within this shareholding is RUB22,093.00.
- the value of 59.84% stake in OAO "Votkinskaya HPP" is RUB3,404,574,000; the value of 1 ordinary share within this shareholding is RUB12.68.
- the value of 78.91% stake in OAO "Sayano-Shushenskaya HPP" is RUB33,170,000,000; the value of 1 ordinary share within this shareholding is RUB20.72.
- the value of 56.39% stake in OAO "Zeyskaya HPP" is RUB3,405,909,000; the value of 1 ordinary share within this shareholding is RUB5.83.
- the value of 74.09% stake in OAO "Bureyskaya HPP" is RUB1,958,000,000; the value of 1 ordinary share within this shareholding is RUB5.50.
- the value of 64.23% stake in OAO "Boguchanskaya HPP" is RUB1,170,000,000; the value of 1 ordinary share within this shareholding is RUB0.29.
- the value of 61.20% stake in OAO "Sulakenergo" is RUB920,511,000; the value of 1 ordinary share within this shareholding is RUB2.40.
- the value of 88.44% stake in OAO "Zaramagskie HPPs" is RUB821,085,000; the value of 1 ordinary share within this shareholding is RUB638.00.
- the value of 97.29% stake in OAO "Zelenchukskiye HPPs" is RUB925,226,000; the value of 1 ordinary share within this shareholding is RUB9.26.
- the value of 50.34% stake in OAO "KabbalkHPP" is RUB839,000; the value of 1 ordinary share within this shareholding is RUB2.27.
- the value of 100% stake in OAO "UK VoGEK" is RUB14,700,000; the value of 1 ordinary share within this shareholding is RUB98,000.00.

On 15 January 2004, the Appraisal Committee approved the basic procedure for assets valuation in the establishment of WGCs.

In accordance with the procedure, RAO "UES of Russia" engaged, for the purpose of valuation of the property contributed to the authorized capital of the Hydro-WGC, the United Appraisers Consortium consisting of ZAO "ABM Partner", ZAO "Nezavisimy Ekspertno-Otsenochny Tsentr" ("Independent Expert Examination and Appraisal Center") and OOO "Fikon"; a Consortium consisting of ZAO "Kim & Partners", OOO "Institut Problem Predprinimatelstva" ("Institute for Entrepreneurship Issues"); and a Consortium consisting of OOO "AKF Top-Audit", ZAO "Otechestvo" ("Fatherland"), INUPEK Institution, and ZAO "ENPI Consult".

The appraisal was performed in accordance with the Methodology for Valuation of the Business and Assets of OAO RAO "UES of Russia" and its SDCs developed by Deloitte & Touche.

Taking into account the results of the discussion, the Appraisal Committee considered it possible to use the presented appraisal reports for the purpose of determining the money value of the property to be contributed to the authorized capital of the Hydro-WGC.

The Board of Directors of RAO "UES of Russia" plans to consider the Company's participation in the Hydro-WGC at its meeting scheduled to be held on 24 December 2004.