Moscow, 8 December 2004. The Appraisal Committee under the Board of Directors of OAO RAO "UES of Russia" considered reports on the appraisal of market value of shareholdings in OAO "Permskaya TPP" and the property of Verkhnetagilskaya TPP to be contributed to the authorized capital of OAO "WGC-1".

In accordance with appraisal reports as at 1 July 2004:

• the value of 100% stake in OAO "Permskaya TPP" is RUB13,522,714,000; the value of 1 ordinary share within this shareholding is RUB26.54.
• the value of the property of Verkhnetagilskaya TPP is RUB3,680,806,000.

The Appraisal Committee considered the reports on the appraisal of market value of shareholdings in OAO "Pskovskaya TPP", OAO "Stavropolskaya TPP" and OAO "Troitskaya TPP" to be contributed to the authorized capital of OAO "WGC-2".

In accordance with appraisal reports as at 1 July 2004:

• the value of 50% stake in OAO "Pskovskaya TPP" is RUB802,075,000; the value of 1 ordinary share within this shareholding is RUB2.02.
• the value of 51% stake in OAO "Stavropolskaya TPP" is RUB3,410,940,000; the value of 1 ordinary share within this shareholding is RUB4,923.04.
• the value of 100% stake in OAO "Troitskaya TPP" is RUB6,535,714,000; the value of 1 ordinary share within this shareholding is RUB65.

The Appraisal Committee considered the reports on the appraisal of the market value of shareholdings in OAO "Ryazanskaya TPP", OAO "Kirishskaya TPP", OAO "Novocherkasskaya TPP", and OAO "Krasnoyarskaya TPP-2" to be contributed to the authorized capital of OAO "WGC-6".

In accordance with appraisal reports as at 1 July 2004:

• the value of 100% stake in OAO "Ryazanskaya TPP" is RUB5,907,706,000; the value of 1 ordinary share within this shareholding is RUB24.47.
• the value of 100% stake in OAO "Novocherkasskaya TPP" is RUB6,481,225,000; the value of 1 ordinary share within this shareholding is  RUB28.77.
• the value of 100% stake in OAO "Krasnoyarskaya TPP-2" is RUB3,587,254,000; the value of 1 ordinary share within this shareholding is RUB17.99.
• the value of 95.18% stake in OAO "Kirishskaya TPP" is RUB7,011,357,000; the value of 1 ordinary share within this shareholding is RUB31.21.

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 OAO "WGC-1", the Consortium of appraisers consisting of OOO "Pacioli. Audit Company", OOO "KO-Invest", and ZAO "Professional Appraisal Center".

The appraisal of the property contributed to the authorized capital of OAO "WGC-2" was carried out by the Consortium of appraisers consisting of ZAO "Rossiyskaya Otsentka" ("Russian Appraisal"), ZAO "National Appraisal and Consulting Agency", and OOO "Investitsionnaya Otsenka Otkrytie" ("Discovery Investment Appraisal [Firm]").

To determine the market value of the property contributed to the authorized capital of OAO "WGC-6", OAO RAO "UES of Russia" engaged the Consortium of Appraisers,—Expert Group – Baker Tilly Russaudit.

The appraisal works were performed using 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 money valuation of the property being contributed to the authorized capital of OAO "WGC-1", OAO "WGC-2", and OAO "WGC-6".

The Board of Directors of OAO RAO "UES of Russia" plans to consider the question of the Company's participation in the thermal WGCs (OAO "WGC-1", OAO "WGC-2", and OAO "WGC-6") at the meeting scheduled for 24 December 2004.