Moscow, 18 February 2004. RAO "UES of Russia" has published the interim consolidated financial statements of the Group of RAO "UES of Russia"* prepared in accordance with the International Accounting Standards (IAS) for the first 9 months of 2003.

The Q1-3 2003 financials of RAO UES Group include the following:

Consolidated Balance Sheet as of 30 September 2003:

As of 30 September 2003, the total assets of the Group of RAO "UES of Russia" grew RUB20 billion to RUB1,081 billion from year-end 2002 (31 December 2002). The Group's fixed assets were RUB901 billion, whereas the value of its current assets was RUB180 billion , up 10% from 31 December 2002.

As of 30 September 203, the accounts receivable of RAO UES Group totalled RUB103.9 billion, an increase of 12% from the beginning of the year. That was due to the increase in the advances paid to supplies of fuel and other key inventories. The accounts payable of RAO UES Group (including the advances received from electricity consumers) grew RUB 6.5 billion to RUB90.9 billion as of 30 September 2003. Such increase in payables was due to the increased share of advances paid by consumers for electricity and heat supplies.

Consolidated Income Statement for First 9 Months of 2003

The operating income of RAO "UES of Russia" Group in the first 9 months of 2003 amounted to RUB 419.8 billion, an increase of RUB77.4 billion (or 23%) as compared to the same period of 2002. The Group's operating expenses in the first 9 months of 2003 grew year-on-year RUB42.4 billion to RUB382.6 billion. The bulk of the increase in the expenses was due to the higher cost of purchased fuels and electricity, which totalled RUB33.4 billion over the 9 months of 2003..

As a result, the Group had an operating profit of RUB37.2 billion in the first 9 months of 2003, an increase of almost 17 times from RUB2.2 billion in Q1-Q3 2003.

The Group's net profit in the first 9 moths of 2003 made RUB16.6 billion, down from RUB22.1 billion in the first 9 months of 2002, when the Group's net profit was primarily affected by the financial effect of the revenue from assessment of the deferred corporate income tax as a result of fixed assets revaluation as of 1 January 2002.

Consolidated Cash Flow Statement for the First 9 Months of 2003:

The Group's cash flow from operating activities in the first 9 months of 2003 was RUB 42.6 billion, a 72% (RUB17.8 billion) increase compared to the same period last year. The Group allocated RUB37.8 billion of its own funds for investments, which represents an increase of RUB14.7 billion in year-on-year terms.

The financial statements have been audited by KPMG, approved as the Group's external auditors by the AGM of RAO "UES of Russia" shareholders.