Moscow, 28 September 2006. RAO "UES of Russia" and OAO "Southern Generation Company TGC-8" are continuing the process to select an investor to finance the construction of two generation facilities on the site of OAO "Experimentalnaya TPP".

The resolution adopted by the Board of Directors of RAO "UES of Russia" in June 2006 envisages construction of one or two power units of at least 120 MW on the plant site and in the existing plant building.

Investors interested in this projects may submit their bids to RAO "UES of Russia" by 1 November 2006.

The investor selected through the competitive process will be required to provide finance for the project and ensure that the necessary capacity comes on line by the agreed deadline. In the selection of a technical solution, RAO "UES of Russia" will prioritize the construction of generating capacity utilizing circulating fluidized bed combustion of coal.

The investments needed to upgrade the Eksperimentalnaya TPP are expected to be raised through issuance of additional shares, which will be placed through closed subscription (private placement) with the selected investor. The decision to that effect was approved by the Board of Directors of RAO "UES of Russia" at its meeting held 30 August 2006. The potential investor may acquire up to a 75% plus one share in OAO "Experimentalnaya TPP". The placing price will be set not lower than the market value of the plant's shares.

The Experimentalnaya TPP is in urgent need of an upgrade due to the high degree of wear of its equipment, most of which was put into operation back in 1954. This results in a combination of low reliability and considerable expenses required to keep the power plant in working order.