Moscow, 15 September 2006. Chairman of the Management Board of RAO "UES of Russia" Anatoly Chubais considers today's resolution adopted by the Board of Directors of OAO "Power Machines" an important event that will largely determine the development of the Russian power engineering and electricity industry.

The resolution boils down to turning the large-scale investment programme now being implemented into a starting point for the development and growth of the Russian power engineering industry. Power Machines Group is to be actively involved in the launch and implementation of the electricity industry's investment programme. The process must be started now that the first phase of RAO UES investment programme implementation has got underway and the list of equipment orders is being formulated. That was the rationale behind last year's acquisition by RAO "UES of Russia" of a blocking stake in OAO "Power Machines".

Currently, the management of RAO "UES of Russia" is preparing a forecast of consolidated equipment order for RAO UES energy companies which are implementing the five-year investment programme to modernize the existing and construct new energy facilities. After that, it will be possible to formulate a holistic development strategy for Power Machines Group.

As a measure to ensure the most effective coordination of demand from the electricity industry for equipment and the production capacity of the power engineering group, especially at the first stage of the programme implementation, the major shareholders of OAO "Power Machines"—RAO "UES of Russia", Interros Holding Company, and Siemens AG,—have unanimously approved the appointment of Boris Vainzikher, member of the Management Board and Technical Director of RAO "UES of Russia", as CEO of OAO "Power Machines".

At this important stage, the combination by Boris Vainzikher of his position as RAO UES Technical Director with that of CEO of OAO "Power Machines" emphasizes the attention paid by the Group's major shareholders to its development.

Boris Vainzikher is expected to open a qualitatively new stage in the development of Power Machines Group. This stage is characterized by large-scale orders from energy companies worth billions of dollars, as well as the increased amount of funds allocated for the Group's investment programme, and further development of the power engineering group. The potential amount of investments to be made in the next few years is estimated to be at least USD300 billion.

The Group's managers are to address such strategic goals as increase in the production volume, creation of new technologies, product range modernization, and attract investments needed for the Group's development.

By the year-end, we plan to submit to the Board of Directors of RAO "UES of Russia" the development strategy for Power Machines Group. On the motion of German Gref, Minister of Economic Development and Trade of the Russian Federation, the Board of Directors of RAO "UES of Russia" will explore the possibility of creating a Russian power engineering center on the basis of Power Machines Group.