Moscow. 1 October 2004. ZAO "Inter RAO" is starting operations in the competitive trading segment (CTS) of the wholesale electricity market. In October – November, the Company intends to put up for sale up to 30 million kWh monthly. This resolution was proposed by ZAO "Inter RAO UES" and approved by the Supervisory Board of NP "ATS" in order to reduce the possible financial risks and subsequent analysis of activities of ZAO "Inter RAO UES" in the competitive trading segment. In November-December this year, the Supervisory Board of NP "ATS" will review the results of the Company's operations and take a decision on whether to permit it to sell up to 300 million kWh of electricity on the competitive market monthly.

Also, the Company electricity may purchase in the competitive market segment to meet its obligations under export contracts.

One of the goals of Inter RAO UES participation in the competitive market segment is to fine-tune the Company's operational processes in a truly competitive environment, which will ensure its efficient operation in a liberated power marketplace.

In 2004, ZAO "Inter RAO UES" developed its own trading strategy which was tried out in the simulation trading in the electricity market, and prepared and tested the mathematical model enabling it to forecast with a high degree of certainty, the price formation in the competitive segment. The trading strategy and price forecasting method is based on the performance analysis of the "Inter RAO UES" subsidiaries on the foreign electricity markets, primarily on the Nordic power exchange NordPool.

"Inter RAO UES" emphasized that the Company will operate in the competitive market segment in compliance with the rules and regulations in force, which do not provide for any privileges or special rules for the Company or electricity exports and imports.

--------------------------------------------------------------------------------
* ZAO "INTER RAO UES" is a subsidiary of RAO "UES of Russia" (60% stake) and Rosenergoatom (40%). The Company performs the functions of an export-import operator for RAO "UES of Russia" Holding Company and State Concern "Rosenergoatom".