Moscow. 1 July 2005. The Federal Service for Financial Markets (FSFM) of Russia registered on 30 June 2005 the share issues of the companies spun off from OAO "Arkhenergo".

At the meeting held yesterday, the FSFM registered the issues of ordinary shares and share placement reports of OAO "Arkhangelsk Generation Company" and OAO "Arkhangelsk Energy Retail Company".

In accordance with the Resolutions on share issuance and share placement reports, the following amounts of shares were issued:

1. OAO "Arkhangelsk Generation Company":

• 1,715,146,860 uncertificated registered preferred shares, par value RUB1.4 per share, for a total value of RUB2,401,205,604. The state registration number assigned to the share issue is 1-01-50126-A;
• 351,787,200 uncertificated registered preferred shares, par value RUB1.4 per share, for a total value of RUB492,502,080. The state registration number assigned to the share issue is 2-01-50126-A.

2. OAO "Arkhangelsk Energy Retail Company":

• 1,715,146,860 uncertificated registered preferred shares, par value RUB0.05 per share, for a total value of RUB85,757,343. The state registration number assigned to the share issue is 1-01-65125-D;
• 351,787,200 uncertificated registered preferred shares, par value RUB0.05 per share, for a total value of RUB17,589,360. The state registration number assigned to the share issue is 2-01-65125-D.

The state registration of the new companies was effected on 1 April 2005.

The share registers of these companies are administered by OAO Moscow Central Depository.

Previously, the FSFM of Russia registered the share issues of the companies spun off from OAO "Kalugaenergo", OAO "Bryanskenergo", OAO "Belgorodenergo", OAO "Voronezhenergo", OAO "Chuvashenergo", OAO "Vladimirenergo", OAO "Marienergo", OAO "Penzaenergo", OAO "Udmurtenergo", OAO "Karelenergo", OAO "Ryazanenergo", OAO "Kostromaenergo", OAO "Ivenergo", OAO "Yarenergo", OAO "Rostovenergo", OAO "Tverenergo", OAO "Chelyabenergo", OAO "Mordovenergo", OAO "Kurskenergo", OAO "Nizhnovenergo", OAO "Smolenskenergo", OAO "Tambovenergo", OAO "Astrakhanenergo", OAO "Volgogradenergo", OAO "Lipetskenergo", OAO "Mosenergo", OAO "Tulenergo", OAO "Sverdlovenergo", OAO "Novgorodenergo", OAO "Stavropolenergo", OAO "Oryolenergo", OAO "Permenergo", OAO "Tomskenergo" and OAO "Dagenergo".

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Information for the attention of stock market participants:

Shares in the spin-off companies were distributed among the existing shareholders of the company reorganized through spin-off.

Shareholders in the reorganized regional energo are entitled to receive, for each share of the relevant category (type) held by them, shares of the same category (class) in each of the newly established companies, at a ratio determined in the resolution on the reorganization.

The date on which the shares in the spin-off companies are placed is the date of state registration of the companies established as a result of regional energos' reorganization. The new shares are to be credited to the securityholder accounts with registrars and to the securities safekeeping accounts with securities depositories in accordance with the records in the share register of the regional energo as at such date.

The new shares are to be credited to the securityholder accounts by the Registrar maintaining the share registers of the newly established companies.