Moscow. 13 June 2006. Anatoly Chubais, Chairman of the Management Board of RAO UES and Fulvio Conti, Chief Executive Officer of Italian utility ENEL have signed a Memorandum concerning cooperation between both companies.

The Memorandum underlines the interest of both parties in the dynamic development of the Russian electricity sector and its restructuring aimed at attracting investments for the construction of new generation capacity and the modernization of existing generation capacity.

The document stresses RAO UES’ interest to attract strategic investors into the Russian electricity sector. On the other hand, ENEL, a company operating not only on its domestic Italian market but also on international markets, is interested to invest in the Russian electricity sector.

The strategic purpose of ENEL is to acquire a stake in wholesale or territorial generating companies, but not less than a blocking minority of 25%+1 share.

As per the provisions of this Memorandum, ENEL shall start to study the investment projects proposed by RAO UES. Said projects refer to a list of pilot projects in WGCs or TGCs, included in the list of priority new capacity commissioning, as well as to the proposed sites for new capacity to be realized under the umbrella of the Investment Guarantee Mechanism.

For this purpose RAO UES will communicate to ENEL all necessary project information and will enable site visits for ENEL specialists.

Once this analysis is completed, ENEL shall assess the feasibility to become a shareholder in said WGCs or TGCs by means of participating in said investment projects and shall present to RAO UES financing proposals. ENEL will have the right to discuss and analyze with RAO UES other investment projects to be realized in Russia.

ENEL and RAO UES have set up a joint working group to ensure proper coordination in this respect.