Moscow. 1 June 2006. OAO "Southern Generation Company - TGC-8" has completed the first stage of establishment of its target corporate structure.

Today, TGC-8 received certificates from the Inspectorate of the Federal Tax Service of Russia for Kirovsky District, city of Astrakhan, confirming that OAO "Astrakhan Regional Generation Company", OAO "Volzhskaya Generation Company", OAO "Rostov Generation Company", OAO "Dagestan Heat Generation Company", and OAO "Stavropol Heat Generation Company" have been removed from the Unified State Register of Legal Persons in connection with their merger with and into TGC-8.

The target corporate structure of OAO "TGC-8" is to be formed through merger of OAO "Astrakhan Regional Generation Company", OAO "Volzhskaya Generation Company", OAO "Rostov Generation Company", OAO "Dagestan Heat Generation Company", and OAO "Stavropol Heat Generation Company" with and into OAO "TGC-8"; later on, they will be followed suit by OAO "Kuban Generation Company", which is scheduled to spin off from OAO "Kubanenergo" on 1 July 2006.

Up to now, OAO "TGC-8" has operated under lease arrangements. In December 2005 and March 2006, the regional generation companies (RGCs) held general shareholder meetings and a joint shareholder meeting with TGC-8 and approved the resolutions required to merge the RGCs with TGC-8. These decisions were backed by the RGCs' minority shareholders.

On 11 May 2006, OAO "TGC-8" registered additional share issues to be exchanged for shares in the RGCs relating to TGC-8 owned by the companies' minority shareholders.

TGC-8 shares are expected to be floated on the stock market in Q3 2006.

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* OAO "TGC-8" was registered with the Inspectorate of the Federal Tax Service of Russia for Kirovsky District, city of Astrakhan, on 22 March 2005. Director General of the Company is Victor Gvozdev. The Company has been operating since 1 July 2005.