Moscow. 8 June 2006. The Federal Service for Financial Markets of Russia (FSFM) registered the report on placement of additional ordinary shares in OAO "Caucasian Energy Management Company" (OAO "KEUK"), placed through closed subscription.

According to the placement report, the following quantity of shares were placed:

• 2,098,945,554 shares, par value RUB1 per share, for a total value of RUB2,098,945,554. The state registration number assigned to the share issue is 1-01-32951-?-001D.

The Board of Directors of RAO "UES of Russia" on 25 March 2005 authorized the issuance and placement of additional shares in OAO "KEUK" by closed subscription as part of the process to turn around and restructure the regional energos in the Caucasus area, OAO "Ingushenergo", OAO "Kabbalkenergo", OAO "Karachaevo-Cherkesskenergo", and OAO "Sevkavkazenergo". Payment for the additional shares in OAO "KEUK" was made with power grid facilities not included in the Unified National Energy Grid (UNEG) owned by the above companies.

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** OAO "Caucasian Energy Management Company" (OAO "KEUK") is a wholly-owned subsidiary of RAO "UES of Russia" performing the functions of the executive body of OAO "Ingushenergo", OAO "Kabbalkenergo", OAO "Karachaevo-Cherkesskenergo", and OAO "Sevkavkazenergo".