TGC-9 shareholders took the resolution to extend the nominal capital by placing additional shares by public subscription

The extraordinary meeting of the shareholders of the Open Joint Stock Company “Territorial Generating Company ?9” took the resolution to extend the nominal capital of OJSC “TGC-9” by placing more ordinary inscribed shares amounting to 3 673 132 973 944 ( three million six hundred seventy three milliard one hundred two million nine hundred three thousand nine hundred forty four) with face value 0,003 RUR per share, at the cost of 11 019 398 921 (eleven milliard nineteen million three hundred ninety eight thousand nine hundred twenty one rubles eighty three copeck).

In accordance with the resolution of the general meeting of the shareholders, placing of shares will be carried out by public subscription. The price of placing of additional shares for the persons included into the list of those having preferential right to purchase additional shares distributed is determined by the Board of Directors of OJSC “TGC-9” after expiration of the preferential right.

The additional shares are paid up by monetary means.

The extension of the nominal capital of OJSC “TGC-9” by placing of additional shares is carried out in order to attract monetary means up to 17 033 736 000( seventeen milliard thirty three million seven hundred thirty six thousand rubles). Proposals (offers and orders) for the purchase of OJSC “TGC-9” additional shares are responded to(accepted) by OJSC “TGC-9” at the discretion of the latter, at that, OJSC “TGC-9” is entitled to respond to(accept) the received offers of the prospective purchasers of OJSC “TGC-9” additional shares within the limits of the total amount of the placed additional shares, enough to attract money means for OJSC “TGC-9”, that does not exceed 17 033 736 000 rubles. OJSC “TGC-9” has a right not to respond to the rest offers of the prospective purchasers of additional shares of OJSC “TGC-9” acceptance of which does not exceed the total sum of the attracted monetary means.

All the shareholders of OJSC “TGC-9” have the preferential right to purchase the distributed ordinary shares, the total number of which complies with the number of shares of OJSC “TGC-9” they own. The list of persons having the preferential right to purchase additional ordinary shares is made up on a basis of the list-register of shareholders as of April,17 2007- the date when the list of the persons having the right to participate in the General Shareholders’ Meeting that took the resolution to extend the nominal capital of OJSC “TGC-9”.

Open Joint Stock Company “Territorial Generating Company ?9” was registered on December, 9 2004 and started operational activity on April, 1 2005.

The company includes 23 power stations, 35 boiler shops and 4 heat networks factories located at Perm Territory, Sverdlovsk Region and the Republic of Komi. The installed generating capacity of the company is 3280 MWt, heat capacity - 18952 Gk/h. The staff accounts over 11 thousand people. The General Director of OJSC “TGC-9” is Andrey Yu.Makarov.

The formation of target structure of the Company passed in two stages. On May,1 2006 OJSC TGC-9 was restructured through incorporation of OJSC Perm Generating Company and OJSC Sverdlovsk Generating Company. On February, 1 2007 OJSC “TGC-9” was reorganized by adjoining of OJSC Komi Regional Generating Company. OJSC “ Territorial Generating Company ? 9” has completed s restructuring process.

RAO UES share in OJSC “TGC-9” is over 50, 049%, IES-Holding owns about 30 % of the shares of the company.

The share capital of OJSC “TGC-9” is 17 093 693 607 RUR 64 copeck. Shares of OJSC “TGC-9” are allowed to be put up for auction at RTS from September, 15 2006, at MICEX from September, 22 2006.

The foregoing securities have not been and will not be registered in agreement with the US Law on Securities of 1933 added and altered (“the Law on Securities”) and are not allowed to be proposed for selling within the United States of America or to US citizens having no registration in agreement with the aforementioned Law on Securities or released from registration. There will be no official proposal of the above-mentioned in the United States of America.

The present press release is no advertising or offer of securities sales in the Russian Federation. The Securities were not registered in the Russian Federation and, consequently, the securities can not be allowed to placing or circulation in the Russian Federation.

No statements or allegations concerning the future events, market forecast or other information, contained in the present publication can be relied upon. Neither “TGC-9” nor other legal persons can guarantee that the future events will occur and the anticipated goals will be reached in future. In future there can occur the events, which neither OJSC “TGC-9” nor other legal persons can foresee or control, and such events can cause that the real results due to different factors will significantly differ from the anticipated results described in the publication given. Any person should take into consideration these possible circumstances and shouldn’t rely on the allegations concerning the future events described above. In addition one should keep in mind that the statements and allegations concerning the future events are made only for the period they apply to and in every single case are one of the possible scenarios and for this reason shouldn’t be regarded as the most probable scenario of the future events.