Moscow, 19 March 2007. RAO "UES of Russia" has published the consolidated financial statements of RAO UES Group* prepared in accordance with the International Financial Reporting Standards (IFRS) for the first nine months of 2006.

Consolidated Interim Balance Sheet as of 30 September 2006

As at 30 September 2006, the Property, Plant, and Equipment (PP&E) of RAO UES Group stood at RUB994,789 million, an increase of RUB39,657 million from 1 January 2006 (RUB955,132 million).

The increase in the book value of PP&E was due to the fact that the capital expenditures in PP&E were in excess of the amount of depreciation, disposals and impairment charges, and to the acquisition of control over OAO "Heat Energy Company" (currently the Belgorod Regional Generation branch of OAO "TGC-4"), and the recovery of control over OAO "Kurganenergo".

The Group's total assets increased over the nine months ended 30 September 2006 by RUB73,557 million to RUB1,291,456 million. Of this amount, the Group's non-current assets made RUB1,026,994 million, up RUB34,798 million, while the current assets were RUB264,462 million, an increase of RUB38,759 million from the beginning of the year.

The accounts receivable increased by RUB13,689 million during the period under review to RUB146,022 million as at 30 September 2006. The accounts payable in the first nine months of 2006 totalled RUB96,828 million, which represents an increase of RUB10,4960 million from the beginning of the year.

The movements in the accounts receivable and payable during the period under review were largely influenced by seasonality factors. In particular, the accounts payable were influenced by the increase in the advances to suppliers and contractors, and tax prepayments. The increase in the accounts payable was largely due to the seasonal growth in debts owed to suppliers and contractors, as well as fuel price growth.

Consolidated Interim Statement of Operations for the First 9 Months of 2006

The Group's revenues and other operating income in the first nine months of 2006 amounted to RUB654,316 million, an increase of RUB107,660 million (or 19%) compared to the same period of 2005.

The Group's operating expenses in January-September 2006 grew RUB83,136 million, or 17%, to RUB585,687 million. The increase in overall expenses was mainly driven by price increases for all fuels.

Such dynamic of revenues and expenses was attributable, on the one hand, to the increased use of the Group's services, electricity and heat price growth, and on the other hand, to the price hikes for fuel oil, coal, and natural gas, as well as the growing fuel consumption.

Over the reporting period, the Group's operating profit grew in year-on-year terms by RUB24,524 million to RUB68,629 million. The income before profit taxes and minority interests amounted to RUB57,459 million, up RUB25,816 compared to the same period the year before.

The Group's net profit for 9M 2006 grew yoy RUB1,233 million to RUB11,994 million, which was due to additional assessment of the deferred income tax in the amount of RUB22 billion and the increased share in the dependent companies' losses by RUB200 million.

In the first 9 months of 2006, the profit attributable to the Group's minority interests increased by RUB6,711 million to RUB8,906 million year on year.

Consolidated Interim Cash Flow Statement for 9 Months of 2006

The cash flow from operating and financing activities in the three quarters of 2006 totalled RUB88,913 million, an increase of RUB16,202 million from the first nine months of 2005. In January-September 2006, the Group allocated RUB82,899 million in cash for investing activities, up RUB8,633 million compared to the same period of 2005.

The financial statements were audited by ZAO "PricewaterhouseCoopers Audit", approved as the Group's external auditors by the AGM of RAO "UES of Russia".