Moscow, 29 December 2006. Public auctions for the right to make contracts to purchase 93.35 % stakes in OAO "Zapadno-Sibirskaya CHPP" and OAO "Yuzhno-Kuzbasskaya TPP*", held by RAO "UES of Russia", OAO "Kuzbassenergo", and OAO "SIBENCO" will be held on 15 and 29 March 2007, respectively.

Indications of interest in taking part in the auctions for the right to purchase shares in OAO "Zapadno-Sibirskaya CHPP" and OAO "Yuzhno-Kuzbasskaya TPP" will be accepted from 9 January through 5 March 2007 and from 9 January through 19 March 2007, respectively.

Bids for the auctions will be accepted 19 February through 9 March 2007 and 1 March through 23 March 2007, respectively.

The public auctions will be arranged by an Accredited Agent, ZAO "United Financial Group", in accordance with the applicable laws of the Russian Federation and the resolution of the Board of Directors of RAO "UES of Russia" of 23 December 2005.**

The start prices of the auction for the right to make agreements to purchase shares in OAO "Zapadno-Sibirskaya CHPP" and OAO "Yuzhno-Kuzbasskaya TPP" have been set at RUB5.7 billion and RUB4 billion, respectively, with a price increment of RUB50 million.

The auction winners be the bidders that submit the highest bid.

Upon completion of the auction, the winners will sign Share Purchase Agreements. Under the auction terms, the winners will become owners of the shares subject to approval by the Federal Antimonopoly Service of Russia, submission of a public bid for the shares*** and full payment of the shares within 14 calendar days after the contract date.

The auction notices may be viewed in the section Procurement and Announcements / Information about RAO UES procurement and sales on the Company's Russian website.

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* The installed capacity of the Zapadno-Sibirskaya CHPP and Yuzhno-Kuzbasskaya TPP (both plants burn coal) is 600 MW and 554 MW for electricity and 1,307.5 and 560 Gcal/h for heat, respectively. The plants are located in the immediate neighbourhood of the largest iron and steel mills in the Kemerovo Region. The Zapadno-Sibirskaya CHPP supplies about 42 percent of its heat directly to the West Siberian Metallurgical Plant, and the Yuzhno-Kuzbasskaya TPP generates 125 MW of electricity in summer and 250 MW in winter to supply power to coal and ore mines, and the utilities sector in Southern Kuzbass. For further information on the power plants whose stakes are put to sale, please go to:

** On 23 December 2005, the Board of Directors approved the sale of 22.97 percent stake held by RAO "UES of Russia" in each plant and the sale of the stake (50% + 1 share) held by OAO "Kuzbassenergo" in OAO "Zapadno-Sibirskaya CHPP" and OAO "Yuzhno-Kuzbasskaya TPP". The decision was taken on the requirement of the antimonopoly agency in order to avoid a monopoly position of OAO "TGC-12", which will unite the generation assets of OAO "Kuzbassenergo" and OAO "Altayenergo" on the wholesale electricity market.

*** The shareholders in OAO "Zapadno-Sibirskaya CHPP" and OAO "Yuzhno-Kuzbasskaya TPP" who previously owned shares in OAO "Kuzbassenergyo" before its reorganization, and who voted FOR or abstained from voting on the resolution to reorganize Kuzbassenergo at the meeting held on 30 December 2005, and the shareholders who acquired shares in Kuzbassenergo between 30 December 2005 and 1 July 2006 and were shareholders of record of OAO "Kuzbassenergo as at the reorganization date, 1 July 2006, are guaranteed the right to sell their shares in OAO "Zapadno-Sibirskaya CHPP" and/or OAO "Yuzhno-Kuzbasskaya TPP" to the winners of the respective public auctions at a price per share determined in such auctions.