Moscow, 27 April 2004. At its regular meeting held today, the Audit Committee of the Board of Directors of RAO "UES of Russia" discussed the "Other Expenses" item, as shown in the financial statements of RAO "UES of Russia" ("Company"). The Committee members noted the explanations provided by the management that under the Company's accounting policies the maximum amount of "Other Expenses" item may be up to 10% of the total expenses, and recommended that the Management Board of RAO "UES of Russia" reduce this amount to 5%. Besides, in addition to the itemized list of expenses currently published by the Company, the Committee recommended that expenses relating to insurance, charity, and fines and penalties payable, be shown as separate items of the Company's list of expenses.

The Committee also suggested that the IAS/IFRS Accounting Policy currently being developed by the Management Board should detail the rules for including costs in the "Other Expenses" item, and the principle level of detail necessary for showing expenses.

Besides, the Committee approved the measures aimed at ensuring information disclosure about insider trading in securities. In particular, the Committee members resolved to publish a quarterly consolidated report on the overall volume of securities trades declared by insiders, and submit a detailed report and analysis of insider trades to the Management Board on a quarterly basis and to the Board of Directors at least once a year. Under the Regulation on Information Policy adopted earlier this year, the Company's employees and other persons defined as insiders of RAO "UES of Russia" are obliged to notify the Audit Committee of the RAO UES Board of any trades made by them in the Company's securities.

A decision was also taken to inform the investment community and shareholders of RAO "UES of Russia" on the planned delay in the publication of the IAS/IFRS audited interim financials of RAO "UES of Russia" for the first quarter of 2004. Under the laws in force of the Russian Federation, RAO "UES of Russia" will select the Auditors for 2004 only at the AGM of shareholders, which is to take place in late June 2004. The Q1 2004 audited interim financial statements of RAO "UES of Russia" are scheduled for publication in July 2004.