Moscow, 7 December 2004. RAO "UES of Russia" has been named winner of the Company of the Year Award for successful implementation of the sector reform.

The Awards have been given by the Kompaniya Magazine since 1999.The Magazine's editors prepare a list of winners based on the Russian companies' performance during the year. The key factors taken into account in the choice of the winner are the Company's innovativeness, efficient financial performance, and implementation of large investment and marketing projects.

This year, the editors of the Kompaniya Weekly praised the efforts taken by RAO "UES of Russia" to implement the reform in Russia's electricity industry, ensure operation of RAO UES energy companies without technical problems, and deliver reliable and uninterrupted energy supply to consumers.

Restructuring is currently underway in 52 regional energos, which are subsidiaries of RAO "UES of Russia". 5 regional companies have practically completed their reorganization. The companies created in line with the target sector structure have started to operate: Federal Grid Company (OAO "UES FGC"), System Operator (OAO "UES SO-CDA"), Non-profit Partnership "Administrator of the Trading System" (NP "ATS"). RAO "UES of Russia" has taken decisions to establish three wholesale generation companies (WGC-3, WGC-4, and WGC-5), two of which—WGC-3 and WGC-5—have already completed their registration with the state authorities. Also, decisions have been taken to create six territorial generation companies (TGC-1, TGC-8, TGC-9, TGC-10, TGC-13, TGC14), one of which, TGC-14, has registered with the authorities today.

In the course of the sector reform, the free trade segment of the wholesale electricity market ("5-15"), which became one of the world's ten largest power exchanges over the year of operation.