Moscow. 25 November 2004. At its regular meeting held today, the Audit Committee of the Board of Directors of RAO "UES of Russia" heard and noted the information on the project to create a Working Group on the development and implementation of an internal audit and control system for fuel supply and utilization at RAO "UES of Russia" ("Calorie Project").

The Calorie Project seeks to develop a uniform corporate strategy and methodology for fuel supply and utilization at the subsidiaries of RAO "UES of Russia" (specifically, selection of suppliers and terms of supply, determination of the limit prices, organization of fuel payments, fuel inventories management), organization and implementation of an internal system of control and audit of business processes in that area. The Audit Committee recommended that the Management Board of RAO "UES of Russia" form a Working Group to implement the Calorie Project, appoint Group members and approve a Regulation on the Working Group.

Also, the Audit Committee heard a report on the Counter Project describing the status of preparation of the terms of reference for the creation of an automated system for internal control of the amount and structure of capital expenditures relating to investments in the construction of new power plants. The goals and procedure for the implementation of this Project were approved at the Audit Committee meeting held on 10 September 2004. The Committee also approved the requests to the Company's management to provide detailed descriptions of the internal control systems for investment process now used at OAO RAO "UES of Russia", OAO "UES FGC", and ZAO "Inter RAO UES".

The Audit Committee approved the Regulation on the Procedure for Information Disclosure on Insider Dealings in Securities of RAO "UES of Russia" and its subsidiaries and dependent companies, and decided to submit the Regulation for consideration by the Board of Directors. The document gives definitions of "insider" and "insider information" and describes the procedure for insiders to notify the Audit Committee of their transactions in securities of the Company and its subsidiaries.

The Committee heard a preliminary report on the work of the Internal Audit Department of RAO "UES of Russia".