PJSC "Territorial Generating Company # 2" and Deutsche Bank Trust Company Americas signed the Depository Agreement for organization of a sponsored GDR issue program. In accordance with terms and conditions of this agreement, each GDR may be issued in proportion to 10 000 TGC-2 ordinary shares with face value of 1 kopec per share.

Deutsche Bank was chosen as a Depository Bank following the results of the open tender, in which such companies as Citibank, N.A., JPMorgan Chase Bank N.A., The Bank of New York took part.

In determining the winner, the following criteria were taken into consideration: ability to take into account restructuring procedures of RAO UES of Russia (including the possibility of free-of-charge issue and allocation of TGC-2 GDRs to RAO UES of Russia GDR holders), experience in performing a Depositary Bank functions for the energy sector companies, ability of a Depositary Bank to cover expenses connected with starting and maintaining the program as well as readiness to render additional services.

The main goals of launching the GDR issue program include increasing liquidity of those TGC-2 shares that have already been placed by allowing their circulation aborad in the form of GDRs and securing the rights and legal interests for holders of GDR, issued in exchange for RAO UES of Russia shares in the process of the Holding restructuring.
The launch of the GDR issue program is planned for November 2007, after receiving the FSFM of Russia promission for circulation of TGC-2 shares abroad.

Company Profile
PJSC "Territorial Generating Company # 2" (PJSC "TGC-2") was established in February 2005. The Company"s Director General is Andrey Vagner. TGC-2comprises generating capacity of 6 regions - Arkhangelsk, Vologda, Kostroma, Novgorod, Tver and Yaroslavl.
Since July 1st 2006 TGC-2 functions as a unified Company. TGC-2 operates 16 heat power stations, 8 boiler-houses, 4 enterprises of thermal networks. The aggregate electric capacity of TGC-2 enterprises is 2 582,5 MW, the installed thermal capacity constitutes 12 471 Gcal/h.
PJSC "TGC-2" owners equity amounts to 11 124 968 918 rub 18 kopecs and is spread over 1 095 996 358 137 ordinary shares and 16 500 533 681 preferred shares with the face value of 1 kopec. The main shareholder of the company is RAO "UES of Russia", which owns 49,36% of shares.