The auction will be held on 6 July by the Accredited Agent, OOO "Metropol Investment and Finance Company", in accordance with the laws of the Russian Federation and the resolution of the Board of Directors of RAO "UES of Russia" of 21 April 2006.**

The reserve price of the shareholding is RUB182 million with a price increment of RUB9 million.

The auction participant that offers the highest price will be named the winner. Subsidiaries and dependent companies of RAO "UES of Russia", federal and municipal organizations may not take part in the auction.

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* OAO "Yaroslavl Retail Company" was spun off from OAO "Yarenergo" and was registered on 11 January 2005. The Company is engaged in electricity purchase and sale on the wholesale and retail markets. The Company supplies electricity to about 90% consumers in the Yaroslavl Region, which has an area of 36,400 sq. km. The region's population as at 1 January 2005 was 1,338,700. The majority of electricity consumers are industrial enterprises which is explained by the large number of medium and large energy-intensive industrial enterprises in the region.

Among the major industrial enterprises are OAO "Yaroslavl Tyre Plant", OAO "Yaroslavl Diesel Equipment Plant", OAO "Yaroslavl Diesel Equipment Plant", OAO "Lakokraska", OAO "Tutaev Motor Plant", OAO "Avtodizel", the Northern Railway (branch of OAO "Russian Railways") and others.

** On 21 April 2006, the Board of Directors of RAO "UES of Russia" approved the sale of the Company's 47.36% stake in OAO "Yaroslavl Retail Company". The shares will be sold through a public auction with open bidding organized by an accredited agent.

Previously, pursuant the Board resolution of 30 September 2005 on the "pilot" projects for the disposal of shares in energy retail companies, the Management Board of RAO "UES of Russia" had included OAO "Yaroslavl Retail Company" in the list of "pilot" companies whose shares are to be sold in a public auction.