OREANDA-NEWS. The Board of Directors of RAO "UES of Russia" has approved the basic structure for the second (final) phase of the Company's reorganization.

The model for the Company's final reorganization the Board approved today provides that, in 2007-2008, RAO "UES of Russia" will complete the restructuring of its assets, spin off all companies which will comprise the ultimate sector structure—OAO "UES FGC", OAO "UES SO-CDA", WGCs, TGCs, etc., following which the Parent Company, OAO RAO "UES of Russia", will cease its activity.

As a result, RAO UES shareholders will receive shares in the spin off companies pro rata to their holdings of the Parent Company shares.

It is expected that the final reorganization of RAO "UES of Russia" will be implemented by spinning off "interim" companies which will simultaneously merge with and into the respective companies of the ultimate sector structure.