OREANDA-NEWS. The Board of Directors of RAO "UES of Russia" noted the Management Board's proposals regarding the Company's shareholding in OAO "Power Machines" at the final phase of RAO UES reorganization.

The Board of Directors stated it is necessary to maintain the RAO UES stake in OAO "Power Machines" and acquire additional shares to be issued by the power engineering company. This will enable RAO "UES of Russia" to maintain a blocking stake in Power Machines.

The Management Board of RAO "UES of Russia" was instructed to produce and submit for Board approval, before end-June 2007, a Programme for the preparation and issuance of additional shares of OAO "Power Machines".

The Board of Directors of RAO "UES of Russia" also noted that it would be advisable to sell the Company's stake in Power Machines to a Russian investor. The shares are expected to be sold as a single lot in H1 2008.

In this connection, the Board of Directors of RAO "UES of Russia" instructed the Management Board to take steps needed for RAO "UES of Russia" to purchase the Power Machines shares held by OAO "TGC-1" prior the additional share issue of OAO "Power Machines".