OREANDA-NEWS. June 25, 2007. The Board of Directors of RAO "UES of Russia" heard a report on the preparations for the AGM of the Company and noted that the Company is well prepared for the event.

The AGM of RAO "UES of Russia" will be held on 26 June 2007 in the Zelenograd Palace of Culture located in Zelenograd, an administrative district of Moscow. The meeting starts at 11 a.m. Record date: The list of shareholders entitled under the laws of the Russian Federation to take part in the AGM was made as of 11 May 2005. The Annual Report of the Company may be viewed on the website of OAO RAO "UES of Russia".

On the request of the shareholders owning the Special Purpose Holding Companies (SPHCs), the Board of Directors decided to postpone, until its next scheduled physical meeting, the consideration of the matters relating to the extraordinary general meeting on the final phase of the reorganization of RAO "UES of Russia", which is due to the need to hold additional negotiations regarding asset swaps among SPHCs.

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The Board of Directors of RAO "UES of Russia", acting in the capacity of the AGM of OAO "HydroWGC"*, approved the Annual Report, the annual financial statements, the profit and loss account of the Company for 2006, and the allocation of profit for 2006 (except for RUB1.14 billion of profit previously distributed as [interim] dividends on ordinary shares of HydroWGC for Q1, H1, and 9M 2006).

In 2006, OAO "HydroWGC" had retained earnings of RUB357,74 million. It was decided to allocate RUB75,21 million to the legal reserve and RUB282,53 million to the accumulation fund. Taking into account the dividends paid [by HydroWGC] in respect of Q1, H1, and 9M 2006, the Board of Directors of RAO "UES of Russia" decided to not to pay the dividends on shares of OAO "HydroWGC" for 2006.

The Board of Directors of RAO "UES of Russia" also decided to increase the number of members on the Board of Directors of OAO "HydroWGC" from 11 to 13 persons. This is due to the forthcoming reorganization of OAO "HydroWGC" designed to achieve its intended structure and, as a consequence, the need for the state and minority shareholders of RAO "UES of Russia" and the SDCs of OAO "HydroWGC" on the Board of Directors of OAO "HydroWGC".

The following persons were elected to the Board of Directors of OAO "HydroWGC": Victor Khristenko, Minister of Industry and Energy of the Russian Federation; Anatoly Chubais, Chairman of the Management Board of RAO "UES of Russia"; Denis Askinadze, Director of the Department for State Regulation of Tariffs and Infrastructure Reforms of the Ministry of Economic Development and Trade of the Russian Federation; Boris Ayuyev, Chairman of the Management Board, OAO "UES SO-CDA"; Yuri Medvedev, Deputy Head of the Federal Agency for Federal Property Management; Dmitry Ponomaryov, Chairman of the Management Board, NP "ATS"; Andrey Rappoport, Chairman of the Management Board, OAO "UES FGC"; Seppo Remes, Senior Advisor to Chairman, Finnish Institute under the Parliament of Finland (Sitra); Vyacheslav Sinyugin, Chairman of the Management Board, OAO "HydroWGC"; Yuri Udaltsov, Member of the Management Board, RAO "UES of Russia"; Yakov Urinson, Deputy Chairman of the Management Board, RAO "UES of Russia"; Rustam Khamitov, Head of the Federal Water Resources Agency; and David Herne, Managing Director, Halcyon Advisors.

The Board approved the appointment of ZAO "PricewaterhouseCoopers Audit" as auditors of OAO "HydroWGC" for 2007.

The Board of Directors resolved to pay interim dividends of RUB1,119 million (RUB0,00793872 per ordinary share of HydroWGC) for Q1 2007.