OREANDA-NEWS. On July 25, 2007 the Board of Directors of RAO "UES of Russia" approved the disposal of the Company's shares in OAO "Neftyanoy Dom" and instructed the Management Board to submit proposals on such disposal to the Board of Directors during Q4 2007, reported the press-centre of RAO "UES of Russia".

This resolution is part the process to sell the office building owned by OAO "Tsentr Energetiki"*. Previously, at its meetings of 9 February 2007 and 25 May 2007, the Board of Directors approved the consolidation of its 100% stake in OAO "Tsentr Energetiki" and reorganize it by spinning off OAO "Neftyanoy Dom". In the course of the reorganization, the office building slated for sale will be transferred to OAO "Neftyanoy Dom".

The consolidation of shares of OAO "Tsentr Energetiki" will significantly expand the pool of potential buyers, including foreign investors, and the separation of the property intended for sale into a separate legal entity will maximize the profit from its sale.

The experience in selling large real estate properties also shows that in order for the transaction to generate maximum proceeds it is necessary to position the property effectively on the market prior to its sale, and to fully inform the potential buyers about the property offered for sale.

The Board's decision to sell the property will make it possible for RAO "UES of Russia" to start informing the potential buyers about the sale of OAO "Neftyanoy Dom" as soon as the company is registered. RAO "UES of Russia" will then sign an Agency Contact to retain a specialized firm which will handle the property sale.

The Board of Directors of RAO "UES of Russia" instructed the Management Board to have the contract concluded with an asset sale agent by 15 August 2007.

OAO "Tsentr Energetiki" is a subsidiary of OAO RAO "UES of Russia". Its key asset is a Class B office building, located at 101, Prospekt Vernadskogo, bldg. 3, Moscow, together with the adjacent land. The company's authorized capital is comprised of 5,710 ordinary shares of RUB1,000 par value each.

At its meeting of 24 June 2005, the Board of Directors classified the stake held by RAO "UES of Russia" in OAO "Tsentr Energetiki" as a non-core asset intended for sale. On 17 January 2007, the RAO UES Assets Disposal Commission decided that the asset was to be sold in Q4 2007 – Q1 2008.