OREANDA-NEWS. October 9, 2007. President of the Russian Federation Vladimir Putin has signed into law the Federal Law On Amending Article 6 of the Federal Law "On Specific Features of Functioning of Electric Power Industry During the Transition Period and on Introduction of Amendments into Certain Legislative Acts of the Russian Federation and on Recognizing Certain Legislative Acts of the Russian Federation to Have Lost Their Force in Connection with Adoption of the Federal Law 'On Electric Power Industry".

The Law was adopted by the State Duma on 12 September 2007 and approved by the Federation Council on 19 September 2007. The law specifies the procedure for adopting resolutions on the reorganization of RAO "UES of Russia" during the final phase of the Russian electricity reform.

Specifically, the Federal Law provides that shares in the companies spun off from RAO "UES of Russia" will be distributed among the RAO UES shareholders who do not take part in the voting on the Company's reorganization on equal term with the distribution of shares among the shareholders who vote for the reorganization.

26 October 2007, RAO UES will hold an EGM to take decisions on the final phase of the Company's reorganization. On 23 August 2007, the Company's Registrar made a list of the shareholders entitled to participate in the EGM.

According to the Government plans, the final phase of the reorganization and pro rata distribution of RAO UES assets is scheduled to be completed on 1 July 2008. RAO UES shares will continue to trade on the stock exchanges until the record date in June 2008. The details of trading in RAO UES shares on the stock exchanges after the record date for the purpose of distribution of assets among the Company's shareholders will be determined in consultation with the major stock exchanges. All shareholders and stock market participants will be informed of the procedure.

To participate in the final distribution of the Company's assets, a shareholder will have to own shares of RAO "UES of Russia" as of the record date (expected in June 2008). An advance notice of the record date will be given to the Company shareholders and stock market participants.

As a result of the asset distribution, which is part of the final phase of the Company's reorganization, the minority shareholders in RAO "UES of Russia" (excluding Gazprom, SUEK and Norilsk Nickel) that voted FOR the reorganization or did not take part in the vote will receive shares in OAO "UES FGC", OAO "HydroWGC", OAO "IDC Holding", RAO Energy Systems of the East", OAO "INTER RAO UES", OAO "WGC-1", OAO "WGC-2", OAO "WGC-3", OAO "WGC-4", OAO "WGC-6", OAO "TGC-1", OAO "TGC-2", OAO "Mosenergo", OAO "TGC-4", OAO "TGC-6", OAO "Volzhskaya TGC", OAO "Southern Generation Company TGC-8", OAO "TGC-9", OAO "TGC-10", OAO "TGC-11", OAO "Kuzbassenergo", OAO "Yeniseyskaya TGC", OAO "TGC-14" in proportion to their stakes in RAO "UES of Russia" (taking into consideration the share held by RAO UES in these companies).

RAO "UES of Russia" and the Company's Registrar, ZAO "Status Registration Company", have set up a hotline for shareholders to ask questions on all matters relating to the final phase of the reorganization and participation in the EGM.