OREANDA-NEWS. December 14, 2007. RAO “UES of Russia” Board of Directors approved additional issue of IDGC of the Center's 42 118 200 000 ordinary shares, as well as DGC shares swap ratio to additional IDGC of the Center shares,the press service of JSC “Belgorodenergo” reported. (“Belgorodenergo”is in IDGC of the Center service area.)

In accordance with the Board of Directors decision to one IDGC of the Center ordinary share is converted:
• 78000 /738687280 JSC “Belgorodenergo” ordinary share of 3800 rubles nominal value;
• 78000 /676489811 JSC “Belgorodenergo” A type preferred share of 3800 nominal value;
• 78000 /18572663 JSC “Bryanskenergo” ordinary share of 10 rubles nominal value;
• 78000 /17008845 JSC “Bryanskenergo” A type preferred share of 10 rubles nominal value;
• 78000 /7453771 JSC “Voronezhenergo” ordinary share of 10 rubles nominal value;
• 78000 /6826164 JSC “Voronezhenergo” A type preferred share of 10 rubles nominal value;
• 78000 /327431 JSC “Kostromaenergo” ordinary shares of 0,25 rubles nominal value;
• 78000 /299862 JSC “Kostromaenergo” A type preferred share of 0,25 rubles nominal value;
• 78000 /212429 JSC “Kurskenergo” ordinary shares of 1 ruble nominal value;
• 78000 /194542 JSC “Kurskenergo” A type preferred share of 1 ruble nominal value;
• 78000 /1798460 JSC “Lipetskenergo” ordinary shares of 1 ruble nominal value;
• 78000 /542455 JSC “Orelenergo” ordinary shares of 3 rubles 50 kopeek nominal value;
• 78000 /496780 JSC “Orelenergo” A type preferred share of 3,5 rubles nominal value;
• 78000 /918754 JSC “Smolenskenergo” ordinary shares of 1 ruble nominal value.
• 78000/841395 JSC “Smolenskenergo” A type preferred share of 1 ruble nominal value;
• 78000/73076 JSC “Tambovenergo” ordinary shares of 1 ruble nominal value
• 78000/66923 JSC “Tambovenergo” A type preferred share of 1 ruble nominal value;
• 78000/371625 JSC “Tvernergo” ordinary shares of 1 ruble nominal value.
• 78000/340334 JSC “Tverenergo” A type preferred share of 1 ruble nominal value;
• 78000/13948314 JSC “Yarenergo” ordinary shares of 50 rubles nominal value;
• 78000/12773866 JSC “Yarenergo” A type preferred share of 50 rubles nominal value.

The Board of Directors also accepted efficient to place IDGC additional shares in the form of closed subscription, in case if Shareholders Meeting of separate DGC does not decide to takeover to IDGC. Paying up of shares of IDGC additional issue will be held by RAO “UES of Russia” owned shares of DGC (IDGC service area), which did not approve restructuring.

Thereby, RAO “UES of Russia” Board of Directors approved the issuing parameters of IDGC additional shares, which is allowed in case the General Shareholders Meeting of any DGC does not approve the restructuring in the form of takeover to the Company. In this case, the amount of additional issue of IDGC of the Center will amount to 21 106 473 495 ordinary shares.

The parameters and amount of IDGC additional issues, as well as, swap ratio and volume efficiency (in case of additional issue) were calculated in terms of united principles, based on estimation of market values of company shares, which participate in the restructuring and was accomplished by estimating company consortium composed of “Ernst and Young – cost consulting” Ltd, “NPI Consult” Ltd, “International estimation Center” Ltd. RAO “UES of Russia” Board of Directors approved termination of membership of RAO “UES of Russia” in DGC of IDGC of the Center, Volga, Ural, Northern Caucuses and South service area, as well as, the change of interest in the mentioned IDGCs in case of DGC takeover or establishment of holding companies as part of IDGC.The Board of Directors assigned the RAO “UES of Russia” representatives in management bodies of IDGC and DGC to vote “For” decisions making of all necessary decisions, aimed to accomplish IDGC establishment.

It is planned, that establishment of IDGC of the Center, IDGC of Volga, IDGC of Ural, IDGC of the Northern Caucasus and IDGC of the South will be accomplished in the second quarter of 2008.