OREANDA-NEWS. On April 24, 2008 RAO "UES of Russia" held public auctions to sell its shares in the energy retail companies (OAO "Samaraenergo", and OAO "Ulyanovskenergo"). Bids for the auction were accepted from 14 April to 23 April 2008, reported the press-centre of RAO "UES of Russia".

The public auctions were arranged by OAO "Urals Energy Management Company", Accredited Agent of RAO "UES of Russia", in accordance with the applicable Russian laws and the resolutions taken by the RAO UES Board of Directors on 31 August 2007.

The start prices for the shareholdings in the ERCs equal to the market value determined based on the report prepared by a consortium of independent appraisers were as follows:

55.4% stake in OAO "Samaraenergo": RUB2,035 billion;

49% stake in OAO "Ulyanovskenergo": RUB120 million.

Auction Results:
The auction to sell the 55,4 percent stake in OAO "Samaraenergo" was won by ZAO "Troika Dialog Financial Broker", which offered the highest price for the shares, RUB2,035 billion.

The 49 percent stake in OAO "Ulyanovskenergo" was sold to OOO "MSK Securities Investment Company" for RUB120 million.

Upon completion of the auctions, RAO "UES of Russia" and the auction winners signed auction protocols and the Share Purchase Agreements in respect of the shares in the energy retail companies.

The auction to sell the 48,4% stake in OAO "Saratovenergo" failed to attract any bidders.

The next round of auctions to sell shares in ERCs (OAO "Penza Energy Retail Company" and OAO "Tyumen Energy Retail Company") will be held on 22 May 2008.

In statement on the results of today's auctions, Member of the Management Board and Head of RAO UES Project Center Vladimir Avetisyan said: "Today's auctions were different from the auctions held previously in terms of bidding procedure, because the shares of OAO "Samaraenergo" , OAO "Ulyanovskenergo", and "OAO Saratovenergo" were contributed to the authorized capital of RAO "UES of Russia" at the time of its establishment and their sale was to be approved by the Government of the Russian Federation. We received such approval on condition that the auction to sell the shares in these companies will use an open bidding procedure.

Taking into account the Government's order relating to the sale of Saratovenergo's shares, RAO UES will not sell the Saratovenergo shares through the ISTRA Information and Trading System as it did with other ERC shares which were not sold, but will sell them at a new public auction to be held at a later date.