OREANDA-NEWS  On 03 October was announced, that JSC “OGK-5” published the interim consolidated financial statements for six months, ended 30 June 2008, prepared in accordance with International Financial Reporting Standards (IFRS).

Consolidated Income Statement as of 30 June 2008

OPERATING REVENUES totalled 20 216 million RUR, 4 063 million RR higher than the value posted in the previous year (+25%). The increase is mainly driven by the growth in the net output by 23% (from 17.039 to 21005 GWh), due to the overall improvement of the power plants availability factor and load factor as well as by the increase in the average selling price for energy and capacity and by the better sales mix (26,3% of sales on the Day Ahead Market on total sales).

EBITDA stood at 2.386 million RR, 23 Million RUR lower than the same value posted in the previous year. Not taking into account the negative impact of non-recurring costs for a total amount of 489 Million RUR mostly related to restructuring costs, RECURRING EBITDA totalled 2.875 million (19,3% higher than the value posted in the same period of 2007).

OPERATING PROFIT amounted to 1 172 million RR, 198 Million RUR lower than the figure posted in 2007. The decrease is mainly attributable to the higher amount of fixed assets depreciation (+178 million RUR) due to the reappraisal of the fair value of assets at the end of 2007.

NET FINANCIAL EXPENSES totalled -154 million RUR, against a positive result of 204 million RUR for the same period of 2007. The change is mainly driven by the increase of average net debt triggered by the big amount of capital expenditures performed by the company during first half of the year (7 054 million RUR) and related to the construction of the 2 new CCGT units in the Sredeuralskaya and Nevinnomiskaya industrial sites and to the availability improvement program and modernization of the existing plants.

NET PROFIT for first half 2008 totalled 767 million RR, 433 million lower than the value posted in the previous year. Not taking into account the negative impact from the above-mentioned non-recurring items, RECURRING NET PROFIT totalled 1 139 millon RUR (-5% vs first half 2007).

Consolidated Balance Sheet as of 30 June 2008

TOTAL ASSETS at the end of June 2008 totalled 79 491 million RR, 351 Million RUR higher than the figure posted in the previous year.

NON CURRENT ASSETS totalled 71 208 million, 6 800 million RUR higher than the value achieved in 2007 , due to the capital expenditure program carried out during the first 6 months of 2008.

CURRENT ASSETS totalled 8 283 million RR, 6 448 million RR less than the figure posted at the end of the year 2007 . The decrease is mainly attributable to the use of funds raised trough the IPO to cover the financial needs related to the investment program of the Company (-5 404 million RR vs year end 2007) and by the reduction of trade receivable and advances to suppliers mainly related to fuel purchases (-1 198 million RR).

TOTAL EQUITY at the end of June 2008 stood at 62 189 million RR, 903 million RR higher than the correspondent value at the year end 2007. The change is mainly due to the interim net profit.

TOTAL LIABILITIES stood at 17 302 million RR showing a decrease of 551 million RR vs 2007. The change is mainly driven by the reduction of trade payable mainly linked to fuel supplies (-959 Million RUR).

Consolidated Cash Flow Statement as of 30 June 2008

CASH FLOW FROM OPERATION for six months of 2008 totalled 2 399 million RR, 403 million RUR higher than in the same period of 2007 (+20%).

CASH FLOW FROM INVESTING ACTIVITIES totalled – 2 441 million RR, 2 297 million higher than 2007, due to a larger commitment of the Company in the execution of the investment program.

NET CASH OUTFLOW FROM FINANCING ACTIVITIES totalled -134 million RR, 591 million RR higher than 2007 level.

As a result, at the end of the first half of the year OGK-5 has registered a NET DECREASE in CASH of 176 million RUR.

Limited review of IFRS Consolidated Financial Statements for six months of year 2008 was performed by KPMG, approved as the auditor of JSC “OGK-5” for year 2008 by the Annual General Shareholders’ Meeting of JSC “OGK-5”.