OREANDA-NEWS. June 17, 2011. JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that ISS Proxy Advisory Services, the leading independent provider of proxy advisory recommendations to institutional investors, has issued the report, in which it states its supports of the items on the agenda of the Annual General Meeting of shareholders of RusHydro to be held on June 30, 2011 and recommends shareholders vote in favor of all proposed resolutions.

In particular, on items 7 and 9 of the agenda - authorization to increase the share capital and issuance of shares - analysts from ISS noted that the proposed share capital increase and subsequent share placement would facilitate the company's asset consolidation and would strengthen the company's positions in Siberia and Russia's Far East region. Existing shareholders would have the right to participate in the share placement and would be granted preemptive rights. "This share issuance and the following asset swaps will most likely benefit the company in the long-run through access to the Chinese market and the creation of additional venues for future strategic projects", - concludes ISS in its report.

For item 11, which includes the approval of a number of related-party transactions, ISS commented that the share swap deals between RusHydro and Inter RAO UES, as well as transactions between RusHydro and VTB Bank do not appear to be controversial, and their pricing parameters do not infringe minority shareholders' rights.

Full details of the resolutions, including Board of Directors' recommendations, are available on the corporate website of RusHydro. Only shareholders registered as at May 23, 2011 can participate in the AGM.

Shareholders are reminded that the deadline for receipt of voting ballots (for local shares) is June 27, 2011 (to be received by Company's registrar - JSC R.O.S.T), for proxy votes of depositary receipts holders - June 22, 2011 (to be received by Bank of New York Mellon).