OREANDA-NEWS. December 12, 2012. Federal Grid Company of Unified Energy System (“Federal Grid Company” or the “Company”, LSE and Moscow Exchange ticker: FEES), the operator and manager of Russia’s Unified National Electric Grid, and its subsidiaries, together referred to as “FGC UES Group” (the “Group”), announces its unaudited consolidated financial results for the six months ended 30 June 2012 prepared in accordance with International Financial Reporting Standards (IFRS).

Key Highlights

Financial:

Revenue of RUB 66,909 million

Adjusted EBITDA* of RUB 37,761 million

Operating profit of RUB 15,039 million

Profit for the period of RUB 3,914 million

Adjusted Profit** for the period of RUB 13,997 million

* Adjusted EBITDA is calculated as conventional EBITDA (profit for the period before income tax expense, finance income and costs, depreciation and amortisation) adjusted to exclude an impairment of available-for-sale investments, a reversal of impairment of investments in associates, and a non-specific impairment of property, plant and equipment, and to include finance income

** Adjusted profit for the period is calculated as profit for the period adjusted to exclude an impairment of available-for-sale investments, a reversal of impairment of investments in associates, a non-specific impairment of property, plant and equipment, and related deferred income tax effects

Operational:

Electricity transmission as at 30 June 2012 amounted to 248.656 billion kWh (+4.8% compared to 1H 2011)

Total number of substations*** as at 30 June 2012 amounted to 858

Total transformer capacity - 323 MVA

*** Including leased assets and ORU and cells on substations owned by third parties

Key developments in 1H 2012

On 27 April 2012, the Board of Directors of Federal Grid Company approved three long-term debt instruments in order to diversify the Company’s debt financing sources:

Russian bonds totaling up to RUB 125 billion

Stock-exchange authorised rouble bonds totaling up to RUB 100 billion

Eurobonds totaling up to RUB 100 billion

On 11 May 2012, the Ministry of Energy of the Russian Federation approved the RUB 505 billion 2012-2014 investment program for Federal Grid Company

On 21 May 2012, the Federal Tariff Service approved electricity transmission tariffs for 2012-2014. According to the decision, starting in 2H 2012, the tariff will be increased by 11% with subsequent 9% tariff increases slated for mid-2013 and mid-2014

Andrey Kazachenkov, First Deputy Chairman of the Management Boardof Federal Grid Company, commented:

“Federal Grid Company’s principal financial results for 1H 2012 are adjusted EBITDA of RUB 37,761 million and adjusted Profit for the period of RUB 13,997 million.

The Company continues pursuing its long-term development programme to improve operational and investment efficiency.

Federal Grid Company is thus continuing to pursue balanced financial policies to support the long-term development of Russia’s backbone electricity grid”.