OREANDA-NEWS. Federal Grid Company of Unified Energy System (“Federal Grid Company” or “the Company”) (Moscow Exchange, LSE: FEES), part of the Russian Grids Group of companies and operator of Russia's unified electricity transmission grid system, today announces its consolidated interim IFRS financial results for the six months ended 30 June 2013.

Key 1H 2013 financial and operational highlights:

Financial

Revenues of RUB 75,826 million

Adj. EBITDA* of RUB 40,448 million

Adj. operating profit** of RUB 10,619 million

Adj. profit for the period*** of RUB 7,878 million

Adj. EPS**** of 0.006 RUB

• Adjusted EBITDA is calculated as EBITDA (profit for the period before income tax, finance income and costs, depreciation and amortisation), excluding non-specific impairment of property, plant and equipment, impairment of available-for-sale investments, impairment of promissory notes (1H 2013), reversal of impairment of investments in associates (1H 2012), and including finance income.

** Adjusted operating profit is calculated as operating profit, excluding non-specific impairment of property, plant and equipment.

*** Adjusted profit for the period is calculated as profit for the period, excluding non-specific impairment of property, plant and equipment, impairment of available-for-sale investments, impairment of promissory notes (1H 2013), reversal of impairment of investments in associates (1H 2012), and related deferred income tax effects.

**** Adjusted EPS is calculated as adjusted profit for the period divided by the weighted average number of the Company's shares outstanding during the reporting period.

Operational

Electricity transmission volume: 257 billion kWh

Total transformer capacity: 335 GVA

Transmission grid length in operations: 132 thousands km

Number of substations: 891 units

Key 1H 2013 corporate developments:

On 14 June 2013 the Russian Government's stake in Federal Grid Company, previously held through the Federal Property Management Agency (Rosimuschestvo), was transferred to Russian Grids, OJSC (“Russian Grids”). As a result, Russian Grids now holds a 79.64% stake in Federal Grid Company.

In order to finance its investment programme, Federal Grid Company floated its first RUB 30 billion tranche of infrastructure bonds on the Moscow Exchange in June 2013. The bonds have a 35-year maturity and an inflation-protected coupon rate linked to consumer price index (CPI) inflation for the previous year plus 1%.

Andrey Kazachenkov, First Deputy Chairman of the Management Board, commented on the Company's 1H 2013 IFRS results:

“Federal Grid Company's principal financial results for 1H 2013 are adjusted EBITDA of RUB 40,448 million and adjusted profit for the period of RUB 7,878 million.

“We continue to pursue our long-term development goals of improving efficiency while effectively implementing our large-scale investment programme. Federal Grid Company continues to adhere to balanced financial policies that support the long-term development of Russia's backbone electricity grid.

“In the first half of 2013, for example, we successfully placed our debut RUB 30 billion issue of 35-year infrastructure bonds with a coupon rate tied to CPI inflation. We plan to seek additional ways to secure further long-term financing in order to support the investments required to ensure reliable, efficient electricity transmission across Russia.”