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Press-release

RTS Launches Futures Contract "Shares of Electricity Industry Companies"

Moscow, 19 May 2008. With effect from today, FORTS, the RTS futures and options trading floor, introduces a futures contract "Shares of Electricity Industry Companies" with settlement on 15 December 2008. This contract has been introduced instead of the futures for ordinary shares in RAO "UES of Russia".*

The specifications for the futures, and the option for such futures was registered by the FSFM of Russia on 13 May 2008. At the time of admission of the futures contract to trading, the contract size was 1,000 ordinary shares in RAO "UES of Russia" (underlying asset).

On 1 July 2008, when the reorganization of RAO "UES of Russia" is completed, the stock exchange will take a decision on changing the underlying asset and contract size in accordance with the distribution of shares to shareholders who voted "for" the reorganization of RAO "UES of Russia" at the EGM on 26 October 2007.

That is why, beginning in July, the underlying asset for the futures contract will be a basket of 23 shares in the companies spun off from RAO "UES of Russia", namely: WGC-1, WGC-2, WGC-3, WGC-4, WGC-6, TGC-1, TGC-2, TGC-4, TGC-6, SGC TGC-8, TGC-9, TGC-10, TGC-11, TGC-14, Volzhskaya TGC, Eniseyskaya TGC, Mosenergo, Kuzbassenergo, FGC, HydroWGC, INTER RAO UES Holding, IDC Holding, and RAO Energy Systems of the East. Accordingly, on the settlement date, the contract seller will deliver a basket of shares in 23 spin-off energy companies against payment from the contract purchaser.

The launch of the futures contract "Shares in Energy Industry Companies" is designed to support liquidity of the energy companies' shares after RAO UES shares stop trading on the stock exchange on 6 June. These mechanisms to support the liquidity of shares during the transitional period were developed on the instruction of the Board of Directors of RAO "UES of Russia".

According to the RTS management, this contract will give investors a unique possibility to hedge against the price risks inherent in the RAO UES stock portfolio from the time trading in the Company's shares is suspended until trading is started in shares of all spin-off companies is commenced. This is of extreme importance, as investors will be able to keep RAO UES shares in their portfolio while avoiding the risks related to reduced liquidity of these securities. Investors will also be able to efficiently manage their electric sector portfolios in any market conditions.

By way of reminder, 6 June 2008 will be the last day on which RAO UES shares are traded on stock exchanges. This date will be the record date for determining the RAO UES shareholders that will take stakes in the energy companies spun off from RAO "UES of Russia".

In this connection, shareholders and investors should be aware that in the event they purchase shares of RAO "UES of Russia" after 6 June on the OTC market and continue to hold them until the reorganization completion date (1 July 2008), they will be entitled to receive only shares in Federal Grid Company and not the entire set of shares in the companies to be spun off from RAO "UES of Russia".

In this case, such holders will be entitled to receive about 2.3 ordinary shares in FGC for each ordinary share in RAO "UES of Russia" held by them, and about 2.1 preferred shares in FGC for each RAO UES preferred share.

That is why we recommend that you close all transactions in RAO UES shares by 6 June (inclusive), including those involving transfer of securities ownership, and after that date refrain from any deals in RAO UES shares.

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Contact Information:

Stas Degtyarev
Press Office Expert
+7 (495) 710-6239

Shareholder Relations
+7 (495) 620-1609


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