Moscow, 5 December 2006. OAO "Southern Generation Company TGC-8" ("TGC-8:) announced on 4 December the launch of open competitive negotiations to select an investment bank to provide financial consultations.

The investment bank will be required to develop the strategy and the most efficient structure for raising funds through offerings of additional shares in TGC-8. It will also ensure information availability and transparency of the offering process and taking into account shareholders' and investors' interests.

The investment bank is to ensure that TGC-8 raises funds needed for its investment programme on the most favourable terms, and consult the Company on matters relating to carrying out the share offering simultaneously with the spun-off of TGC-8 from RAO "UES of Russia" in the process of RAO UES restructuring.

Bids will be accepted until 20 December 2006.

According to TGC-8 Deputy Director General Dmitry Solodyankin, the RUB24 bn offering, which is scheduled for 2008, will be the key source of finance for the Company's RUB34.9 billion investment and development programme for 2006-2010. The Information Memorandum, which sets out the TGC-8 development plans for 2006-2008, is available on the Company's website.

Dmitry Solodyankin said that the economic benefit for the company will be better access to the electricity markets, business expansion, equipment modernization and reduction of operational costs. "In the regions of Russia, the economic benefits will primarily manifest themselves in further industrial development and increased tax revenues".

TGC-8 shares are traded on the Classical Market and Exchange Market of RTS Stock Exchange, and on the Moscow Interbank Currency Exchange (MICEX). Currently, the company is preparing documents needed to transfer its shares from the List of non-listed securities to the "B" Quotation List. The FSFM has cancelled the special registration numbers assigned to the company's additional share issues, which means that now all shares of the company have the same identifier. The efficient management and transparency of the company's operations have already resulted in increased interest in its shares, sending the MICEX and RTS prices of TGC-8 shares upwards. Their average weighted price on the RTS and MICEX stock exchanges rose to 2.49 kopecks on 30 November from 1.8 kopecks on 1 November. Thus, the company's shares have grown 38.3 percent. with the trading volume increasing substantially.