Moscow. 1 November 2004. RAO "UES of Russia" has published the interim consolidated financial statements of the Group of RAO "UES of Russia" for H1 2004 prepared according to the International Financial Reporting Standards (IFRS).

Consolidated Balance Sheet as of 30 June 2004:

As of 30 June 2004, the total assets of the Group of RAO "UES of Russia" grew RUB25.4 billion to RUB1,113 billion from year-end 2003. The Group's fixed assets amounted to RUB904.5 billion, whereas the value of its current assets totalled RUB208.4 billion.

As at 30 June 2004, the accounts receivable amounted to RUB121.6 billion, up RUB16.3 compared to the beginning of the year. This was due to the seasonal increase in the advances paid to suppliers and repairs and maintenance contractors. In the first half of 2004, the Group's accounts payable grew by RUB4.9 billion to RUB94.7 billion. The increase in the accounts payable was due to the declaration of the 2003 dividends by the Group's entities.

Consolidated Income Statement for the First 6 Months of 2004

The operating income of the Group of RAO "UES of Russia" in the first half of 2004 amounted to RUB342.7 billion, an increase of RUB41.9 billion. The Group's operating expenses in H1 2003 grew RUB36.9 billion to RUB300.9 billion.

In the reporting period, the operating profit increased by RUB4.98 billion to RUB41.9 billion. The earnings before taxes and minority interests amounted to RUB35.99 billion, up RUB3.5 billion.

The earnings before minority interests grew in H1 2004 by RUB4.7 billion to RUB22.2 billion. The net profit in the first six months of the year totalled RUB15.4 billion, down RUB1.5 billion on H1 2003. Such a decrease in net profit was due to the nearly tenfold increase in the minority interests expense**.

Consolidated Cash Flow Statement for the First Six Months of 2004:

The cash flows from operating activities in the first half of 2004 totalled RUB36.09 billion, an increase of RUB4.4 billion compared to the same period of 2003. In H1,2004, the Group allocated RUB26.7 billion in funds for investments, up RUB4.7 billion year-on-year.

The financial statements have been audited by ZAO "KPMG", approved as the Group's external auditors by the AGM of RAO "UES of Russia" shareholders.

* This includes RAO "UES of Russia" as the Parent Company, the regional energos, power plants, and other subsidiaries and dependent companies. The financial statements of the Group of RAO "UES of Russia" in accordance with IFRS have been prepared since 1997.

** The income of minority shareholders is deducted from the after-tax earnings from operations.