Moscow, 3 November 2005. OAO "Karachaevo-Cherkessia Hydrogeneration Company" has completed its state registration with Interdistrict Inspectorate No. 3 of the Federal Tax Service for the Republic of Karachay-Cherkessia.

OAO "Karachaevo-Cherkessia Hydrogeneration Company" was founded by OAO "Karachaevo-Cherkesskenergo" (99.99% shares) and OAO "Zelenchukskie HPPs" (1 share) as part of the plan to reorganize and restructure OAO "Ingushenergo", OAO "Kabbalkenergo", OAO "Karachaevo-Cherkesskenergo", OAO "Sevkavkazenergo", managed by OAO "Caucasus Energy Management Company".** The decision to establish the Company was taken by the Board of Directors of RAO "UES of Russia" at its meeting held 25 March 2005.

OAO "Karachaevo-Cherkessia Hydrogeneration Company" will comprise the Sadovaya HPP, Eshkakonskaya HPP, and Uchkulanskaya HPP.

The Board of Directors of the Company includes the following members: Kady Kaitov, Head of Small HPPs Group, OAO "Karachaevo-Cherkesskenergo"; Oleg Dunin, Head of Project Implementation Department of Business Unit No. 2, RAO "UES of Russia"; Dmitry Arkhimenko, Leading Expert of Corporate Governance and Shareholder Relations Department of the Corporate Center, RAO "UES of Russia"; Vladislav Yaroshevich, Advisor of the Institute of Professional Directors Foundation; and Evgeny Dikov, Head of Reform Directorate, OAO "VoGEK Management Company". Ruslan Ebzeyev was elected Director General of OAO "Karachaevo-Cherkessia Hydrogeneration Company".

The authorized capital of the Company is RUB6.582 million, divided into ordinary shares of RUB1 par value.

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