Moscow, 29 March 2005. The Board of Directors of OAO "HydroWGC" held its meeting today. The Board of Directors heard a report On the Approaches to Shaping the Company's Strategy, which identifies the goals of OAO "HydroWGC" and priorities of its Management Board for the next year, examines the strategic development areas of the Company for the transition period (to 2007), in the medium-term (to 2010), and for the period until 2020.

The Company's Mission Statement: "Effective Use of Russia's Hydropower Resources, Ensuring Reliable Operation of the UES of Russia and Expanded Development of New Renewable Energy Sources for the Benefit of Shareholders and Society". The principal goals of the Company are to increase the Company's value and ensure the system reliability and security, steady development of renewable energy sources, and environmental safety.

The priorities for Management Board of OAO "HydroWGC" are seen as follows: to develop and adopt the Holding Company's development strategy, to complete the consolidation of the Holding Company's assets, to create a coordinated investment programme, to implement the project to build Boguchanskaya HPP, to take part in the harmonization of the regulatory environment, including development of the legal and regulatory framework for all renewable energy sources, and to prepare to take part in the "new" wholesale electricity market: regulated bilateral contracts, day-ahead market, balancing market, systemic services market, power capacity market, and to develop and implement an efficiency programme at the HydroWGC.

The Board of Directors of OAO "HydroWGC" stated that the above development avenues generally meet the interests of RAO UES shareholders and the priorities of Russia's Energy Strategy, and decided to take the mission, goals and priorities of the Company proposed by the Management Board as the basis for drafting the strategy of OAO "HydroWGC".

The Board of Directors resolved to create a Strategy Committee under the Board, which will be commissioned to draft the Strategy and submit for Board approval by 1 September 2005.

The Board of Directors also considered the possibility of carrying out the consolidation of OAO "HydroWGC" and its subsidiaries (AO-hydropower plants ("AO-HPPs") and creation of a single operational company.

The Management Board of OAO "HydroWGC" was given the task to develop the target management structure for the hydro generation assets and explore scenarios for the consolidation of OAO "HydroWGC" and its SDCs, taking into account the restrictions provided by Federal Law On Specific Features of Functioning of Electric Power Industry During the Transitional Period No. 36-FZ of 26 March 2003. The Management Board proposals are to be submitted for consideration by the Board of Directors of OAO "HydroWGC" by 1 July 2005.

The Board of Directors approved the 2005 Business Plan based on the annual economic targets set for the Company.

Besides, the Board of Directors approved the Regulation on Credit Policy of OAO "HydroWGC", which comes into force at the beginning of 2006, and set down the guidelines for the Company's credit policy for the period until 2006.

Also, the Board of Directors approved the amendments and additions to the SDCs' Charters and Regulations in connection with the transfer of AO-HPP shares as contributions to the authorized capital of OAO "HydroWGC".

The Board of Directors nominated audit firms to be elected at the Annual General Meetings of shareholders of AO-HPPs.