Moscow, 9 September 2005. The first meeting of the Board of Directors of ZAO "Agency for Power Balance Forecasting" (ZAO "APBF", Agency) approved the appointment of Yakov Urinson, Deputy Chairman of the Management Board and Head of the Corporate Center of RAO "UES of Russia", as Board Chairman, and Alexey Sannikov, Head of Electricity Sector Regulation at the Federal Tariff Service, as Deputy Chairman of the APBF Board of Directors.

The principal goal of the Agency to create an effective system to forecast operations and development of the electricity industry based on the market principles. The Agency will be engaged in the preparation of short-, medium-, and long-term power balance forecasts, supplying the Federal and regional authorities and electricity sector entities with information needed to ensure that timely decisions are taken in the area of technological, tariff, investment, and fuel policies.

The Agency will focus on the activities currently undertaken by RAO "UES of Russia" which relate to the preparation of power balance forecasts, presentation of reports and analysis of operations of the UES of Russia.

The Agency's services will be used by RAO UES entities, other electricity industry participants and associations, infrastructure organizations of the energy sector, fuel suppliers, major consumers of electricity, regional authorities, and investors.

ZAO "Agency for Power Balance Forecasting" was registered with the state authorities on 4 August 2005. Anatoly Chubais, Chairman of the Management Board of RAO "UES of Russia", signed the Order to establish the Agency on 4 July 2005. Igor Kozhukhovsky, Head of Economic Policy Department of the Corporate Center of RAO "UES of Russia", was appointed Director General of the Agency.

The resolution on the establishment by RAO "UES of Russia" of ZAO "Agency for Power Balance Forecasting" as a wholly-owned subsidiary was approved by the Board of Directors of RAO "UES of Russia" on 26 April 2005.

Pursuant to the resolution of the Board of Directors, the Agency will comprise three departments: department of short-term power balances in terms of volume and cost, department of medium- and long-term power balances and investment, and information and analysis department.

The charter capital of ZAO "Agency for Power Balance Forecasting" will be RUB3.5 million, and will be divided into ordinary shares of RUB1 par value.