Moscow, 8 April 2005. RAO "UES of Russia" has published the financial statements of OAO RAO "UES of Russia" for the year 2004 prepared according to the Russian Accounting Standards (RAS).

Balance Sheet as of 31 December 2004:

During the year, the short-term receivables of OAO RAO "UES of Russia" decreased by RUB1.54 billion to RUB23.92 billion from RUB25.46 billion.

The long-term receivables totalled RUB32.61 billion as of 31 December 2004, up RUB13 billion compared with RUB19.55 billion at the beginning of 2003. Such change in the accounts receivable was due to additional contributions made by the Company under partnership agreements, including with OAO "Bureyskaya HPP".

Over 2004, the short-term accounts payable declined by RUB1.29 billion to RUB16.54 billion from RUB15.25 billion, which was chiefly due to the decline in debts owed to suppliers and contractors for the goods and services (including electricity suppliers on the FOREM, construction and repair firms).

Last year, the long-term payables fell by more than two thirds to RUB1.96 billion from RUB6.57 billion. This can be attributed to partial write-off of penalties and fines relating to taxes as the restructured debts were paid in due time.

Income Statement for the Year 2004

In 2004, the sales revenue of OAO RAO "UES of Russia" amounted to RUB34.46 billion, down RUB17.21 billion from RUB51.67 billion in 2003. The decline in the sales during the reporting period was primarily due to the reduction of the subscription fee by RUB12.12 billion after a separate tariff was established for OAO "UES FGC" and OAO "UES SO-CDA". Other reasons for the decrease include the transfer of functions of the electricity export/import operator to ZAO "INTER RAO UES" and termination of sale of electricity and heat by the Company's branches "Kharanorskaya TPP", "Saratovskaya HPP", and "Nizhegorodskaya HPP" in connection with the establishment of OAO "Kharanorskaya TPP", OAO "Saratovskaya HPP", and OAO "Nizhegorodskaya HPP".

In 2004, the sales profit of OAO RAO "UES of Russia" declined by RUB 6.57 billion year-on-year to RUB24.25 billion from RUB30.81 billion in 2003. Over the period under review, the pre-tax profit fell by nearly RUB5.41 billion to RUB27.23 billion from RUB 32.64 billion in 2003.

The net profit of OAO RAO "UES of Russia" amounted to RUB24.07 billion, down RUB0.54 billion from RUB24.60 billion in 2003.