Moscow

On March 22, 2005, AO MOSENERGO, jointly with the Russian Trading System organized a roundtable for professional securities market participants. The topic of the meeting was: «Trading of AO MOSENERGO’s shares during the restructuring period.» The Company was represented by Dmitry Vasiliev, first deputy general director of AO MOSENERGO.

In accordance with the reforms plan, AO MOSENERGO will be split into 13 new companies along business lines. Each entity will be set up as a joint-stock company that will own part of AO MOSENERGO’s assets. According to Dmitry Vasiliyev, AO MOSENERGO’s shareholders will own the same number of shares that they owned before the restructuring. In addition, each shareholder will receive the pro rata number of shares of all new companies.

AO MOSENERGO’s brand will be retained by the generation company that will receive around 47% of assets. The company will own 17 CHPs with total installed capacity of 10,700 MW and heating capacity that will exceed 34 GCal/h. After the restructuring, AO MOSENERGO will remain the biggest Russian regional power system.

At the meeting participants named further steps that will be taken with the restructuring framework. Until June-July, new companies will have to register with the Federal Service for Financial Markets the decision on the share issue and the report on the results of the share issuance. After this the shares can be floated in the market. The listing has been scheduled approximately for November 2005. Next year, some companies should obtain the approval of the financial market regulator for issuance of ADRs which will help improve liquidity and increase shareholder value. In addition, shareholders of the Moscow Municipal Electric Grid Company may decide to carry out an additional issue that will be placed in favor of the Moscow Government. The similar decision can be taken by shareholders of the Moscow Regional Electric Grid Company with respect to the Moscow Region Government.