Moscow, 21 March 2005. At its regular meeting held today, the Audit Committee under the Board of Directors of RAO "UES of Russia" considered the establishment of a unified controlling service at RAO "UES of Russia". Such an entity is to be created pursuant to the amendments to the laws of the Russian Federation (order of the Federal Service for the Financial Markets No. 04-1245/??-? of December 15, 2004 "On the Approval of the Regulation on the Organization of Trading on the Securities Market").

The principal tasks assigned to the controlling service will be carrying out a comprehensive analysis of the information provided by all internal control systems in order to identify inefficient business-processes, and developing relevant recommendations to the executive management of RAO "UES of Russia".

The Audit Committee decided to submit its proposals on the creation of the unified controlling service within the Holding Company for review by the Management Board.

Also, the Audit Committee heard a progress report on the organization of analysis and improvement of internal control system for fuel supply and utilization at RAO "UES of Russia" ("Calorie Project") and considered the draft Order "On the Creation of the Working Group for the Development and Implementation of the Internal Audit and Control System for Procurement, Including Fuel Supply and Utilization". The Committee noted the information on the internationally accepted practices in organizing internal control systems for fuel supply and utilization presented by IMC-Consulting, approved as associate contractor for the Calorie Project.