Moscow, 4 March 2005. RAO "UES of Russia" stated that the Company is satisfied with the results of the investigation carried out by the General Procuracy into the causes and circumstances of the fire in a hostel in the city of Kyzyl, Republic of Tyva.

As a result of the investigation, the General Procuracy of the Russian Federation found that the hostel located in Paroturbinnaya Street, city of Kyzyl, took fire as a result of violation of fire safety rules by the housing management organization and the negligence by the officers of the Kyzyl Fire Inspectorate. The electrical wiring in the building was in a bad state. Besides, the hostel residents made an unauthorized connection to the transformer substation, which caused a short circuit and the fire.

The findings of the General Procuracy suggest that the Tyva President Sherig-ool Oorzhak was wrong in blaming OAO "Tyvaenergo" for the tragedy and calling for RAO "UES of Russia" to dismiss the regional energy company's officers.

We at RAO "UES of Russia" understand that the first reaction to such tragic events is nearly always a very emotional one, but we do object to accusing anyone before an investigation into the causes and circumstances of the accident is completed. It is all the more unacceptable when such unsubstantiated public accusations are made by heads of legislative and executive branches of constituent entities of the Russian Federation.