Moscow, 15 February 2006. OAO "Yuzhnoe Yakutskenergo", the subsidiary established as a result of spin-off of the Southern energy area of OAO "Yakutskenergo", has completed its state registration. This step is part of the process to restructure the energy systems in the Far East of Russia.

OAO "Yuzhnoe Yakutskenergo" was registered with the Inspectorate of the Federal Tax Service of Russia for the city of Neryungri, Republic of Sakha (Yakutia), as a wholly-own subsidiary of OAO "Yakutskenergo".

The authorized capital of OAO "Yuzhnoe Yakutskenergo" is RUB3.2 billion and is divided into ordinary shares of RUB 1 par value. It is planned that OAO "Far Eastern Energy Management Company" (FEEMC)** will perform the functions of the One-man Executive Body (CEO) at OAO "Yuzhnoe Yakutskenergo", OAO "Amurenergo", and OAO "Khabarovskenergo" with effect from 1 April 2006.

Earlier, in December 2005, the companies established in the course of reform in the Far Eastern energy systems, OAO "Far Eastern Generation Company" (FEGC) and OAO "Far Eastern Distribution Company" (FEDC), completed their registration with the state authorities.

_________________________

* The project to restructure the energy systems in the Far East was approved by the Board of Directors of RAO "UES of Russia" at its meeting held 2 September 2005. The project seeks to raise reliability of the Far Eastern energy system, to create a system to run the region's energy sector after RAO "UES of Russia" is unbundled, and to increase capitalization and investment attractiveness of the energy companies in the Far East of Russia.

The restructuring plan for the energy systems in the Far East includes a number of concurrent corporate actions.

In particular, the following companies were established in the region: OAO "Far Eastern Generation Company", OAO "Far Eastern Distribution Company", with an authorized capital of RUB5 million each, and OAO "Yuzhnoe Yakutskenergo", a subsidiary based on the assets of the Southern energy area of OAO "Yakutskenergo".

In H2 2006, the authorized capitals of OAO "Far Eastern Generation Company" and OAO "Far Eastern Distribution Company" will be increased through issuance of additional shares. Payment for those shares will be made in the form of generation and heating grid assets, and distribution grid assets of OAO "Dalenergo", OAO "Khabarovskenergo", OAO "Amurenergo", ZAO "LuTEK", and OAO "Yuzhnoe Yakutskenergo".

In December 2006, OAO "Far Eastern Energy Company" ("FEEC") is expected to register with the state authorities. FEEC, the region's unified holding company, is expected to be formed through merger of OAO "Khabarovskenergo", ZAO "LuTEK", OAO "Amurenergo", OAO "Yuzhnoe Yakutskenergo", and OAO "Dalenergo".

It is planned that FEEC, FEGC, and FEDC will begin operations on 1 January 2007. By that time, all required corporate procedures are to be completed. In particular, shareholders of the existing and new companies are to hold general meetings, and the new legal entities are to register with the authorities.

**OAO "Far Eastern Energy Management Company" performs the CEO functions at OAO "Dalenergo", ZAO "LuTEK", OAO "Sakhalinenergo", OAO "Kamchatskenergo", and OAO "Geotherm". OAO "FEEMC" is carrying out a set of measures designed to increase the investment attractiveness of all the five companies under management, and is making preparations for restructuring of the energy sector in the Far East of Russia as a whole.