On Monday, January 15, D.V. Vasilev, First Deputy General Director for Strategy and Corporate Affairs of OAO Mosenergo, reported that preparation of an additional issue of the Company’s shares had entered the final stage. All documents required for registering the additional share issue were delivered to the Federal Financial Markets Service (FFMS) on January 10, 2007. On receiving a positive decision by the FFMS, OAO Mosenergo’s shareholders will be notified of the period of preemptive right to purchase shares of the new issue, which by law is 45 days. On expiry of the set period, the shares will be placed by closed subscription in favor of the strategic investor – Gazprom group. All necessary information concerning the holding of the additional share issue will be disclosed in accordance with current legislation. Receipt of funds from the additional share issue for the purposes of financing the Company’s investment program is expected in April–May 2007.

As D.V. Vasilev reported, the restructuring of OAO Mosenergo that took place in 2004-2005 has created the conditions for successful attraction of investments, including by holding an additional issue of the Company’s shares.

As a result of the restructuring, 13 companies were split off from OAO Mosenergo and the Company’s properties were registered. This is the first restructuring in the Russian power-generating sector of a major power company whose shares are actively traded on European and American markets in the form of depositary receipts. In addition, EBRD credit in the amount of $250 million US was attracted for technical reequipment of power plants, a bond loan to refund the Company’s debt liabilities has been arranged, and an additional issue of OAO Mosenergo shares has been prepared.

In connection with completion of the restructuring of OAO Mosenergo and preparation of the additional issue of Company shares, in January 2007, D.V. Vasilev will be moving to a new position as managing director at JPMorgan Investment Bank, where he will be working with the bank’s large clients in the Russian industrial sector, including the power industry.