JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces the results of the Board of Directors that was held September 2, 2011.

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The Board of Directors approved a new technical policy of RusHydro. The document was developed to optimize the implementation of new technical solutions at Company's facilities and constitutes an important instrument of the company's strategy implementation in the field of technical system control.

Member of the Board of Directors, Viktor Kudryaviy commented: «The technical policy of RusHydro is a compehensive document, that doesn't confine itself to general recommendations and requirements to new equipment. It aims to create of a complex system that ensures reliability, safety and effective use of equipment and facility as a whole during its life cycle. The technical policy of RusHydro is a top level document that provides the development of necessary corporate regulations and clear setting of priorities for technical policy-making in RusHydro. Both Russian and foreign knowledge base influenced heavily this document».

Implementation of the new policy will result in higher technological and environmental safety, reliability of hydroelectric facilities and equipment, as well as higher efficiency of operation due to improved characteristics, better management of technological processes and water use.

Director for technical policy Rasim Khaziakhmetov also noted: «The expertise of RusHydro let us formulate more detailed requirements to technical policy regulations. Meeting these requirements will result in a totally new modernization process, which ensures sustainable improvement of production and technological assets of the Company».

The technical policy will lay out a foundation for forecasting the dynamics of technical development of generating assets.

The new technical policy was developed to replace the old regulations on the technical policy, that was approved by the Board of Directors of RusHydro in 2006.

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The Board of Directors approved the terms of a loan provided by RusHydro to JSC ESK RusHydro in the amount of 62,500,001 euro. Interest free loan will be granted in rubles at the rate of the Central Bank of the Russian Federation for date of providing each tranche; the loan shall be repaid before December 31, 2020.

The obtained monetary funds will be allocated to finance a joint project with Alstom Group to develop the production of hydro-power and auxiliary equipment in the Republic of Bashkortostan, where ESK RusHydro is the operator from RusHydro Group.

The plant will specialize in manufacturing hydro-power equipment for small HPPs with a capacity up to 100 MW and pumped storage plants with capacity under 150 MW, as well as equipment for automatic process control systems and integrated security systems. The first hydro-power equipment will be manufactured in 2013. The joint venture will aim its production at both the Russian and foreign markets; the manufactured equipment will be also purchased within the framework for upgrading and construction of new RusHydro's HPPs.

Chairman of the Management Board Evgeny Dod commented: «Creation of a joint production venture with Alstom is a milestone event for the hydropower industry. I believe that the best foreign technology and expertise of Alstom brought to the Russian soil will help create a totally new kind of equipment and speed up the modernization of our production facilities».

The plant is one of the first joint projects of RusHydro with one of the world leading producers of equipment for HPPs - Alstom. Plant construction will allow to create about 500 new working places in the Republic of Bashkortostan and ensure about 500 million rubles of tax revenues in the republic budget by 2020. Laying of the foundation stone on new plant construction site is planned for autumn of 2011.

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The Board of Directors also reviewed the issue of acquisition of shares of LLC Energy supply company of Bashkortostan (ESK Bashkortostan) as a confidential matter of the agenda.