Moscow. 4 July 2006. On 1 July 2006, OAO "TGC-2" received certificates from the Inspectorate of the Federal Tax Service of Russia for the city of Yaroslavl confirming that OAO "Vologodskaya CHPP", OAO "Kostroma Generation Company", OAO "Novgorod Generation Company", OAO "Tver Generation Company", and OAO "Yaroslavl Energy Company" have been removed from the Unified State Register of Legal Persons in connection with their merger with and into OAO "TGC-2".

The target structure of OAO "TGC-2" providers for merger of the above regional generation companies (RGCs) and OAO "Arkhangelsk Generation Company" with and into OAO "TGC-2". The merger of OAO "Arkhangelsk Generation Company" with TGC-2 is expected to take place in Q4 2006 after the company's financial position.

The shareholder meetings of the RGCs and the joint shareholder meeting of the RGCs and OAO "TGC-2" held in March and May 2006 approved, with the support of minority shareholders, the resolutions required to carry out the merger of the RGCs with and into TGC-2.

Following the merger, TGC-2 has started operating activities.

OAO "TGC-2" is expected to complete the consolidation of its subsidiaries in Q4 2006, after the merger of OAO "Arkhangelsk Generation Company" with TGC-2. TGC-2 shares are expected to be floated on the stock market in Q4 2006.