| Moscow. August 13, 2007. The "second-tier" public auctions for the sale of shares in energy retail companies, which shares are owned by RAO UES of Russia, will take place September 18-19, 2007.*
The auctions scheduled for September 18 are intended for the sale of:
- 48.66% of shares in OAO Astrakhan Energy Retail Company with the starting price of 350 million rubles;
- 49% of shares in OAO Volgogradenergosbyt with the starting price of 800 million rubles;
- 49.01% of shares in OAO Voronezh Energy Retail Company" with the starting price of 300 million rubles;
- 49% of shares in OAO Kurgan Energy Retail Company with the starting price of 80 million rubles;
- 48.4% of shares in OAO Energosbyt Rostovenergo with the starting price of 950 million rubles;
- 55.13% of shares in OAO Stavropolenergosbyt with the starting price of 650 million rubles;
- 100% of shares in OAO Khakasenergosbyt with the starting price of 230 million rubles.
The auctions scheduled for September 19 are intended for the sale of:
- 49% of shares in OAO Bryansk Retail Company with the starting price of 375 million rubles;
- 52.25% of shares in OAO Kaluga Retail Company with the starting price of 610 million rubles;
- 100% of shares in OAO Karelia Energy Retail Company with the starting price of 350 million rubles;
- 50.11% of shares in OAO Komi Energy Retail Company with the starting price of 375 million rubles;
- 49% of shares in OAO Tver Energy Retail Company with the starting price of 550 million rubles;
- 49% of shares in OAO Udmurt Energy Retail Company with the starting price of 500 million rubles.
Applications for the auctions will be accepted from September 3, 2007, to and including September 14, 2007. Bids are invited by an accredited agent for the disposal of RAO UES of Russia's assets, OAO Urals Energy Management Company.
Participants in the auctions may be Russian and foreign corporate entities and individuals. The participant offering the highest price will be declared the preferred bidder.
Upon completion of the auctions, bidding reports and agreements for purchase and sale of shares will be simultaneously signed with the preferred bidders. In accordance with the auction terms and conditions, the preferred bidders will own the purchased shareholdings, including upon obtaining the consent from the Federal Antimonopoly Service of the Russian Federation and upon making payment for the shares in full within 30 calendar days from the date of execution of the agreements for the purchase and sale of shares.
Notice of the public auction is available on the RAO UES of Russia corporate website in the section "Procurement/ Information About RAO UESR Purchases and Sales."
_________________________________________________
*The Board of Directors of RAO UES of Russia made the decision in principle to divest itself of its shareholdings in energy retail companies on December 8, 2006. The principal method of disposing of shares in energy retail companies is to sell them at a public auction at a starting price that is not lower than their market value determined by an independent appraiser.
The April 27, 2007, meeting of the Board of Directors of RAO UES of Russia defined a list of energy retail companies whose shares would be sold at the "second-tier" public auctions. It is planned that the August 31, 2007, meeting of the Board of Directors will consider changes in the list of "second-tier" energy retail companies, specifically the exclusion of OAO Saratovenergo and OAO Kaluga Retail Company from the list and the inclusion OAO Astrakhan Energy Retail Company and OAO Volgogradenergosbyt in the list. The same meeting is expected to approve the "third-tier" auctions to sell shares in energy retail companies, scheduled for November 2007.
The sale of energy retail companies will substantially increase the number of independent energy retail companies that apply advanced approaches to retailing, constantly expand the range of services, and improve the customer service quality due to stronger competition among energy retail companies in the retail market.
| 
.jpg){kind=small}
