Consolidated Balance Sheet at 31 December 2007

Total assets of Mosenergo Group for 2007 year increased by RR 109,067 million, including increase of non-current assets by RR 73,677 million and increase of current assets by 35,390 million. The change of non-current assets mostly resulted from the increase of the property, plant and equipment value by RR 71,357 million. The increase of the property, plant and equipment value mostly resulted from the change of Mosenergo accounting policy to revaluing its property, plant and equipment from 1 January 2007 (value increase amounted to RR 49,387 million), and construction in progress increase (by RR 18,954 million), input of new facilities (RR 11,342 million). The growth of the current assets value mostly resulted from the placement of temporarily available monetary funds received from additional issue of shares in held-to-maturity investments in the amount of RR 15,201 million, in deposits amounted to RR 11,000 million and from trade and other receivables increase by RR 6,645 million. The change of trade and other receivables indicator during the reporting period mostly resulted from the increase of advances to suppliers and prepayments of RR 2,864 million and the increase of trade receivables by RR 2,625 million.

Equity of Mosenergo Group for 2007 year increased by RR 96,546 million, including the additional issue of 11,500 million ordinary shares (increase of share capital by RR 11,500 million and recognition of share premium in amount of RR 49,220 million) and also revaluation of property, plant and equipment as at 1 January 2007 (revaluation surplus as at 31 December 2007 amounted to RR 37,534 million). The total current and non-current accounts payable, including deferred tax liabilities, increased by RR 11,637 million for 2007 year. The change of account payable indicator in the reporting period mostly resulted from growth of deferred tax liabilities in amount of RR 11,415 million that related to revaluation of property, plant and equipment performed as at 1 January 2007.

Consolidated Income Statement for the year ended 31 December 2007

Revenues of Mosenergo Group from operating activities for 2007 year have increased by RR 10,707 million (by 16%), including increase of electricity sales by RR 7,967 million and heat sales – by RR 2,066 million. Increase of electricity sales mostly resulted from the increase of prices by 20% and increase of volumes of electricity sold by 4%. Increase of heat sales mostly resulted from the increase of prices by 7%, at the same time volumes of heat sold decreased by 0.4%.

Operating expenses of Mosenergo Group (excluding one-off effect from the reversal of the impairment of the property, plant and equipment in 2006) increased by RR 12,888 million (by 20%), including increase of fuel expenses (by RR 3,570 million), depreciation of property, plant and equipment (by RR 2,912 million), purchased electricity (by RR 2,308 million). Growth of depreciation of property, plant and equipment for 2007 year relates to revaluation of property, plant and equipment performed as at 1 January 2007.

Due to growth of operating expenses exceeded growth of revenues from operating activities for 2007 year (mainly due to increase of depreciation of property, plant and equipment) operating profit of Mosenergo Group for the reporting period (excluding one-off effect from the reversal of the impairment of the property, plant and equipment in 2006) decreased by RR 2,192 million as compared to the same period of 2006 and amounted to RR 313 million.

Financial income of Mosenergo Group for 2007 year have increased by RR 1,420 million mainly due to income received from placement of temporarily available monetary funds gained from additional issue of shares.

Net profit of Mosenergo Group for 2007 year (excluding one-off effect from the reversal of the impairment of the property, plant and equipment in 2006) increased by RR 245 million as compared to the prior year and amounted to RR 837 million.

Consolidated Statement of Cash Flows for the year ended 31 December 2007

Net cash generated from operating activities for 2007 year amounted to RR 2,900 million, for 2006 year - RR 6,257 million. For 2007 year Mosenergo Group used RR 53,914 million for investing activities that is by RR 40,125 million more than the indicator for 2006 year. For 2007 year Mosenergo Group generated RR 56,421 million from its financing activities that is by RR 45,543 million more than the indicator for 2006 year. Cash and cash equivalents as at 31 December 2007 amounted to RR 11,136 million that is by RR 5,407 million more than the indicator for 2006 year.