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RAO UES Anatoly Chubais, CEO UBS Annual Conference November 15, 2007 2008 Reform Completion: Unlocking shareholder value

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Disclaimer This document is confidential and has been prepared by RAO UES (the “Company”) solely for use at the conference and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose. THIS DOCUMENT MAY NOT BE DISTRIBUTED IN OR INTO THE UNITED STATES OR TO A RESIDENT, NATIONAL OR CITITZEN OF THE UNITED STATES. This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its presentation, communication or distribution form the basis of, or be relied on in connection with, any contract or investment decision. These written materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities act of 1933, as amended. Any public offer or distribution of securities to be made in the United States will be made in accordance with a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The Company has not registered and does not intend to register any portion of any offering in the United States or conduct a public offering of any securities in the United States. This presentation is only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors"). In addition, in the United Kingdom, this presentation is being distributed only to, and is directed only at, (i) Qualified Investors who have professional experience in matters relating to investments who fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") and Qualified Investors falling within Article 49(2)(a) to (d) of the Order, and (ii) Qualified Investors to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). This presentation must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors. Any investment or investment activity to which this presentation relates is available only to (i) in the United Kingdom, relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors, and will be engaged in only with such persons. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents. This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements and reflect the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, performance, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that the actual results of operations, financial condition and liquidity of the Company and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document.  In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review or confirm expectations or estimates or to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation. By attending this presentation, you agree to be bound by the foregoing limitations.

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Two final chords of the reform Corporate and legal actions taken according to the plan Coordinated Agreed Synchronized Reform

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Competitive and Monopolistic Sectors: Target Structure Companies Reform

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Functional unbundling Legal unbundling Ownership unbundling The issue is not settled yet for the majority of EU countries: Ownership unbundling of VICs and spin-off of distribution grids EU countries Deadline for ownership unbundling of RAO UES (Federal Law No. 250, November 4, 2007) Russia July 1, 2008 ?? Power Sector: Functional, Legal and Ownership Unbundling Reform

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Total: > $20 bn (average price: ~$581 /kW) + Other OGKs/TGKs planned share placements and competitive sales: ~ $20 billion by April 2008 Funds raised From share placements and competitive sales to strategic investors USD in billions OGK-5 OGK-3 TGK-5 TGK-3 OGK-5 OGK-4 TGK-1 OGK-2 TGK-8 OGK-3 Reform

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Schedule: OGKs/TGKs Share Placements and Competitive Sales Schedule for placing additional shares in OGK-6 to be specified Reform

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Government maintains control over transmission, hydro generation… HydroOGK and FGC: Consolidation timeline Starts trading on a stock market Transfer to a single share (merger of RTCs and spin-off) HydroOGK FGC August 2007 July 2008 Aug 2008 Transfer to a single share (swap of shares and merger) Spin-off from UES Starts trading on a stock market Conversion ratios approved (valuation of all hydro plants & HydroOGK Conversion ratios approved (valuation of all RTC & FGC) Minorities ~ 22% UES ~ 78% Minorities <49% State >51% State >76% Minorities <24% Reform

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…and distribution New configuration of IDCs: 11 companies + Far East Distrbution Co Conversion ratios approved (valuation of RDCs) Transfer to a single share: EGMs – merger of RDCs and IDCs, swap of shares Consolidation is completed IDCs start trading on a stock market October 2007 February 2008 April 2008 June 2008 Reform IDCs: Consolidation timeline

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Redemption Issues Shareholders of UES who vote ‘against’ or do not vote on the reorganization can request UES to redeem shares1 Based on the independent valuation by Deloitte as of 1st of April 2007 following redemption prices have been approved by UES BoD: 32.15 RUB ($ 1.23) for one ordinary share 29.44 RUB ($ 1.13) for one preferred share 45 days 30 days Redemption period Repayment period EGM on reorganisation According to the Federal Law “About Joint Stock Companies” redemption amount is limited by 10% of UES NAV 26 Oct End of redemption period 10 Dec End of repayment period 10 Jan Ordinary share redemption price Preferred share redemption price Ordinary share market price Preferred share market rpice Price, $US UES reorganization Valuation Date 1 April 2007 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 1,1 1,2 1,3 1,4 1,5 1,6 09.01.07 06.02.07 06.03.07 03.04.07 01.05.07 29.05.07 26.06.07 24.07.07 21.08.07 18.09.07 16.10.07 13.11.07

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Unlocking the value through unbundling Source: broker reports, Bloomberg. Market data as of November 8, 2007 ¹ As per RAO 2006 full year consolidated IFRS financials ($bn net to RAO UES) 53 Thermal GenCos Miscellaneous assets 79 RAO Sum Of Parts Current market cap. UES reorganization

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UES reorganization Target Structure Companies: Liquidity guaranties At the moment of distribution to UES shareholders all of the spinning off Target structure companies will be listed locally and will have GDRs (exceptions: IDC Holding и Far East Energy Systems – as to be created just at the moment of spinning off from UES) Local listing Issuing GDRs TGK-11 HydroOGK FGC Sochinskaya TES (INTER RAO) IDC Holding Energy Systems ot the Far East All thermal OGKs/TGKs HydroOGK FGC Sochinskaya TES (INTER RAO) IDC Holding Energy Systems ot the Far East

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Competitive wholesale market: Supply/Demand Equation Prices Source: Administrator of Trade System (ATS) Average prices (Europe+Urals and Siberia), Rb/MWh Day (Apr 07) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 01.10.07 08.10.07 15.10.07 22.10.07 29.10.07 Week and month Markets

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Power Market Development Pace of liberalization: government’s plan and actual progress All new capacity and consumption commissioned after 2007 go to the free market 0% 5% 10% 15% 25% 30% 50% 60% 80% 100% 0% 20% 40% 60% 80% 100% Excluding electricity consumption by households actual pace of liberalization (facts and estimates) mandatory increase of the liberalized market share ~ 25% ~35% ~40% ~60% ~70% ~90% 100% Markets

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Power market model: Electricity, capacity and ancillary services markets Markets

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Electricity demand growth outlook: Mid-term and long-term view Source: Ministry of Industry and Energy (Minpromenergo); UES estimates Investments

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2006-2010 RAO UES Capacity Commissioning Program MW 2006 2007 2008 2009 2010 2006-2010 Thermal generation OGKs, TGKs, RAO UES 1 186 1 545 2 050 5 788 14 364 24 934 Hydro OGK 67 690 420 1 224 1 612 4 013 Total commissioning 1 253 2 235 2 470 7 089 15 919 28 947 0 5,000 10,000 15,000 20,000 MW 2006 2007 2008 2009 2010 Investments

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2006-2010 Sources of financing $ bn ~41.8 (31%) ~22 (16%) ~7 (5%) ~33.4 (24%) ~33.6 (24%) Investments Total: $137.8 bn

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New Investors, New Generation New Opportunities

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