THE BOARD OF DIRECTORS OF OGK-4 DETERMINED THE PRICE OF THE CONTRACT WITH THE GENERAL CONTRACTOR OF THE CCGT-400 CONSTRUCTION AT SHATURSKAYA GRES

The Board of Directors of Generation Company Four of the Wholesale Power Market (OGK-4) determined the price of the contract for construction of the CCGT-400 power unit at Shaturskaya GRES with the consortium consisting of General Electric International Inc. (USA) and Gama Guc Sistemleri Muhendislik ve Taahhut A.S. (Turkey). By resolution of the Board of Directors, the contract price will be equal to 219 million Euro and 83,630 thousand dollars (exclusive of VAT and customs duties). The contract value does not take into account additional costs either.

Pursuant to the resolution of the Board of Directors of OGK-4, the issue of approval of the contract with General Electric and Gama, which is a major transaction, is proposed for discussion by the extraordinary general meeting of shareholders of the Company. The meeting of shareholders will be held by absentee voting; the deadline for acceptance of completed ballots is July 2, 2007.

In accordance with the terms and conditions of the contract, the General Electric and Gama consortium will act as the general contractor for design, delivery of equipment and materials, construction and commissioning of a single-shaft combined-cycle gas turbine with an electric capacity of 400 MW (“ready-to-operate” construction) within the scope of the implementation of the project “Creation of the CCGT-400-Based Replacement Capacity of the Shaturskaya GRES Branch of OGK-4”. The contract work will start prior to or on July 6, 2007, their completion date (subject to the test work upon completion of the CCGT-400 construction) – 27 months as of the work commencement date.

The General Electric and Gama Consortium was recognized the winner of the open competition for selection of the general contractor for construction of the CCGT-400-based power unit at Shaturskaya GRES announced by OGK-4 in October 2006. The general contractor contract with the consortium will be signed in early July 2007.

The investment project of creation of the CCGT-400-based replacement capacity at Shaturskaya GRES is included into the List of Priority Sites for Commissioning of Generating Capacities in the Unified Energy System of Russia. The commissioning of CCGT-400 power unit at Shaturskaya GRES is scheduled for Q4 2009. The project implementation value is about 15 billion rubles.