1. LENENERGO 2003 POLAR LIGHT

2. 2 GENERAL OUTLOOK Transmission lines by voltage less than 220 kV 97% 330 kV 1% 220 kV 2% The largest power company in the North-West Russia Installed capacity 3244.5 MW Franchise to 6.4 mln. people in St.Petersburg and Leningrad region covering 85.9 thousand sq.km We distribute 99% of electricity and 55% of heat consumed in the region Export access to Finland and Estonia

3. 3 -15 0 15 30 45 60 75 90 WHERE WE STAND – FINANCIAL POSITION Revenue/net profit (mln. USD)Growth rate (2000-2002) 481.3 % Revenue 0 100 200 300 400 500 600 700 800 900 2000 20012002 2003E Net profit 363 718 580 860 10.0 40.8 34.5 -10.7 THE HIGHEST RESULT AMONGST OTHER REGIONAL AO-ENERGO

4. 4 EFFECTIVE TARIFF SETTING SCHEMES Electricity 88.9 kop/kWhElectricity 86.6 kop/kWh Heat average294.56 RUR/GCal Heat average302.33 RUR/GCal St.Petersburg Leningrad Region 5 25 45 65 90 Electricity, kop./kWh Electricity, kop/kWhHeat, RUR/GCal 31.01.0030.04.0031.07.0031.10.0031.01.0130.04.0131.07.0131.10.0131.10.0230.04.0231.07.0201.02.03 0 250 450 650 850 Heat, RUR/GCal 5 25 45 65 90 Electricity, kop./kWh 2003 31.05.0031.08.0030.11.0028.02.0131.05.0131.08.0130.11.0128.02.0231.05.0231.08.0201.02.03 Heat, RUR/GCal 0 100 200 300 400 DUE TO EXPIRY OF KIRISHY LEASE 2003

5. 5 LENENERGO IS AN EXPENSIVE COMPANY COMPARISON OF INSTALLED CAPACITY COST 12 882 5 075 3 495 14 900 8 263 4 750 2 625 1 884 3 253 10 146 13 000 4 547 5 555 47 000 42 000 27 000 13 000 34 000 501 273 193 1 9081 908 180 273 125 136 444 1 617 4 982 1 472 1 545 10 831 12 133 9 980 5 454 32 998 Irkutsk Bashkir Samara Mos Sverdlov Kuzbass Novosibirsk Chelyab RUSSIAN AVERAGE LENENERGO CEZ (Czech) Huaneng Power (China) Copel (Brasil) Cemig (Brasil) Korea Electric Power (Korea) Developing Markets Average Endesa (Spain) Entergy (USA) Cinergy (USA) E-ON (Германия) Developed Markets Average 38.9 53.8 55.2 128.1 21.8 57.5 47.6 72.2 59.4 136.5 159.4 383.2 323.7 278.1 230.4 275.0 288.9 369.6 419.5 970.5 512.1 AO-energo Installed Capacity (MW) Market Capitalization (mln US$), as of 14.11.03 Cost of Installed Capacity (US$ / kW)

6. 6 WEIGHTED VALUE OF LENENERGO BUSINESS LINES Market capitalization ~ 500 mln. USD 150 50 300 GenerationTransmissionSales & non-core assets

7. 7 NEW REGIONAL GENCO COMPOSITION  Share of regional energos in the composition of the GenCo  Installed capacity composition (MW) 60%25%15% LENENERGO KOLENERGOKARELENERGO 3 218 MW TPP 2 876 MW HYDRO + = 6 094 MW

8. 8 VALUATON OF GENERATION  Valuation of the GenCo generation (sum of the parts) based on conservative capacity costs 3 218 MW * 150 USD/KW = 482.7 K USD 2 876 MW * 400 USD/KW = 1 150.4 K USD TPP HYDRO Value of generation 1 633.1 K USD +

9. 9 SO – IS LENENERGO EXPENSIVE?  Generation value of the GenCo  60% LE share in the GenCo composition  Value of LE’s shareholders in GenCo generation in 2005  Today’s LE value 980 K USD 500 K USD 1633.1 K USD Given the assumption that the value of transmission & sales business is zero, the upside for current LE shareholders = 1.96