1. 1 RAO UES Anatoly Chubais, CEO UBS Annual Conference November 15, 2007 2008 Reform Completion: Unlocking shareholder value

2. 2 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. 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3. 3 Two final chords of the reform Corporate and legal actions taken according to the plan UES Extraordinary General Meeting (October 26, 2007) RAO UES EGM approved the final reorganization (more than 95.43% of the attending shareholders voted for). Deadline for reorganization: UES ownership unbundling by July 1, 2008. UES shareholders will receive shares in all target companies on a pro rata basis Federal Law No. 250 to adjust power sector laws in connection with RAO UES reorganization. Transitional period of the power sector reform will end by July 1, 2008 (date of completion of the RAO UES reorganization). Federal Law No. 250 (November 4, 2007) Coordinated Agreed Synchronized Reform

4. 4 Competitive and Monopolistic Sectors: Target Structure Companies Reform Monopolistic sectors Competitive sectors Thermal Wholesale GenCos (OGKs) HydroOGK Territorial GenCos (TGKs) INTER RAO Federal Grid Company (FGC) System Operator Interregional Distribution Companies (IDC Holding) Energy Systems of the Far East

5. 5 Functional unbundlingLegal unbundlingOwnership 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

6. 6 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-5OGK-3TGK-5TGK-3OGK-5OGK-4TGK-1OGK-2TGK-8OGK-3 Reform

7. 7 Schedule: OGKs/TGKs Share Placements and Competitive Sales Schedule for placing additional shares in OGK-6 to be specified Reform

8. 8 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 2007January 2008March 2008July 2008 August 2007July 2008Aug 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

9. 9 …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 2007February 2008April 2008June 2008 Reform IDCs: Consolidation timeline

10. 10 Redemption Issues  Shareholders of UES who vote ‘against’ or do not vote on the reorganization can request UES to redeem shares 1  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 (1)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 pricePreferred 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 09.01.0706.02.07 06.03.0703.04.0701.05.07 29.05.07 26.06.07 24.07.0721.08.0718.09.0716.10.07 13.11.07

11. 11 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) OGK TGK 5353 2121 2020 Thermal GenCos 13 Hydro GenCo 8 Federal Grid Co. 1 Inter RAO 12 Distr'n 1 Supply Miscellaneous assets 3 79 RAO Sum Of Parts Current market cap. UES reorganization

12. 12 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) Jan 08Feb 08Mar 08Apr 08May 08Jun 08July 08Aug 08Sept 08 Local listing Issuing GDRs TGK-11HydroOGKFGC Sochinskaya TES (INTER RAO) IDC Holding Energy Systems ot the Far East All thermal OGKs/TGKs HydroOGKFGCSochinskaya TES (INTER RAO) IDC Holding Energy Systems ot the Far East

13. 13 Competitive wholesale market: Supply/Demand Equation Prices Source: Administrator of Trade System (ATS) Average prices (Europe+Urals and Siberia), Rb/MWh Day (Apr 07) 200 300 400 500 600 123456789101112131415161718192021222324 200 300 400 500 600 700 01.10.0708.10.0715.10.0722.10.0729.10.07 Week and month Sept06Oct06Nov06Dec06Jan07Feb07Mar07Apr07May07Jun07Jul07Aug07Sept07Oct07 200 300 400 500 600 700 800 Year Markets

14. 14 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% Jan 1, 2007Jul 1, 2007Jan 1, 2008Jul 1, 2008Jan 1, 2009Jul 1, 2009Jan 1, 2010Jul 1, 2010Jan 1, 2011Sept 1, 2006 ~18% (Sept 06) ~19% (Sept 07) 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

15. 15 Power market model: Electricity, capacity and ancillary services markets 5-15 % per year Regulated bilateral contracts Day-ahead market Free bilateral contracts Day-ahead market (auction) competitive Ancillary services market Transition market model Target model – competitive market electricity competitive Annual mandatory decrease of regulated contracts and corresponding increase in trading by competitive prices 2011 – 100% Regulated bilateral contracts Capacity payments market capacity Move to the capacity payments market regulated competitive regulated Move to the ancillary services market Ancillary services tariff ancillary services Markets

16. 16 Electricity demand growth outlook: Mid-term and long-term view Source: Ministry of Industry and Energy (Minpromenergo); UES estimates 5% 5,6% 3,7% 5,3% 3,9% 5%5% 0 2 4 6 2006-20102010-20152015-2020 Basic scenarioOptimistic scenario Investments

17. 17 2006-2010 RAO UES Capacity Commissioning Program MW 20062007200820092010 2006-2010 Thermal generation OGKs, TGKs, RAO UES 1 1861 5452 0505 78814 36424 934 Hydro OGK 676904201 2241 6124 013 Total commissioning 1 2532 2352 4707 08915 91928 947 0 5,000 10,000 15,000 20,000 MW 20062007200820092010 Investments

18. 18 2006-2010 Sources of financing Private investments State budget financing Credits and loans Companies’ funds Other $ bn ~41.8 (31%) ~22 (16%) ~7 (5%) ~33.4 (24%) ~33.6 (24%) Investments Total: $137.8 bn

19. 19 New Investors, New Generation New Opportunities