Moscow United Electric Grid Company

*At the annual General Shareholders’ Meeting which took place on May, 28th of 2008 a decision is taken not to pay out dividends by results of 2007 because according to item 1 of article 43 of FL “On joint-stock companies” No. 208-FL dd.26.12.1995 JSC “MOESK” doesn’t have a right to take a decision on dividends payout on shares before a buyback of all the shares which must be bought back at shareholders’ demand who voted against or who didn’t take part in the Extraordinary Shareholders’ Meeting (April, 18th of 2008), at which a decision was taken on the reorganization of JSC “MOESK” by way of connection to it of JSC “Moscow City Electric Grid Company”.

** All the net profit of the Company by the work results for 2008 is formed due to revenues from technological connection of consumers to the electric grids. Under the tariff regulation of services on technological connection all the revenue from the given activity type must be directed for investment expenses, dividend payouts are not stipulated by the tariff. So, taking into account the peculiarities of the financial result formation, all the net profit received is an increase of volume and cost of the fixed assets and isn’t expressed in cash-equivalent item. Consequently the dividends payout was possible only on account of loan funds. It was extremely unreasonable in terms of the global financial crisis.