OREANDA-NEWS. September 7, 2007. According to official information received by OJSC TGC-5 from Interdistrict Inspectorate No. 46 of the Federal Tax Service an entry was made in the Unified State Register of Legal Entities on September 3, 2007 with respect to state registration of interim company OJSC TGC-5 Holding Company being spun-off from RAO UES of Russia and concurrent accession of that company to OJSC TGC-5 thus completing the spinning-off of OJSC TGC-5 from RAO UES of Russia holding company. From now on, the capital stock structure of OJSC TGC-5 is as follows: IES-Holding will continue as the majority shareholder of TGC-5, the state will become a blocking shareholder with a 25.09% interest, while the stake of TGC-5 minority shareholders will be 33.9%.

TGC-5 General Director Eduard Smelov has commented on the company's spinning-off from RAO UES of Russia saying that "TGC-5 has become the first private territorial generation company. Consideration that the spinning-off will result in TGC-5 free float reaching up to 30% of its capital stock and that TGC-5 is the main electric power producer and the leading heat producer in the area of its presence implementing an ambitious investment program that provides for commissioning of over 400 MW of new capacity, we are certain that the investment community will show interest in our company".

The list of shareholders to receive OJSC TGC-5 shares in addition to the stock of OJSC RAO UES of Russia already held by them has been drawn up as of September 3, 2007. The number of shares of OJSC RAO UES of Russia owned by them as of that date remains unchanged. According to the spinning-off procedures, each owner of RAO UES of Russia ordinary shares is entitled to receive 13,595 TGC-5 ordinary shares per each ordinary share of RAO UES of Russia that they owned as of September 3, 2007 and to retain the same number of RAO UES of Russia ordinary shares that they had held before that date.