ARMENIAN GOVERNMENT APPROVES SALE OF ELECTRICITY NETWORK TO UES

RIA Novosti, Russia
Sept 26 2005

YEREVAN, September 26 (RIA Novosti, Gamlet Matevosyan) – The Armenian
government has authorized Midland Resources Holding Ltd., a British
company, to sell its 100% stake in Armenian Electricity Networks
(AEN) to Russia’s Unified Energy Systems (UES), a spokesman for the
Armenian Energy Ministry said Monday.

In accordance with Armenian energy legislation, Midland Resources
requested permission from the Armenian government and the Public
Services Regulatory Commission of Armenia to sell its stake to
Interenergo B.V., an offshore subsidiary of UES.

Midland Resources had acquired 100% of AEN shares at $40 million
and lent the shares to Interenergo for a 99-year term in June at an
estimated cost of $73 million, while retaining ownership of the stock.

Interenergo is a joint venture of UES subsidiary Inter UES (60%)
and state-owned Rosenergoatom (40%), the world’s largest nuclear
energy company.

Inter UES, an import-export electricity operator, has electricity
supply contracts with Armenia, Belarus, Georgia, Kazakhstan, China,
Moldova, Mongolia, Lithuania, Latvia, Norway, Russia, Ukraine,
and Finland. The company also manages energy facilities in Armenia,
Georgia, Moldova, and Russia.