INTER RAO UES HAS NO MANAGEMENT PROBLEMS WITH “ELECTRICITY NETWORKS OF ARMENIA”

Arka News Agency, Armenia
March 29 2006

Yerevan, March 29. /ARKA/. The “INTER RAO UES” Company has no
management problems with “Electricity Networks of Armenia”, Director
General of INTER RAO UESYevgeny Dod told reporters.

“We have no claims to make to Mantrov and Gladunchik. What is going
on is a domestic situation. The Network is steadily operating.

Collection is payments is at 102% level, with no management problems,”
Dod said.

In his turn, Leonid Drachevsky, Board Vice-Chairman, “UES of Russia”
stated that the problem was a psychological and emotional, rather
than a technical one.

“This does not contribute to stability… But from the technical
point of view, we have no problems with the electricity network,”
Drachevsky said.

Armenia’s mass media started disseminating the information on
disagreements between Director of the “Electricity Networks of Armenia”
CJSC Yevgeny Gladunchik and Deputy Director of INTER RAO UES Mikhail
Mantrov. In this connection, Mantrov’s release from the post of Head
of the “Southern Section” of the company was not ruled out.

INTER RAO UES holds 100% of the “Electricity Networks of Armenia”
CJSC, Sevan-Hrazdan coordinated hydro-power system, as well as is
the financial managers of the Armenian nuclear-power plant.