ELECTRIC NETWORK OF ARMENIA TO IMPLEMENT $164MLN INVESTMENT PROGRAM IN 2008-2010

ARKA
April 22, 2008

YEREVAN, April 22. /ARKA/. The electric Network of Armenia plans to
implement a 51bln AMD ($164.4mln) program in 2008-2010.

According to the draft investment program put on the official website
of the RA Public Services Regulatory Commission, 21.343bln AMD
($68.8mln) are to be invested this year, 20.478bln AMD (about $66mln)
in 2009 and 9.179bln AMD (about $29mln) in 2010.

The program gives priority to renovation, construction and purchase of
distribution networks, modernization of the energy registration system,
purchase of licenses for Microsoft operating systems and software,
equipment, repair of administrative offices and production buildings,
purchase of computers and office furniture, etc..

The investment program is aimed to improve the service quality in
conformity with new international standards. Emphasis will be laid
on the improvement of the quality service in Yerevan. Under the
program a total of 7.2bln AMD (about $23.2mln) are to be allocated
for this purpose.

The implementation of the program will allow the Electric Network
of Armenia to reduce the average annual frequency and duration of
power cuts, ensure safe operation of power distribution networks and
considerably improve the quality of services.

The INTER RAO EES Company (Russia), daughter of the RAO EES Rossii
(60%) and of Rosenergoatom (40%), is full owner of the Electric
Network of Armenia Company.

The Electric Network of Armenia Company has 12 branches, with five
of them in Yerevan, and serves about 935,000 customers.