ARTSAKH HYDRO POWER PLANT RELEASES IPO MEMORANDUM

ARKA
March 17, 2009

YEREVAN, March 17. /ARKA/. Artsakh Hydro Power Plant has released the
Investment Memorandum of the Initial Public Offering, the company’s
press office reported on Monday.

The memorandum intends to provide information and clarification to the
potential investors on the main terms and conditions of the offering.

On March 10, "Armenbrok" OJSC, the placement agent, announced the
first initial public offering worth 3.45 billion (over $9.5 million).

According to the report, 3,285,715 shares are to be placed with AMD
1,050 offer price per share.

Artsakh Hydro Power Plant says in the memorandum that it intends to
address the net proceeds from initial public offering to construction
of three HPPs on the largest rivers of Nagorno-Karabakh Republic –
Tartar and Trghi.

Proposed HPPs are small (with max capacity of 5 MWt) units, equipped
with modern turbines and generators. The estimated useful life of
each plant is 40 years.

The Memorandum also stresses that the company’s fixed prices and
volumes of sales, no local or global crisis effect on its activities,
5% profit tax rate, achievement of energetic independence, government
support, favorable dividend policy and high returns in the light of
low business risks make investors optimistic.

The Company was established on November 1, 2007, as a 100% state
owned closed joint stock company.

General activity20of the Company is production and sale of electro
energy, which is the only source of its profit. Company produces
electro energy via Sarsang Hydro Power Plant. Produced energy with
fixed price is sold to the only operator of NKR in electro energy
market – "Artsakhenergo" CJSC.

"In case of success with these offering, the Company intends to
implement one more offering in 2010 to fund the construction of two
additional HHPs – Trghi 2 and Trghi 3", the Memorandum says.

According to initial estimates, the construction of these two HPPs
will cost AMD 1.724 billion which will be the volume of the new
offering. Only the draft project currently exists, and the details
will be adjusted in the future.