Federal Grid Board Sets Price for New Share Issue

Federal Grid Board Sets Price for New Share Issue

Moscow, 17 December 2013 - Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company") (Moscow Exchange, LSE: FEES), part of the Russian Grids Group of companies and operator of Russia's unified electricity transmission grid system, announces that its Board of Directors on 13 December 2013 approved the price of 50 kopecks (RUB 0.50) per share for the Company's additional share issue of 9,431,399,773 new ordinary shares, representing a total amount of RUB 4,715,699,886.5.

The Board of Directors also approved related party transactions in connection with the Russian Federation Ministry of Energy's participation in the additional share issue. The Ministry of Energy plans to purchase new shares in the amount of RUB 3,755,566,300.

Federal Grid Company's CEO Andrey Murov approved 17 December 2013 as the start date of the new share issue.

Federal Grid Company's Board of Directors on 12 November 2013 approved a share issuance prospectus and a capital increase. The Central Bank of Russia's Financial Markets Service registered both the capital increase and the share issuance prospectus on 21 November 2013.

In accordance with this decision, Federal Grid Company may place additional shares through an open subscription at a price of 50 kopecks until 20 February 2014.

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About Federal Grid Company

Federal Grid Company is part of OJSC Russian Grids is the operator and manager of Russia's unified electricity transmission grid system. The company operates over 131,000 km of transmission lines and has over 334.8 GVA of installed transformer capacity. Based on the length of transmission lines and transformer capacity in place, Federal Grid is the largest publicly traded electricity transmission company in the world.

Federal Grid's business is to provide electricity transmission and technological connection services.It maintains and develops the grid system and supervises grid facilities and infrastructure in75 regions of Russia, covering a territory of 14.8 million square kilometres. Its customers are regional distribution companies, electricity suppliers and large industrial enterprises. The Company is a natural monopoly with 80.6% stake controlled by Russian Grids.

Federal Grid Company was incorporated in June 2002 as part of reorganisation of Russia's electrical power industry.

Federal Grid Company's common shares are included on Moscow Exchange under the ticker FEES and the Company's GDRs are listed on the London Stock Exchange and traded under the same FEES symbol.

In 2012 the Company's IFRS consolidated revenue was RUB 140,313 million, while adjusted EBITDA was RUB 82,133 million, and adjusted profit for the period was RUB 29,956 million.

Further information can be found at www.federal-grid.com