Federal Grid Co announces Annual General Meeting

Federal Grid Company announces Annual General Meeting

Moscow, 17 May 2011 - The Board of Directors of JSC Federal Grid Company of Unified Energy System ("Federal Grid" or the "Company", Ticker: FEES) decided at its meeting on the 16th May 2011 that it will hold its Annual General Meeting (AGM) on 29 June 2011 at 12.00 pm (Moscow Time) at Building 55, 119 Prospect Mira, Moscow. Shareholder registration will commence at 10.30 am on the 19th June 2011.

The list of shareholders eligible to take part in the AGM will be based on the Company's shareholder register as of 16 May 2011.

Agenda:

1. Approval of Federal Grid's 2010 Annual Report;

2. Approval of the 2010 audited annual financial statements of the Company;

3. Approval of the 2010 net profit distribution;

4. The rate and procedure of the dividend payment for 2010;

5. Approval of the remuneration of the members of the Board of Directors (Supervisory Council), excluding state employees, in accordance with the Company's policy documents;

6. Election of the members of the Board of Directors (Supervisory Council) of the Company;

7. Election of the members of the Audit Committee of the Company;

8. Approval of the independent auditor of the Company for 2011;

9. Approval of the new edition of the Company's Charter.

Shareholders may familiarize themselves with the following materials presentedfor discussion at the AGM:

- Annual financial statements of the Company for 2010, including the conclusion of the Auditors and the Audit Committee;

- Annual Report of the Company;

- Conclusion on verification of the data presented at the Company's 2010 Annual Report by the Audit Committee;

- Information about the candidates to the Board of Directors;

- Information about the candidates to the Audit Committee;

- Information about the candidate Independent Auditor;

- Evidence of written consent by the candidates to the Board of Directors and Audit Committee of the Company;

- Draft new edition of the Company's Charter;

- Recommendation of the Company's Board of Directors on the 2010 net profit distribution;

- Recommendation of the Company's Board of Directors on the rate and procedureof payment of the dividend on the Company's shares;

- Proposed resolutions of the AGM

The above materials can be obtained on working days from 9 June to 28 June 2011 between10 am and 5 pm at the following addresses:

- Federal Grid's corporate headquarters at Room 110, 5A Akademika Chelomeya St., Moscow

- The Company's registrar "Registration Company Status" at Building 1,32 Novogorozhskaya St., Moscow

The materials can also be downloaded from the Company's corporate website atwww.fsk-ees.ru.

Voting bulletins will be dispatched to the registered shareholders eligible to vote by 9 June 2011. The completed bulletins can then be returned to the following address: "Registration Company Status", Building 1, 32 Novorogozhskaya Ulitsa, Moscow by 26 June 2011.

Shareholder enquiries:

Nikolay Piotrovich, AGM Secretary

+ 7 (495) 935-3904 Email: [email protected] 

Alexander Dyuzhinov, Head of Investor Relations

+7 (495) 710-90-64 Email: [email protected]

About Federal Grid Company

JSC "FGC UES" ("Federal Grid" or the "Company") is the operator and manager of Russia's unified electricity transmission grid system. With over 121,000 km of transmission lines and over 305 GVA of installed transformer capacity, it is the largest publicly traded electricity transmission company in the world.

Federal Grid's business is to provide transmission and connection services to the Russian wholesale electricity market. It maintains and develops the grid system and supervises grid facilities and infrastructure in 73 regions of Russia, in which it operates. Its customers are regional distribution companies, retail electricity supply and large industrial enterprises The Company operates in an exclusive, competition free environment, and is regulated by the Government of the Russian Federation.

The Company's revenue is mainly driven by the transmission tariff set by the Regulator, the FST. From 1 January 2010 a new RAB (Regulatory Asset Base) tariff framework, designed to stimulate investment and operating efficiency, was introduced. The RAB tariff will be reviewed every five years, with the initial five year period to expire at the end of 2014.

The Company was incorporated in June 2002 as part of reorganization of Russia's electrical power industry. The Russian government is the largest shareholder with a 79.48% stake.

Federal Grid's common shares are included on the RTS and MICEX stock exchanges under the ticker FEES. The Company's GDRs are listed on the London Stock Exchange and traded under the symbol FEES.

Further information can be found at www.fsk-ees.ru/eng