RusHydro Acquires HPPs Cascade in Armenia

RusHydro Acquires Sevan-Hrazdan HPPs Cascade in Armenia

March 24, 2011. Moscow, Russia.  JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces the acquisition of a 90% stake in CJSC International Power Corporation's (IPC, Armenia) from JSC Inter RAO. IPC's principal asset is Sevan-Hrazdan Cascade of hydropower plants in the Republic of Armenia. The stake was purchased by wholly-owned subsidiary of RusHydro, OJSC Hydroinvest, from INTER RAO HOLDING B.V. (JSC Inter RAO Group).

The Sevan-Hrazdan Cascade includes seven diversion HPPs located on the Hrazdan River in the Republic of Armenia. The HPPs comprise 21 hydro- units, with a total installed capacity of 561 MW. The average annual power generation of the Cascade totals 501 GWh, which represents approximately 9% of the Republic's total electricity generation as at 2009.

The acquisition of the power plants in Armenia is fully in line with RusHydro's strategy for acquiring and developing hydropower assets outside of Russia and is the Company's pilot project of the kind.

NOTE:

JSC RusHydro is Russia's largest power generating company, with 61 renewable energy source (RES) facilities. The Company's total installed capacity is 25.5 GW, including 6,400 MW at Sayano-Shushenskya HPP, which is currently being restored.

JSC RusHydro is a leader in energy production using renewable energy sources, including: water flows, sea tides, wind and geo-thermal energy.

For more information:

Alexander Goldin,

Maxim Novikov

JSC RusHydro, Investor Relations Department

Tel. +7(495) 225-3232 ext.1319, 1394

[email protected]

[email protected]

The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.