19 April 2010

ОАО “IDGC of Urals”: 2009 Revenues totaled US$ 1.3 bln.

Ekaterinburg (Ural Federal District, Russia) - ОАО "IDGC of Urals" (RTS and MICEX: MRKU) reports on 2009 results under Russian Accounting Standards (RAS)

- Revenues from services in 2009 totaled US$ 1 299.9 mln. ^[1] (in US$ -10.0%, in RUR +14.8%).

- 2009 expenses reached US$ 1 152.8 mln. (in US$ -15.4%, in RUR +7.9% on 2008).

Table 1. Financial result of OAO "IDGC of Urals" as of 2008 and 2009.^[2]

^[1] OAO "IDGC of Urals" is a non-exporting company which earnings are nominated in Russian rubles. Therefore, due to 2009 ruble devaluation, 2009 earnings in US dollar terms are less than 2008 ones, though in ruble terms they increased.

^[2] For better comparison here and henceforth financial and economical figures as of 2008 are calculated as the sum of the results by managing company OAO "IDGC of Urals" and OAO "Permenergo", OAO "Sverdlovenergo", OAO "Chelyabenergo".

^[3] EBITDA is calculated according to the following formula: net profit + income tax and other obligatory payments + interest payable + depreciation and amortization.

* Here and henceforth currency conversions are based on average exchange rates: 2009 - RUR 31.77, 2008 - RUR 24.9.

Table 2. 2009 Operating Results:

­­­­­Valery RODIN, the Company's CEO, commented: "2009 was a check-out period for the Company in terms of efficiency under severe economic environment. The Urals region was among the regions mostly affected by economic recession that caused a significant decrease of energy consumption. In this severe environment the Company's management focused its efforts on internal resource generation and cost saving, meanwhile ensuring required supply reliability and investment program execution. Energy supply in 2009 totaled 75.8 bln. kWh (-10.5 bln. kWh or -12% on 2008) that is greatly influenced by economic recession and energy consumption decrease by large industrial  consumers (metallurgy and machine-building). Despite it, overall 2009 revenues totaled US$ 1.3 bln., net profit - US$ 33.2 mln. These positive results were achieved due to a range of measures aimed at increasing the Company's efficiency, including the switch-over of repair, metering and IT services onto non-contracted form".

More detailed information on the Company's financial and operating results can be found here (pdf, 268 kb).

For 2009 accounting statements prepared under Russian Accounting Standards (RAS), please, visit our corporate web-site at "Financial Statements" section (or follow the link: www.mrsk-ural.ru/ru/672).

ОАО "IDGC of Urals"(est. in February 2005) is the main service provider responsible for energy transportation and technological connection of consumers to electric networks in Sverdlovsk, Chelyabinsk and Perm regions.

Electric network reform process in the Urals came to an end in April, 2008, and since May 1, 2008 ОАО "IDGC of Urals" is a united operating company exercising control over 3 regional subsidiaries (Sverdlovenergo, Chelyabenergo and Permenergo) as well as 3 core-asset affiliated companies (ОАО "Ekaterinburg Electric Grid Company", ОАО "Ekaterinburgenergosbyt").

As of 2009 the revenues from services totaled RUR 41.3 bln., net profit reached RUR 1.11bln (under RAS). Overall energy supply in 2009 amounted to 75.8 bln. kWh, productive supply totaled 69.3 bln. kWh, energy losses reached 6.5 bln. kWh.

Common shares are traded on MICEX and in RTS in quotation lists "B". Free float is about 20%. In December, 2009 Consortium "RID-Expert RA" assigned us Corporate Governance rating at level "6+".

For additional information on the Company, please, visit our corporate web-site at www.mrsk-ural.ru, as well as Complex Information Disclosure System (www.skin.ru), Interfax (www.interfax.ru), AKM (www.akm.ru).

IR Department

Tel./ Fax: (343) 215 26 58/ 215 25 84