Energy Ministry Approves FedGrid 2012-2014 InvProg

Energy Ministry Approves Federal Grid 2012-2014 Investment Programme

Moscow, 17 May 2012- Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company") (MICEX-RTS, LSE: FEES), announces that on 11 May 2012 the Russian Ministry of Energy approved Federal Grid Company's investment programme for 2012-2014. The approved plan entails investments totalling RUB 504.8 billion into the commissioning of 50,368 MVA of new transformer capacity and 13,147 kilometres of new transmission lines.

In 2012 Federal Grid Company plans to invest RUB 195.6 billion into projects entailingthe construction, renovation and overhaul of elements of the unified national energy grid (UNEG).

Federal Grid Company plans to bring 4,371 kilometres of transmission lines and 14,874 MVAof capacity online this year. Investments will focus on increasing the reliability of the UNEG, renovation of elements of the grid, introducing innovative and energy-saving technologies, expansion of high-voltage transmission lines in Russia's regions and connecting new generating capacity to the grid. The Company will also continue investments in key strategic projects, including provision of uninterrupted power supply to the Eastern Siberia-Pacific Ocean pipeline, the APAC-2012 Summit in Vladivostok and the 2014 Winter Olympics in Sochi, as well as enhancing the reliability of the power supply to Moscow, St. Petersburg and the Tyumen oblast.

The Federal Grid Company 2012-2014 investment program as approved Ministry of Energy will be reviewed by the Company's management and Board of Directors in the nearest future and is available in Russian online at: http://www.fsk-ees.ru/investments/the_three_year_investment_program/.

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About Federal Grid Company

Federal Grid Company is the operator and manager of Russia's unified electricity transmission grid system, including high voltage transmission lines, and holds the status of a natural monopoly.

The Company's assets include over 124,000 km of transmission lines and 854 substations with over 322 GVA of 35-750 volt transformer capacity. Based on the length of transmission lines and installed transformer capacity, 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 in 73 regions of Russia, covering a territory of 13.6 million square kilometres. Its customers are regional distribution companies, electricity suppliers and large industrial enterprises.

Since 1 January 2010, Federal Grid has operated under a 5-year regulatory asset base (RAB) model.

The Company was incorporated in June 2002 as part of reorganisation of Russia's electrical power industry. The largest shareholder, with a 79.55% stake, is the Russian Federation Government.

Federal Grid Company's ordinary shares are listed on the MICEX-RTS stock exchange underthe ticker FEES and the Company's GDRs are traded on the London Stock Exchange under the same FEES symbol. The Company's shares are included in the MSCI Emerging Markets and MSCI Russia indices.

In 2011 the Company's IFRS revenue for 2011 was RUB 139,571 million (up 23% compared to 2010), adjusted EBITDA as RUB 83,760 million (a 24% increase from 2010), and adjusted net profit was RUB 38,241 million (up 37% on 2010).

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