Federal Grid Announces GDR Grace Period

Federal Grid Announces Share to GDR Conversion Grace Period

 13 September 2012, Moscow - Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company") (MICEX-RTS, LSE: FEES), announces that it has agreed with Deutsche Bank, its Global Depositary Receipt (GDR) depositary bank, to offer shareholders a 3-month grace period for the conversion of the Company's shares into GDRs.

The grace period will last from 17 September 2012 until 16 December 2012. During this time the conversion of ordinary shares into GDRs will take place free of charge.

 Federal Grid Company's First Deputy Chairman of the Management Board Andrey Kazachenkov said: "We are committed to supporting the liquidity of our GDRs, which have been listed on the London Stock Exchange since March 2011. Today we are announcing the launch of a grace period for the conversion of local shares into depositary receipts. We hope to see new investment funds among our GDR investors, which should help make Federal Grid Company an even more attractive investment case."

 Enquiries:

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 under the 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