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Federal Tariff Service of Russia Approved the Parameters of Investment Component for RusHydro for 2011

JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that the Federal Tariff Service of Russia (FST) has issued a decree that sets new parameters of tariff component (investment mark-up) to be included in capacity payments for RusHydro in 2011. Their total amount is RUR 12,905,559 thousand.

The document was issued in compliance with the decree of the Government of the Russian Federation No. 1172 (from December 27, 2010) on the rules of the wholesale electricity and capacity market in Russia and is effective as of June 1, 2011.

According to the current wholesale market rules the investment mark-up for 2011 should be added to capacity payments, established following the results of competitive capacity auction, and only for power generating facilities located in the first price zone of Russia (Europe and Urals). The amount of the component is RUR 89,538.13/MW per month.

The proceeds from this mark-up to tariffs are necessary to ensure the safe operation of hydropower plants and pumped storage plants as well as financing their investments needs.

FST will issue a separate decision on the amount of the investment component for 2012.

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.
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