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ISS Proxy Advisory Recommends Shareholders Vote in Favor of Resolutions at the AGM of RusHydro

JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that ISS Proxy Advisory Services, the leading independent provider of proxy advisory recommendations to institutional investors, has issued the report on June 14, 2011 in which it states its supports of the items on the agenda of the Annual General Meeting of shareholders of RusHydro to be held on June 30, 2011 and recommends shareholders vote in favor of all proposed resolutions.


In particular, on items 7 and 9 of the agenda - authorization to increase the share capital and issuance of shares - analysts from ISS noted that the proposed share capital increase and subsequent share placement would facilitate the company's asset consolidation and would strengthen the company's positions in Siberia and Russia's Far East region. Existing shareholders would have the right to participate in the share placement and would be granted preemptive rights. «This share issuance and the following asset swaps will most likely benefit the company in the long-run through access to the Chinese market and the creation of additional venues for future strategic projects», - concludes ISS in its report.


For item 11, which includes the approval of a number of related-party transactions, ISS commented that the share swap deals between RusHydro and Inter RAO UES, as well as transactions between RusHydro and VTB Bank do not appear to be controversial, and their pricing parameters do not infringe minority shareholders' rights.


Full details of the resolutions, including Board of Directors' recommendations, are available on the corporate website of RusHydro. Only shareholders registered as at May 23, 2011 can participate in the AGM.


Shareholders are reminded that the deadline for receipt of voting ballots (for local shares) is June 27, 2011 (to be received by Company's registrar - JSC R.O.S.T), for proxy votes of depositary receipts holders - June 22, 2011 (to be received by Bank of New York Mellon).




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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