Inter RAO YEES : Group's Suppliers of Last Resort Announce RAS Financial Results for the First 9 Months of 2016

* Reports are available for the following sales subsidiaries with the status of supplier of last resort: Moscow Energy Sales Company, St. Petersburg Energy Sales Company, Saratovenergo, Altai Energy Sales Company, Tomsk Energy Sales Company and Tambov Energy Sales Company

The following factors affected operating and financial results of suppliers of last resort within Inter RAO Group:

• New power supply agreements with commercial and residential consumers in new communities, and transition of customers from third parties
• Higher average air temperatures in the winter of 2016 and lower average air temperatures in May-June, 2016 compared to the same periods of the previous year
• Regulatory increases of residential electricity rates on July 1, 2015 and July 1, 2016
• Higher grid operator rates in the regions of the Group's suppliers of last resort due to the indexation of electricity transmission tariffs
• Higher average cost of purchased capacity due to capacity price increases in the more expensive WECM sectors
• Development of Value-Added Services (VAS) Segment

Operating and financial results of suppliers of last resort:

Indicator	Moscow Energy Sales Company		PSC		Saratovenergo		Altai Energy Sales Company		Tomsk Energy Sales Company		Tambov ESC
	9 months of 2016	Change 9M-on-9M	9 months of 2016	Change 9M-on-9M	9 months of 2016	Change 9M-on-9M	9 months of 2016	Change 9M-on-9M	9 months of 2016	Change 9M-on-9M	9 months of 2016	Change 9M-on-9M
Revenue	207.7	10.3%	82.4	21.6%	13.3	9.1%	9.0	4.1%	9.7	2.9%	3.6	13.5%
Operating expenses	205.1	10.0%	81.4	20.3%	12.9	8.7%	9.0	5.9%	9.4	6.7%	3.6	15.3%
Profit (loss) from sales	2.6	40.9%	0.9	18x	0.3	25.3%	0.03	(80.7%)	0.2	(57.0%)	(0.02)	-
Net income/(loss)	0.2	(67.4%)	1.3	16x	0.01	83.2%	(0.02)	5.4%	0.001	(12.2%)	(0.01)	-
Electricity sales by volume, billion kWh	60.8	0.4%	25.7	0.9%	4.5	(1.2%)	3.1	(7.6%)	4.0	(3.0%)	1.1	3.1%

* Billion rubles unless indicated otherwise

For more details on RAS operating results of the sales subsidiaries of Inter RAO Group that are suppliers of last resort for the first 9 months of 2016, please visit their official websites:

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Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business. The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and Russia's leading electric utility by energy efficiency. Inter RAO Group owns and operates approximately 32.5 GW of installed power generation capacity.www.interrao.ru