Dividend Payment Procedure in 2011

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Dear Shareholders:

The Annual General Meeting of Shareholders of JSC IDGC Holding held on June 22, 2011, decided that dividends on ordinary shares shall not be paid and that dividends on preference shares based on performance results in 2010 shall be paid in the amount of 0.05 ruble per share. Dividends are paid out of the issuer’s funds.

In accordance with paragraph 8.5 of the Articles of Association of JSC IDGC Holding, the dividend payment period may not exceed sixty (60) days from the date of the decision to pay dividends.

If the last day of any dividend payment period falls on a nonbusiness day, then the immediately following business day shall be deemed to be the last day of such period. Therefore, the last day for dividend payment is August 22, 2011.

In accordance with the Regulations for Dividend Policy of JSC IDGC Holding, dividends shall be paid in cash. In accordance with Article 196 of the Civil Code of the Russian Federation, any accrued but unpaid dividends shall be stored for a period of 3 years. This period shall begin on the expiration date of the dividend payment period, i.e. August 22, 2011. No interest shall be charged on unclaimed dividends.

Dividends shall be deemed to be paid if the relevant amounts have been paid from JSC IDGC Holdings account to the bank account (postal address) contained in the shareholder register maintenance system.

Please note that registered persons questionnaires may contain any inaccurate or outdated details of shareholders and dividend payment methods. JSC IDGC Holding shall not be liable for any failure to perform its dividend payment obligations if the shareholder register fails to contain any registered persons accurate and complete details necessary to pay (transfer) dividends to such person.

In accordance with paragraph 7.2 of the Regulations for Keeping the Register of Holders of Registered Securities approved by Resolution of the Federal Commission for the Securities Market of the Russian Federation No. 27 of October 2, 1997, if any registered persons particulars are changed, the shareholder shall be obligated to furnish the registrar again with a fully completed registered person questionnaire and update in a timely manner the banking details used for dividend payment.

Please note that depositary clients also have the obligation to update in a timely manner their identity document data and the banking details used for dividend payment.

For the avoidance of any dividends failing to be paid, you are kindly requested alter your registered person questionnaire in a timely manner and update the banking details used for dividend payment.

In accordance with Article 43 of the Tax Code of the Russian Federation, any received dividends are considered to be an income and shall be subject to tax at a rate of 9%. Accrued dividends are paid to shareholders, less tax.

Individuals may receive 2NDFL individual income tax certificates from the Department for Business and Tax Accounting of JSC IDGC Holding after January 1, 2012.

Nonresidents eligible for any tax relief should make available supporting documents to JSC IDGC Holding before August 20, 2011. In the absence of documents bearing out tax relief, shareholders will pay 9% tax.

If you have any questions regarding nonresident taxation, please contact Ms. Tatiana Fedorova at +7 (495) 710-58-06.

Requirements applicable to documents in support of tax relief:


Annex 1: Recipient of Dividend Income from JSC IDGC Holding Shares – Foreign Organization.

Annex 2: Recipient of Dividend Income from JSC IDGC Holding Shares Held by Mutual Funds.

Annex 3: Recipient of Dividend Income from JSC IDGC Holding Shares Foreign Individual.