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JSC IDGC Holding to hold its meeting of shareholders December 28 to decide on 33,560,278,868 authorized shares

14.12.2009
IR release. JSC IDGC Holding to hold its meeting of shareholders December 28 to decide on 33,560,278,868 authorized shares.

The Extraordinary General Meeting of Shareholders of JSC IDGC Holding will be held in the form of a meeting with absentee voting on December 28, 2009. Shareholders are invited to decide on two issues:

1. Determination of the quantity, par value, category (type) of authorized shares and rights attaching thereto.

2. Approval of amendments and supplements to the Articles of Association of the Company.

If the decisions on the above-mentioned issues are approved, JSC IDGC Holding will be able in the future to issue its shares as necessary without holding any additional meetings of its shareholders for determining the quantity of authorized shares and amending JSC IDGC Holding’s Articles of Association accordingly. This would reduce the duration of corporate procedures required for increasing the authorized capital and cut related costs.

Specifically, if adopted, these decisions will enable the company to issue its shares in 2010–2013 in order to obtain budget funds for the construction and rehabilitation of Sochi 2014 Winter Olympics sites.

The following parameters were used to determine the quantity of authorized shares proposed in the draft decision of the meeting of shareholders:

- anticipated budget financing of more than 18 billion rubles from 2010 to 2013;

- public offering as the proposed placement method;

- government participation by virtue of its preemptive right;

- offering price of 1 ruble (par value of one share).1

Decisions on any increase in the authorized capital and on the increase parameters (including the offering price) will be made in the relevant years.
1 This price was for calculation purposes. When the parameters of each share issue are established, the offering price will be as close as possible to the market price.

For information
Pursuant to Resolution of the Government of the Russian Federation No. 613 of July 27, 2009, JSC IDGC Holding is responsibly in charge of the rehabilitation and construction of eight Olympic Games sites. It is planned that these sites will be partly financed from federal budget funds. The Federal Budget Law signed by the President on December 2, 2009, provides that 4,376,500 thousand Russian rubles of budget funds be funneled to the authorized capital of JSC IDGC Holding in 2010 to finance the construction of Olympic facilities.

Yours faithfully,
IR Service, JSC IDGC Holding

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