Updated April 9, 2008

   OJSC E4 Group that specializes in energy audit and services

in the industrial and energy construction, declared about the purchase of 100% Closed JSC ITS that renders IT-services in the energy area. The market participants mark that the specialized IT- companies are in high demand in terms of RAO UES of Russia restructuring that has given the impulse to IT-projects development.

   OJSC E4 Group has purchased 100% of CJSC ITS.

This information was confirmed in the seller press-service – OJSC Novosibirskenergo.

Chairman of E4 Group board Mikhail Abyzov did not expose the transaction sum, but marked that

the purchase would allow extending considerably the range of the Holding services.

"Industrial automation, engineering support and system integration are the most perspective directions now.

Therefore, our company considers necessary to enter the IT-services market", Mr. Abyzov explained. According to him, ITS would work not only with the E4 Group internal projects, but with the external customers also.

   OJSC E4 Group is the largest engineering company of Russia.

It comprises 13 holding companies.

And the aggregate amount of productive assets totals more than 50 enterprises. The company numbers more than 17 000 employees.

The holding profit totaled $1,16 billion 2007.

   CJSC ITS (Information technologies and connection) is one of the largest IT-companies of the Siberian Federal District. The company specializes in render

ing IT-services in the energy area. According to E4 Group data, ITS profit totaled $19 million in 2007, EBITDA was $744 000, the net income was $262 000.

   Finam Investment Company estimated the transaction at $13-15 million judging by ITS financial indices. The market participants suppose that the sum is small to enter

the perspective IT-services market in the energy area. "The majority of system integrators develop IT-expertise in the energy area now. For example, at the beginning of the month Systematic Company declared about the consolidation of the analogical company – Ensys Technologies", says Verysell Generating Company president Mikhail Krasnov.

According to him, the market demand grows in terms of restructuring of RAO UES of Russia and all power energy sector on the whole that has received the significant investments now. According to the statement of the Minister of Industry and Energy Viktor Khristenko made earlier, the industry investment program by 2010 was estimated at RUR 3,1 trillion.

Generating companies have already attracted RUR 500 billion due to stocks offerings and part of assets sale.

And this figure should double by July, 1, 2008.

According to the data of Cnews Analytics reporting, in 2006 the investments increase to the fixed assets in the energy industry was 14%, while the expenditures increase on IT-services totaled 40,1%, on software – 91,3%. "In terms of this we also plan to extend the current expertise in

the energy area. We hold negotiations now about the company purchase that specializes in IT-consult

ing in the energy area. If the transaction took place, it would allow to increase our stake at the IT-services market in this area", Mr. Krasnov added.

   Armada IT-company director general Alexey Kuzovkin also assumes to spend the part from the $100 million attracted credits to purchase the companies specializing in

the IT-expertise of the energy area. RAO UES of Russia reform became the locomotive of IT-services market in the energy area in 2006, considers Optima IT-holding director for strategic development Timur Rakhimi. According to him, now the IT-services market in the energy area grows by 35-40% a year, when the growth of all IT-market totals around 18%. "IT-services add from 5% to 10% on the average a year regardless of hardware supplies and software sales in the different industry segments, while the energy area grows 35-40% quicker. About 15 percent points from these 30-35% givers just the RAO UES reform, as said Mr.

Rakhimi. According to Optima data, the volume of IT-market in the energy area totaled around $1 billion in 2007, and around $250 million fell to the IT-services. "By 2011 we expect the $3,5 billion and $1 billion indices respectively", Mr. Rakhimi concluded.