EOS Russia to list on First North, operated by the Stockholm Stock Exchange

EOS Russia, a newly-founded investment company headquartered in Stockholm, intends to list on First North, a marketplace operated by the Stockholm Stock Exchange. An attractive Russian power generation portfolio and an experienced management team position EOS Russia to benefit from the revaluation potential in the Russian power sector.

EOS Russia was founded in order to capitalise on investment opportunities arising as a result of the deregulation and privatisation of the Russian electric power sector. A comprehensive reform programme is gradually being implemented until 2012, affecting all elements of the sector: structure, ownership and pricing. The reason for the reform is the considerable investment need that has emerged as a result of regulated prices and rapidly increasing electricity demand.

“We expect the market price of electricity to at least double, compared to the current regulated level. During the next five-year period, we are confident there will be a major revaluation of Russian utility assets,” says Sven Thorngren, co-founder and CEO of EOS Russia.

EOS Russia’s single largest holding is a stake in UES, Russia’s largest utility holding company, which is state-controlled. The planned liquidation and break-up of UES in mid-2008 will lead to the privatisation of the bulk of Russian power generating capacity based on coal and gas. UES shareholders will receive pro-rata stakes in the underlying companies. The companies currently controlled by UES have a higher value as independent entities than as part of the UES holding company structure.

The three founders - Seppo Remes, Sven Thorngren and Lauri Sillantaka - have considerable experience from the Russian power sector. Seppo Remes, chairman of the Board of EOS Russia, is a member of the UES Board of Directors as well as a former member of the Board of Vostok Nafta. He has also served as CEO of Vostok Energo. Sven Thorngren, CEO of EOS Russia, previously held a Senior Equity Sales position at Troika Dialog and has also served as Sales Director at East Capital. Lauri Sillantaka, Head of Research at EOS Russia, was previously Head of Research at Troika Dialog, Senior Utilities Analyst at Troika Dialog and Utilities Analyst at Carnegie Finland. EOS Russia’s Board of Directors consists of Morten Ahlström, Pontus Lesse, Seppo Remes, Paul Swigart, Sven Thorngren and Marc Winer.

A number of institutional investors, including Fortum, Robur, Stena Finans, Skrindan, DWS and Varma, have invested a total of SEK 1.3 billion in EOS Russia through a private placement in May 2007.

An offer to acquire shares in EOS Russia will be announced today, May 21, 2007. The prospectus is available at www.eos-russia.com.


ENCLOSURE

The Offer
The Company’s shares will start trading on First North, a marketplace operated by the Stockholm Stock Exchange, as of 25 June 2007, provided that the share spread requirement is fulfilled. It is the Board’s ambition to later apply for a listing on the Nordic List.

 The offer consists of 4,000,000 newly-issued shares. Should the demand be greater than expected, the Board may decide to issue an additional 2,000,000 newly-issued shares. Regardless of demand, the Company reserves the right to limit the issue to a lesser number of shares.
 The price per share will be determined through a bidding procedure in the interval of 100 – 104 percent of the net asset value per share on 12 June 2007. The Company reserves however, the right to complete the offer at a price lower than 100 percent of the net asset value on 12 June 2007. On 11 May 2007, the net asset value per share was SEK 98.25.
 A trading lot is 50 shares. All shares are of the same class. No commission is charged.
 With an issue of 4,000,000 shares, EOS will be provided with issue proceeds of a minimum of SEK 393 million and a maximum of SEK 409 million before issue costs, based on the net asset value on 11 may 2007.

The purpose of the offer is to raise additional capital to implement the Company’s investment strategy and to diversify the Company’s shareholder structure and thereby assure good share liquidity. In addition, the offer will create attractive investment exposure toward the Russian power sector in connection with the ongoing reform.

Financial advisor to EOS and Lead Manager for the offer is HQ Bank. Mandatum is Senior Co-Manager and Avanza is Co-Manager. Vinge is the legal advisor to EOS.

Timetable
Application period: 28 May – 12 June 2007
Estimated date for announcement of the outcome
of the offer and the final price: 18 June 2007
Final payment: 21 June 2007
Estimated first day of trading in interim shares: 25 June 2007

The prospectus regarding the offer and trading of shares on First North is available on EOS’ Web site (www.eos-russia.com), HQ Bank’s Web site (www.hq.se) and Avanza’s Web site (www.avanza.se).

The prospectus is also available without charge in hardcopy from EOS and HQ Bank (Norrlandsgatan 15 D, Stockholm) and may be ordered by telephone: +46-8-700 0099.

Application for subscription of shares in the offer is made in accordance with the instructions in the prospectus.

Stockholm 21 May 2007
EOS Russia

For further information, please contact
Sven Thorngren, CEO: +46 70 517 0660



The offer pursuant to this press release does not extend to private investors in countries other than Sweden. The offer does not extend to parties whose participation requires prospectuses, registration or other actions beyond those specified by Swedish law. Neither the prospectus nor the application form may be distributed in any country where distribution or the offer requires action described above or violate regulations of said country. Application concerning acquisition of shares in violation of the above may be declared null and void. The shares covered by the offer pursuant to the prospectus have not been, and will not be, registered under the 1933 United States Securities Act (the ”Securities Act”) or the law of any Canadian province and may not be offered or sold, whether directly or indirectly, within the United States or Canada or to parties domiciled there other than under extraordinary circumstances that do not require registration under the Securities Act or the law of any Canadian province.