NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA OR JAPAN - EOS Russia to offer share issues in kind and cash to institutional investors

EOS Russia (EOS) to offer institutional investors share issues in kind and cash before the break-up of UES. EOS targets a listing of its shares on OMX - Nordic Exchange in May.

During April and May 2008 EOS intends to offer its ordinary shares in multiple private placements to institutional investors in and outside Sweden. EOS expects to offer up to 84.5 million new shares in the course of the private placement program. The minimum offering price will be EOS’ Daily NAV at the time of each placement for in kind issues (shares, GDRs and ADRs of UES) and a premium to that of at least 1% for investors participating with cash. The final price is to be set by EOS’ board of directors at the day of the respective private placements, taking into account EOS’ traded share price. The proceeds of these private placements will be used to buy UES shares in advance of the break-up of UES scheduled for July 1st this year.

EOS’ shares are currently traded on First North (a marketplace operated by OMX Nordic Exchange). EOS intends to seek admission for its shares to be listed on OMX Nordic Exchange and if EOS’ listing application is approved in the timetable currently envisaged, this is expected to occur in May 2008.

EOS has appointed Carnegie Investment Bank AB and Troika Dialog as Joint Global Coordinators and Joint Bookrunners of the offering.

“Ahead of the break-up of UES, we are seeking to grow EOS as large as possible in order to realize two main objectives. For EOS to become an attractive way to gain exposure to the Russian utility reform for large institutional investors, our liquidity needs to be improved. More importantly, we wish to leverage the benefits of becoming an even more sizable shareholder in UES before the break-up, increasing our influence and negotiating power in the investments and divestments that will follow,” says Sven Thorngren, CEO of EOS.

EOS Russia is an investment company headquartered in Stockholm. The overall objective of the company is to offer attractive returns via investments in the Russian utility sector. EOS Russia’s shares have been listed on First North, a marketplace operated by the OMX Nordic Exchange, since 25 June 2007.

Stockholm, March 31, 2008

EOS Russia

For further information, please contact:

Sven Thorngren, CEO: +46 (0) 8 407 31 50

Ann-Sofi Jönsson, Investor Relations: +46 (0) 8 407 31 50

This communication is not an offer for sale of securities in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the Securities Act) and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. Any public offering of securities will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The company will not be conducting a public offering in the United States.

This communication is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together with Qualified Investors being referred to as relevant persons). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.