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EMAlliance JSC Internal Meeting of the Board of Directors

September 15, 2005: EMAlliance JSC Internal Meeting of the Board of Directors was held with production and economic activities of the holding, its development and cooperation expectations being the issues of the agenda. The meeting was chaired by Mr. Tugolukov, President of the Board of Directors. Official representatives of EMAlliance member companies - Taganrog Boiler Factory Krasny Kotelshchik, The Machine-Building Plant ZiO-Podolsk, Engineering Company ZiOMar were also present.

Krasny Kotelshchik reported on performing and processing the order of equipments produced for Barh Super Thermal Power Project (India), and on the first stage of the start of production. Representatives of Krasny Kotelshchik informed the Board that an addendum to the agreement between Federal State Unitary Enterprise Technopromexport and Krasny Kotelshchik was signed on August 26, 2005. It covers an additional order of three boilers with capacity 2,225 tons/hour for the Indian customer. The cost of boilers exported under agreement exceeds 150 million US Dollars. Krasny Kotelshchik started design works that are planned to be realized in 2005-2006, leads negotiations with Technopromexport on contenders for delivery of auxiliary equipments for boilers, and continues coordination of products with Indian State Boiler Inspection.

The Board of Directors also discussed the cooperation between EMAlliance JSC and Alstom Corporation. ALSTOM is one of the three world leaders in power-generation engineering, alongside with General Electrics and Siemens, and is the major manufacturer of power-generation equipment in Europe. Workgroups of EMAlliance JSC and ALSTOM specialists have been created in accordance with conditions of General Agreement and Memorandum of Understanding signed in August 2005. The task of these workgroups is inspection of businesses that need coordination by two holdings, and planning of mutual projects. EMAlliance Board of Directors stated that cooperation with ALSTOM's member companies on mutually beneficial conditions is essential to successful development of EMAlliance JSC.

The EMAlliance Holding are: The Machine-Building Plant ZiO-Podolsk, ZiOMar Engineering, Taganrog Krasny Kotelshchik Factory and other companies. EMAlliance JSC is one of the largest machine-building companies in Russia, with international experience and references in sales, engineering and design of equipments for thermal energy, oil and gas companies, and atomic energy. The holding's member companies employ more than 14,000 persons.