The position of the Company's Auditor was established at the Annual general meeting of shareholders as of 10.06.2011

The order of the issuer's auditor choice:

The nominee of the auditor of the emitter is defined as a result of Competitive selection. To take part in the competition the auditing organizations were to meet the following requirements:

* not to be in the process of liquidation;

*  not to have the decision concerning their activity termination, stipulated by the Code of the Russian Federation on the administrative law, on the day of the contest application consideration;

* not to have debts on accrued taxes, dues and fees and other compulsory payments to the budgets of any level to the public non-budget funds for the past calendar year, which amount outnumbers twenty five percent of the balance cost of the assets of the participant according to the accounting report data for the preceding accounting period. The participant of the placed order meets the mentioned requirement if he appeals against the presence of the abovementioned debt in accordance with the legislation of the Russian Federation and the decision concerning such an appeal for the day of the contest application consideration was not adopted;

* do not come within conditions (in relation to the Company and subsidiaries and dependent companies of Holding IDGC, JSC), enumerated in paragraph 1 of article 12 of the Federal Law as of August 7, 2001 No. 119-Federal Law "On auditor activity."

 Procedure of promotion of a nominee of the auditor for the approval by the meeting of shareholders, including, the controls, making the corresponding decision.

By results of Competitive selection the Board of directors of the Company recommends a corresponding nominee of the auditor for the approval by the General meeting of shareholders of the Company.

The auditor of the emitter carries out check of financial and economic activity of the emitter in accordance with the requirements of the legislation of the Russian Federation on the basis of the contract concluded with it.

The amount of payment for the Auditor service, approved by the Annual general meeting of shareholders for the mandatory annual check-up and the approval of the annual financial reporting of the issuer, id determined and approved by the Company's Board of Directors in accordance with paragraph 24.9 of article 24 and subparagraph 14, paragraph 15.1 of Article 15 of the Company's Charter.