SECURITIES PROSPECTUS

Procedure for the Selection of Auditor by the IssuerBidding process related to auditor selection and its key termsBy Order No. 36 of the Director General dated September 2, 2008, JSC IDGC Holdingestablished a permanent commission for organizing procurements in the field of corporate, legaland property relations (hereinafter the "Commission") and approved the CommissionRegulations.The roles of the Commission include approving the methods and procedures forprocuring services in the field of corporate, legal and property relations, organizing andconducting procurement procedures, forming criteria for assessing submitted requests andidentifying the winner in accordance with the approved procedures.When selecting the auditor for the provision of services related to the independent auditof the initial accounting statements of JSC IDGC Holding and the verification of informationcontained in the securities prospectus of JSC IDGC Holding, the Commission used the methodof public request for proposals.Based on the submitted proposals, the winner in the public request for proposals for theexecution of agreement with JSC IDGC Holding for the provision of auditing services related tothe independent audit of the initial accounting statements of JSC IDGC Holding (including thesubmission of auditors' report) and the verification of information contained in the securitiesprospectus of JSC IDGC Holding as to its compliance in all material respects with the auditedinformation from financial (accounting) statements was ZAO NP Consult.Procedure for submitting the auditor candidate for approval by the meeting ofshareholders (participants), including the management body adopting the relevant decision.In accordance with Article 14.2 of the Articles of Association of JSC IDGC Holding theauditor of the Company is recommended by the Board of Directors of the Company for approvalby the General Meeting of Shareholders after bidding-based selection of auditing firms forconducting mandatory audits of the Company in accordance with the procedure approved by theBoard of Directors of the Company.The General Meeting of Shareholders approves the auditor (auditing firm) of theCompany.Information concerning work performed by the auditor as part of special engagements.Not applicable.Procedure for determining the amount of the auditor's fee, the actual amount of feepaid by the issuer (Company) to the auditor for each fiscal year or other reporting period forwhich the auditor conducted an independent audit of accounting records and financial(accounting) statements of the issuer (Company); information about deferred and past duepayments for the services provided by the auditor.In accordance with the Articles of Association the amount of the auditor's fee isdetermined by the Board of Directors of the Company. Service fee and the procedure forpayment for the auditor's services are specified in the agreement between the issuer and theauditor and calculated based on the time spent on the audit and the number of employeesinvolved in auditing the financial (accounting) statements of the issuer.The actual amount of fee paid by the issuer to the auditor for each fiscal year or otherreporting period for which the auditor conducted an independent audit of accounting recordsand financial (accounting) statements of the issuer:The actual amount of the auditor's fee for the provision of services related to theindependent audit of the initial accounting statements of JSC IDGC Holding and the verificationof information contained in the securities prospectus of JSC IDGC Holding as to its compliance13