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VOLGA HYDRO POWER CASCADE IMPLEMENTS MAXIMO® TO IMPROVE EFFICIENCY, RELIABILITY AND OUTPUT AT 9 POWER STATIONS
Strategic Asset Management Solution Expected to Help Reduce Cost per kWh and Improve Competitive Position

BEDFORD, Mass., and MOSCOW, May 31, 2005 MRO Software, Inc. (Nasdaq: MROI), the leading provider of strategic asset and service management solutions,- and Bellwood Systems, MRO Software's official partner for Russia and the CIS region, today announced that seven of Volga Hydro Power Cascade's nine hydro power stations have gone live with Maximo®, MRO Software's strategic asset management solution.

The pilot station, Votkinskaya GES, completed its Maximo® implementation in December 2004. Since then six other sites within Volga Hydro Power Cascade have gone live with Maximo® including: Volzhskaya, Zhigulevskaya, Kamskaya, Saratovskaya, Rybinskaya and Uglichskaya hydro power stations. Bellwood Systems is implementing Maximo® at Cascade in cooperation with its solutions partner Sovremennye Tekhnologii. The whole project is scheduled to be completed in 2006.

The implementation of Maximo® is the cornerstone of a wider initiative to improve the competitiveness of Cascade's eight power stations. This initiative includes streamlining and optimizing all business processes related to the management of the stations' key assets, such as equipment maintenance, inspections, condition monitoring, inventory, purchasing and work planning. Maximo® was selected from six leading global and Russian EAM vendors.

"The efficient management and maintenance of production assets are the key focus of operations in our industry sector. Therefore, applying world-class best practices for asset management is vital in achieving the Cascade's strategic goals," says Garald Bandurin, VHPC's Director of Information Technologies.

The deployment of Maximo® is expected to generate a number of benefits. With Maximo® deployed, Volga Hydro Power Cascade expects to improve its ability to develop, implement and maintain optimal asset management strategies and tactics, resulting in improved equipment reliability, availability and life span. Having the ability to track and optimize all asset-related costs should result in reduced cost per kWh of energy produced. Comprehensive data capture, Key Performance Indicators and reporting will offer improved transparency of key business processes and associated costs for management and investors. Automated and documented work procedures will lead to improved work efficiency and knowledge management. And transparency of parts and materials across all Cascade's inventory stores will result in optimized stock levels.

"It became apparent that MRO Software's offering best suits the needs of the Russian power generation industry, as well as the strategic goals of reforming the country's energy system set by RAO UES of Russia." Mr. Bandurin continued: "The product's functional completeness, flexibility and technological leadership, acclaimed by Gartner Group and other leading analysts, should allow us to fully meet the strategic asset management demands at our organization for the years to come. In addition, the proven implementation methodology is expected to help us realize benefits rapidly. Other important factors in selecting Maximo® were the robust 24x7 'follow the sun' support policy, and presence in Russia through MRO Software's experienced local partner and authorized reseller, Bellwood Systems."

"Success of the first implementation of Maximo® in Russian hydro energy sector and the remarkable growth of interest in Russia to EAM solutions makes us believe that Maximo® will be very successful among other Russian asset-intensive enterprises and industry sectors," said Sergei Sevriugin, a member of Bellwood Systems' Board of Directors.

"We're pleased to be working with Bellwood to help improve the efficiency and competitive position of Russian power generating facilities like the Volga Hydro Power Cascade project," said Johan Arts, vice president industry marketing at MRO Software. "VHPC joins a number of other hydro generation projects managed with Maximo® that produce nearly 60,000 megawatts of electric power. On a global basis, we find Maximo® brings benefits of improved maintenance effectiveness and equipment reliability to all forms of power generation whether it be fossil, hydro, nuclear or wind."

About Managing Company of the Volga Hydro Power Cascade
Managing Company of the Volga Hydro Power Cascade (MC VHPC) was formed in 2001 by decision of the Board of Directors of Unified Energy System of Russia (RAO UESR) and is a wholly-owned subsidiary of RAO UESR. The main objective of MC VHPC is to represent a single, centralized management organization for the cascade of hydro power stations at Russia's Volga and Kama rivers. The company has eight power stations under its management, with total energy output of 8404 MW.

VHPC and its managed power stations are subsidiaries of RAO UESR (Russian Joint Stock Company - Unified Energy System of Russia), one of the world's largest utilities. RAO UESR's technical base consists of 440 electric power stations with total installed capacity of over 197 thousand MW, including 21 thousand MW at nuclear power stations, which produce 787 billion kWh of power a year. Additional information on MC VHPC can be found at www.vohec.ru.

About Bellwood Systems
Bellwood Systems is an IT solutions company founded in 2001 and specializing in system integration and information system implementation. Being MRO Software's official Master Reseller for Russia and CIS, Bellwood Systems is the leading IT solutions provider offering Maximo® software and Maximo®-based EAM solutions in the Russian market. Additional information on Bellwood Systems can be found at www.bellwood.ru.

About MRO Software, Inc.
MRO Software is the leading provider of strategic asset management solutions. The Company's integrated suite of applications optimizes performance, improves productivity and service levels and enables asset-related sourcing and procurement across the entire spectrum of strategic assets.

The Company's asset management solutions allow customers to manage the complete lifecycle of strategic assets including: planning, procurement, deployment, tracking, maintenance and retirement. Using MRO Software's solutions customers improve production reliability, labor efficiency, material optimization, software license compliance, lease management, warranty and service management and provisioning across the asset base.

MRO Software (Nasdaq: MROI) is a global company based in Bedford, Mass., with approximately 900 employees, 10,000 customers and more than 260,000 end-users. The Company markets its products through a direct sales organization in combination with a network of international distributors. MRO Software has sales offices throughout North America, Europe, Asia/Pacific and Latin America. Additional information on MRO Software can be found at http://www.ibm.com.

 
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