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Mechel Reports Its Operational Results for the First Six Months of 2007

Posted on: Tuesday, 17 July 2007, 12:02 CDT

MOSCOW, July 17 /PRNewswire-FirstCall/ -- Mechel OAO , one of the leading Russian mining and metals companies, announced today its operational results for the first six months of 2007.

First six months First six months of of 2007, thousand 2007 vs. first six Product tonnes months of 2006, % Coal 8,870 +10 Coking coal 4,223 -6 Steam coal 4,647 +29 Iron ore concentrate 2,376 -1 Nickel 8.4 +20 Coke 1,935 +80 Pig iron 1,865 +8 Steel 2,987 +4 Rolled products 2,527 +11 Flat products 226 +17 Long products 1,534 +26 Commercial billets 768 -12 Forgings 42 +26 Stampings 50 -3 Hardware 336 +17

Mechel Management OOO Chief Executive Officer Vladimir Polin commented on the operational results for the first six months of 2007, "Mechel continued to improve output in both its mining and steel business segments in the first half of this year. The coal output increase was supported by the commissioning of our new mine, Olzherasskaya-Novaya, last year and by further operating efficiencies in our functioning mines and open pits. The iron ore concentrate output approximates last year's level, which is consistent with the designed capacity of Korshunov Mining Plant, our iron ore concentrate producer. We took maximum advantage of the favorable pricing conditions at the London Metal Exchange and increased our nickel production."

Mr. Polin added, "In our mining segment, we continued increasing the output of commercial value-added metal products. In our hardware segment we increased output of the products which are in demand on the market. In line with that effort, new equipment was commissioned at Beloretsk Metallurgical Plant to produce high-tensile stabilized reinforcing wire which is consumed in the construction industry. Finally, the increase we achieved in coke production was due to the acquisition of Moscow Coke and Gas Plant last year and the commissioning of the new coke battery at Chelyabinsk Metallurgical Plant."

Mechel is one of the leading Russian mining and metals companies. Mechel unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward- Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

Mechel OAO

CONTACT: Alexey Sotskov, Head of PR Department of Mechel OAO,+7-495-221-88-88, alexey.sotskov@mechel.com

Source: PRNewswire-FirstCall

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