Mechel announces attempts to prevent its participation in the MMK auction

Press Releases

Mechel announces attempts to prevent its participation in the MMK auction

Mechel Steel Group (NYSE: MTL) announces that a subdivision of the Ministry of Internal Affairs collected commercial information from its subsidiary, Mechel Trading House on December 6 and 7, 2004.

 

The company is certain that the events are the results of actions designed to prevent the participation of Mechel in the privatization auction of the government’s 23.8% stake in Magnitogorsk Iron and Steel Works, due to be held on December 22, 2004.

Mechel has protested the actions against the company, organized by potential bidders for the government’s stake in MMK, and will continue to avail itself of all legal avenues to defend its ability to participate in the auction.

The company notes that its conducts its business in accordance with all applicable legal norms.  All of its divisions continue to operate as usual.

***

Mechel Steel Group OAO
Irina Ostryakova
Director of Communications
Phone: 7-095-258-18-28
Fax: 7-095-258-18-38
E-mail:irina.ostryakova@mechel.com

***

Mechel Steel Group is a Russian metals and mining company, uniting producers of steel, rolled products, hardware, coal, iron ore concentrate, and nickel.  Mechel Steel Group 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 Steel Group, 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 Steel Group files from time to time with the U.S. Securities and Exchange Commission, including our Form F-1. 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 F-1, 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 con