Mechel announces changes in its management structure

Mechel announces changes in its management structure

Moscow, Russia – February 22, 2005 – Mechel announces the appointment of
Boris Nikishichev as Senior Vice President–Mining.

Boris Nikishichev will head the Mining Department, established in line with Mechel’s strategy to continue strengthening its mining business. He will focus on Mechel's mining strategy and development, and further expansion.

“We are proud that such a respected and prominent specialist with over 35 years in the mining industry will work for Mechel. The appointment of Dr. Nikishichev reflects the importance of Mechel's mining segment in its business structure”, Mechel’s CEO, Vladimir Iorich, said.

Mechel internally sources all of its needs in coal, as well as most of its iron ore and nickel requirements. It is the second largest producer of coking coal in Russia, and sells approximately 60% of its coking coal production to third parties.

Biography:
Boris G. Nikishichev

2004-2005 – Deputy General Director, Raspadskaya Coal Company ZAO.
1999-2004 – First Vice President, Mining Industrialists of Russia Non-Commercial Partnership.
1998-2004 – First Vice President, Sokolovskaya Holding Company.
1993-1999 – Deputy General Director for Long-Term Development and Capital Construction, Vice President/Director for Restructuring of Coal Production, Russian Coal Company ZAO.
1991-1993 – First Deputy President of the Management Board, Russia's Coal Corporation.
1970-1990 – Executive positions at YuzhKuzbassUgol United Coalmining Company.
Boris Nikishichev holds a Doctorate in Mining Production.

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

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

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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 conditions.