Mechel reports its production results for 2004

Mechel reports its production results for 2004

Moscow, Russia — February 28, 2005 — Mechel increased output of its core products in 2004 as compared to the same period last year. Significant growth has been achieved in coal and rolled steel production — by 10.3% and 20.9%, respectively.

Product 2004, thousand tons 2004 as compared to 2003, %
Coal 15,644 + 10.3
 
Coking coal 9,363 + 8.3
 
Steam coal 6,281 + 13.6
 
Iron ore concentrate 3,876 + 10.4
 
Nickel 12.7 - 5.9
 
Coke 2,942 + 12.4
 
Pig iron 3,880 + 23.1
 
Steel* 6,196 + 16.6
 
Rolled products* 4,937 + 20.9
 
Hardware* 592.7 + 27.1

 

* All production information is presented in this press release for the full calendar periods of 2003 and 2004 as if all Mechel's subsidiaries as of December 31, 2004, were consolidated for such periods. Mechel's consolidated output of steel, rolled products and hardware in 2004 from the date of actual acquisition of the controlling stake in Izhstal, Mechel Nemunas and Mechel Campia Turzii, i.e. from May 2004, October 2003 and June 2003, respectively, is as follows: 6,070.6 thousand tons of steel, 4,911 thousand tons of rolled products, 565.5 thousand tons of hardware, which represents increases of 26.1%, 25.9% and 44.5%, respectively, as compared to 2003.

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Mechel Steel Group 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 Steel Group is one of the leading Russian metals and mining companies.  Mechel Steel Group unites producers of steel, rolled products, hardware, coal, iron ore concentrate, and nickel.  Mechel Steel Group 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.