The General Director of JSC "Severstal" Anatoly Kruchinin in his report at the meeting said that in terms of steel consumption and market prices dynamics the year 2003 exceeded the most optimistic expectations of analysts.

As a result, the volume of steel production in 2003 reached 9 million 888 thousand tons, 8 million 810 thousand tons of saleable rolled stock were produced. This is higher than 2002 indicators 1,1 and 3,2 percent accordingly.

The amount of capital investments in 2003 exceeded 7 billion roubles. 1 billion roubles were spent for expansion of production capacities, which is 34,5% more than last year in terms of completion.

By the results of 2003 performance the net profit increased 196 % compared to 2002 reaching 18 billion 800 million roubles.

The stockholders' meeting of the company approved the share dividends in the amount of 28 roubles per 1 equity share for the last year performance and 42 roubles per one equity share for the 1-st quarter of 2004 performance.

Speaking about the future plans of the company, Mr. Kruchinin said that production of rolled stock in 2003 will increase against last year by 5 % and will reach 9 million 250 thousand tons.

"Nevertheless, it must be taken into account, - emphasized Mr. A.Kruchinin, - that the last two years are characterized by 2-3 times increase of prices for the raw materials like iron ore pellets, coal and nonferrous scrap. Only for the fiscal year of 2003 the share of raw materials and fuel and energy resources costs increased up to 73,2 %. Today electric power prices are practically equal to the European level, the price of coal approaches imported coal price". Due to this and other objective reasons the most important work, according to Mr. A.Kruchinin, will be towards mobilization of internal resources, optimization of relations with external environment, suppliers and clients. In particular, implementation of power saving program in 2003 resulted in reduction of specific power consumption at JSC "Severstal" down to 6,41 ???? per ton of liquid steel (which is 2% less than at NLMK and 1% less than at ???). It is planned to reduce this parameter further by 2%.  Commissioning of the polymeric coating line in the 4-th quarter of the current year, and the beginning of start-up and adjustment of autosheet galvanizing line at "Severgal" are examples of activities to increase production of high value added products.

No major changes in the Board of Directors have taken place.

The Board of Directors is represented by the following persons:

• Mordashov Alexey Aleksandrovich - the General Director of Joint-Stock Company "Severstal-Group"
• Kruchinin Anatoly Nikolaevich - the General Director of JSC "Severstal"
• Andrianov Alexander Nikolaevich - Director of Finance and Economy "Severstal"
• Bykov Valery Pavlovich - expert of legal bureau "Centurion - M"
• Goroshkov Dmitry Jurjevich -Sales Director of JSC "Severstal"
• Zhuravlyov Igor Pavlovich - Chairman of JSC "Severstal" Trade-Union Committee
• Kostin Igor Yurievich - Strategic Planning Director of JSC "Severstal"
• Makhov Vadim Aleksandrovich - Deputy General Director of Joint-Stock Company Severstal-group" for Strategy and Controlling
• Nechaev Igor Evgenjevich - Commercial Director of JSC "Severstal"
• Noskov Mikhail Vyacheslavovich - Deputy General Director of Joint-Stock Company "Severstal-group"
• Pogozhev Alexander Vladimirovich - Production Director of JSC "Severstal"
• Stepanov Alexander Aleksandrovich - Technical Director - Chief Engineer of JSC "Severstal"
• Shvetsov Vadim Arkadievich - First Deputy General Director of JSC "Severstal-group"
• Kuvshinnikov Oleg Aleksandrovich - Director of Social Welfare of JSC "Severstal"
• Chelnokov Pavel Anatolievich - Director on Legal Issues of JSC "Severstal"

At the first session of Board of Directors which took place immediately after the meeting, Mr. Alexey Mordashov was elected Chairman of Board of directors of JSC "Severstal".

Shareholders also approves a number of issues, connected with day-to-day activity of the company.

Shareholders took the decision to split JSC "Severstal" shares by the factor of 25, therefore the quantity of the floated shares will be 551,854,800, nominal share price 0.01 roubles. The chartered capital of the Joint-Stock Society is 5,519 thousand roubles.

LLC "Firm Audit - training" (Moscow) was elected auditor for the Joint-Stock Society.