Vladimir Polin, formerly Senior Vice President for Production, was promoted to the position of Chief Executive Officer of the company’s Mechel Management Company OOO subsidiary. He replaces Vladimir Iorich, who is leaving it within the agreement between core shareholders of Mechel OAO reached early 2006. Mr. Iorich currently remains a member of Mechel’s Board of Directors, but will leave the Board over the course of 2006 pursuant with this agreement.

Additionally, in connection with his nomination to the Board of Directors, Alex Polevoy will resign from the post of Mechel’s Chief Financial Officer as of June 30, 2006. He will be replaced by Anton Vishanenko, head of international reporting department, who has been with Mechel for three and a half years. Anton Vishanenko is a member of ACCA (Association of Chartered Certified Accountants of the United Kingdom), an associate member of AICPA (American Institute of Certified Public Accountants).

Alex Polevoy will continue to work on improving Mechel’s corporate practices and financial reporting system as a member of the Board of Directors, and will take part in work of an Audit committee without voting rights.

“The Management of Mechel OAO is pleased that the key positions in our company will be run by such highly qualified managers. Vladimir Polin has long been with Mechel OAO and its subsidiaries, and has played a key role in shaping Mechel’s production and sales policies. We also firmly believe that Anton Vishanenko’s qualifications and expertise, which he has demonstrated while introducing best practice financial and management standards throughout the company, together with his close working relationship with Alex Polevoy, will ensure a smooth transition and succession as well as further successful financial performance of Mechel,” said Alexey Ivanushkin, Chief Opertaing Officer of Mechel OAO.