Moscow, Russia – June 13, 2006 – Mechel OAO (NYSE: MTL), a leading Russian mining and steel producer, announces its board’s dividend recommendation.
Mechel’s Board of Directors recommended to the annual general shareholders’ meeting an annual dividend of 19.7 rubles (approximately $2.27 per ADR 1) for the 2006 fiscal year. The total dividend would amount to RUR 8,200,533,676.5 (approximately $316 million). The dividend payment is in line with Mechel’s previously announced intention to distribute to its shareholders not less than 50% of its consolidated annual net profits under US GAAP, beginning with the dividend paid for the year 2005.
The record date for the Mechel’s share - and ADR-holders entitled to participate in the annual general shareholders’ meeting and to receive dividends is May 29, 2007. The annual general shareholders’ meeting will be held on June 29, 2007.
1 According to the Russian Central Bank exchange rate of 25.98 RUR/$ as of June 10, 2005.
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