Mechel’s ADRs have been listed on the New York Stock Exchange since October 29, 2004. Each ADR is issued for one American Depositary Share (ADS). From the date of its listing, each ADS represented three ordinary shares of Mechel OAO. However, beginning today, each ADS will now represent one ordinary share of Mechel OAO. To implement the ratio change, two additional ADRs were issued for each ADR after the close of the market on May 16, 2008. The change will not affect the holders of Mechel’s ordinary shares.

The decision to change the ratio of Mechel’s ADRs to its ordinary shares was adopted by Mechel OAO’s Board of Directors with the intention to increase liquidity of Mechel’s ADRs, bringing its price to more customary market standards.

Mechel OAO’s Chief Financial Officer Stanislav Ploschenko commented on the decision, “From the date Mechel’s ADRs were listed on the New York Stock Exchange, the price of each ADR increased from US$21 to a record high of US$171 in 2008. Following standard market practice, we decided to increase liquidity of Mechel’s securities and give investors the opportunity to operate in a more customary price range while managing their investment strategies.”