Mechel’s Board recommends dividend amount

Mechel’s Board of Directors recommended to the annual general shareholders’ meeting an annual dividend of 19.7 rubles (approximately $2.27 per ADR1) 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.