Mechel announces results of its annual general shareholders’ meeting

JSC Mechel announces the results of its Annual General Shareholders’ Meeting.

The Annual General Shareholders’ Meeting adopted the following resolutions:

• To approve a dividend of RUR 19.70 per one ordinary registered book-entry share (about USD 2.27 per one ADR 1) based on the company’s operational results for 2006. The total dividend recommended by the Board of Directors to the Annual General Shareholders’ Meeting amount to RUR 8.2 billion (approximately $316.0 million 1), which complies with Mechel’s previously announced intention to allocate not less than 50% of its net income under US GAAP to pay dividends beginning from the payment of the dividends for fiscal year 2005.

Dividends should be paid out by bank transfer not later than December 31, 2007.

 

• To elect the following people to Mechel’s Board of Directors (BoD):

 - Igor Zyuzin;

 - Alexey Ivanushkin;

 - Vladimir Polin;

 - Roger Gale (independent director);

 - A. David Johnson (independent director);

 - Serafim Kolpakov (independent director);

 - Alexander Yevtushenko (independent director);

 - Valentin Proskurnya (independent director);

 - Alex Polevoy.

The number of Directors on the Company’s Board remains unchanged from the last year. Independent directors, as before, make up the majority in Mechel’s BoD.

 

• To approve Mechel’s annual report and annual Russian financial statements and report, including profit and loss account, to elect Mechel’s Review Commission, and appoint BDO Unicon ZAO, Moscow, as its auditor for its Russian statutory accounts.

During the first meeting of the Board of Directors in 2007 that followed the Annual General Shareholders’ Meeting, Valentin Proskurnya was elected as Chairman of Mechel .

The Board of Directors also adopted the resolution to convene the Extraordinary General Shareholders’ Meeting on August 6, 2007.