INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2007

· Revenue grew 57.5% to US$6,023 million from US$3,825 million in 1H 2006 due to

recent acquisitions, improved sales mix and growth in average prices of steel products.

· Consolidated adjusted EBITDA was up 87.0% to US$2,050 million from US$1,096 million in 1H 2006.

· Net profit attributable to equity holders grew 98.2% to US$1,126 million from US$568 million in 1H 2006.

· Operating cash flow was up by 82.6% to US$1,651 million due to higher profit margins and improved working capital management.

· Earnings per GDR increased by 96.9% from US$1.62 for 1H 2006 to US$3.19.

· Crude steel production grew by 5.3% year-on-year to 8.4 million tonnes.

· Total steel sales volumes increased by 1.5% to 8.5 million tonnes.

· Revenues from vanadium sales rose by 190.4% as a result of the Stratcor and Highveld acquisitions.

· Iron ore production grew by 10.2% to 9.3 million tonnes with iron ore self-coverage reaching 84%.

· The acquisition of 50% of Yuzhkuzbassugol in June brought the total shareholding in the coal company to 100%.

· Successful tender offer for 100% of Oregon Steel Mills (USA) for US$2.3 billion completed in January

· Acquisition of 93.35% of ZapsibTETs for US$232 million in May

· Acquisition of control over Highveld Steel and Vanadium Corporation in April

· Acquisition of outstanding 50% in Yuzhkuzbassugol for US$871 million in June

(US$ million unless otherwisestated)

                                                  1H 2007        1H 2006        Change