Belon Published Financial Results for the First Half of 2007

Belon Group published its audited consolidated financial statements for the first six months of 2007. These were prepared in accordance with the International Financial Reporting Standards. During the reporting period, the Company improved its key financial indicators: the total revenues increased to $263 mln., EBITDA—to $42 mln., or by 40% and 68% respectively, as compared with the first half of 2006.

A better financial performance was fuelled by the growth in production and the coal output increase. The improved quality of the coal produced allowed raising its selling price. The total production of coking and steam coals in the first half of 2007 increased to 2,483,000 tons, or by 46% compared with the first half of the previous year.

The released financial statements compare the performance of Belon Group in the first six months of 2007 to the indicators of the respective period of the previous year. The assets of the Novaya-2 mine acquired in the first six months of 2006 were adjusted according to the current value, which added $51 mln. to the financial results of that period.

Without taking this factor into consideration, the net profit of Belon Group for the first six months of the current year increased almost four-fold to amount to $8 mln.