OMZ Board of Directors Approves Conceptual Plan for Izhora Production Complex Development for 2008-2010

OMZ (Uralmash-Izhora Group) announced the approval by its Board of Directors of a Concept of Development for the OMZ Production Complex at the Izhora Production Site for 2008-2010.

The development priority will be a radical modernization of existing equipment and formation of new advanced technology facilities in order to increase efficiency and enhance competitive advantages for OMZ's business. The program of reconstruction at the Izhora production site is being developed in connection with the Federal Program for Energy Industry Development. Based on the Federal Program, Izhorskiye Zavody plans to raise production from two power units for nuclear power plants per year to three and more units per year by 2011. Moreover, the company plans to double the production of large and super large size forgings and to increase the production of heavy mining equipment. The detailed plan for concept implementation is scheduled for completion by June 2008.