Moscow, Russia – August 21, 2008 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces deployment of production and service equipment at Mechel Service OOO sales subsidiary’s branches within the scope of its development program.

For Mechel Service’s development program in 2008, equipment for straightening and cutting-off wire reinforcing bar was launched in August at Yekaterinburg, Krasnodar, Saint-Petersburg, Sochi and Chelyabinsk. This upgrade has allowed the service and sales company to extend the range of services at its warehouses, such as offering reinforcing bar cut at an exact length for customers. Total production capacity of such equipment at Mechel Service branches is 1,500 – 2,000 tonnes of processed rolled products per month.

Regional projects under implementation include the reconstruction of production and warehousing complexes in Yekaterinburg and Ufa to increase the company's regional market share, further improve customer service and continue to extend the range of products sold.

This year, Mechel Service intends to complete the installation of an automatic line for welded mesh production in the Moscow region, enabling the capacity of 1,200 – 1,500 tonnes per month. Within the scope of its own regional production and warehousing network development Mechel Service is also considering an opportunity of acquisition of several real estate properties in the largest Russian cities.