SUAL group of companies has started the second construction stage of the alumina-aluminium complex in the Komi Republic with the incorporation of ZAO Komi Aluminium in February 2003.

The future complex will be the next development of the Middle-Timan bauxite deposit, operated by SUAL group of companies since December 1997.

In October 2002 the work on the feasibility study of “Komi Aluminium” project was completed and the study was approved by SUAL Holding Board of Directors. The estimated cost of the project is of USD 2.1 bln. The expected output of the alumina-aluminium complex will be of 1,400,000 metric tons per year (mtpy) of alumina and 300—500,000 mtpy of aluminium. The construction on site will begin in the end of 2003.

ZAO “Komi Aluminium” will be the operator of the construction and the functioning of the alumina-aluminium complex in Komi Republic. OAO “SUAL” is the incorporator of ZAO “Komi Aluminium” with a 100% equity interest.

The equity capital of the ZAO is of RUR 3 mln (about 100,000 USD), an increase to RUR 2 bln (more than 60 mln USD) is planned. Mr.Vladimir Kremer is appointed Director General of ZAO “Komi Aluminium”. The Board of Directors consists of: Vladimir Kremer, Evgeny Olkhovik (First Vice-President of ??? “SUAL Holding”), Vladimir Skornyakov (First Vice-President of ??? “SUAL Holding”), Vasily Kiselev (Vice-President of ??? “SUAL Holding”), Alexander Okatov (President of ZAO “Sevur holding”), Vitaly Potylicyn (Director of the Middle Timan Bauxite Mining Complex Construction directorate), Leonid Selivanov (Director of Corporate Property Department of ??? “SUAL Holding”), William Shor (Vice-President of OAO “SUAL Holding”)

Notes to Editors

SUAL group of companies is developing Middle Timan bauxite deposit (Komi Republic), the largest in Europe, since 1997. For 30 years, this deposit has not been developed due to the inconvenient location in the taiga, absence of infrastructure and remoteness from major transportation routes. OAO “Bauxite Timan” was created in 1992 to develop the deposit and later SUAL group of companies became its major shareholder and investor. Together with the start of bauxite extraction started the construction of motor roads and railroads. The construction of the railroad (the first private railroad since the revolution of 1917) was completed in 2002. This railroad is a link with the major transportation routes of the Komi Republic. The total investment of SUAL in the project amounted to more than USD 100 mln.

Vladimir Kremer was born in 1957 in Moscow. In 1979 he graduated from Moscow Institute of Transport Engineers with a master’s degree in engineering and later got PhD in technical sciences.

From 1979 -1991, Vladimir consecutively held the positions of engineer, chief engineer, head of science research team, and head of laboratory in the Institute of Mining and Exploration.

Since 1991 to 1996, he worked as Sales and Marketing Deputy Director in Russian-American investment group “Renova”.

In 1996 Vladimir Kremer was appointed International Sales Director of OAO SUAL and then, in 1998 he became Member of the Board, OAO SUAL.

In February 2003, he was elected Coordination Committee Chairman of Komi Aluminium Project.