On August 30, 2007, an extraordinary general shareholders' meeting of OJSC MMK was held in the form of absentee voting.
The Meeting took decisions on the following:
1. Payments of dividends on placed ordinary registered shares of OJSC MMK for the first half of 2007 in the amount of RUB 0.418 per share (inclusive of tax) which corresponds to the recommendations of the Board of Directors.
2. Approval of a major transaction regarding the signing of a 10-year contract for the supply of iron ore materials between OJSC MMK and ENRC Marketing, Switzerland.
3. Reorganization of OJSC MMK in the form of the merger of MMK-Kapital into OJSC MMK.
ZAO MMK Kapital is a 100% subsidiary of OJSC MMK. At the same time ZAO MMK Kapital owns 498,495,023 registered ordinary shares of OJSC MMK, which represents 4.27 % of OJSC MMK's authorized capital.
The issue of MMK-Kapital's merger into OJSC MMK was considered as part of the MMK Group's Structure Reorganization and Optimization Program. The decision taken by the shareholders will allow to avoid cross shareholding and enhance the transparency of OJSC MMK's equity structure.
On completion of the reorganization procedure all the shares held by MMK-Kapital will be cancelled. Following the approval by the Board of Directors of the Report on the Shares' Cancellation the number of OJSC MMK's placed shares will comprise 11,174,330,000 registered ordinary shares, with the Company's Charter to be amended accordingly. This change of the authorized capital will result in the proportional increase of the weight of share packages owned by OJSC MMK shareholders.