Zheleznogorsk-Ilimskiy, Russia – March 31, 2008 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the reception of a new excavator at its iron ore mining subsidiary, Korshunov Mining Plant OAO.

The Korshunov Mining Plant continues to receive new technological equipment in line with the technical re-equipment program for Mechel OAO subsidiaries.

The new Komatsu electrohydraulic mining excavator, with a 19.0 cubic meter bucket capacity, has been assembled and started its operations at the Rudnogorsk Open Pit. It is equipped with an asynchronous electric engine of 1350 kW capacity. The machines’ weight is 360 tonnes.

The excavator was delivered to the Irkutsk Region from Düsseldorf, Germany, and assembled under the direction of the manufacture's representative, Mining Solutions, and the Supervising Engineer of Komatsu’s German branch. The project cost amounted to over RUR200.0 million (approximately over US$8.0 million).

This excavator is the largest machine of its kind in the Korshunov Mining Plant’s arsenal. Its width is about 7.0 meters, digging height is 17.0 meters and digging depth is 3.0 meters.

To operate this excavator, a crew of the Korshunov Mining Plant’s operators was given additional training and practical work at Mechel’s Yakutugol OAO subsidiary, where these machines have already been working. The new excavator is intended to be used at the upper stripping levels of the Rudnogorsk Open Pit. Commissioning of the new high-technology machinery at the Korshunov Mining Plant will enable the Rudnogorsk Open Pit to increase its iron ore output, thus contributing to successful fulfillment of the Korshunov Mining Plant’s production program.