January 28, 2003, Moscow – OMZ, the leading Russian heavy machinery and engineering company, made a strong move to improve the depth of its management and announced today the appointment of three new key members to its senior management team: Mr. Alexey Shavrov, Mr. Igor Gorsky and Ms. Marina Nacheva.

Mr. Alexey Shavrov will serve as a Deputy Chief Executive Officer in charge of the nuclear power plant equipment segment (NPPEQ) at OMZ. Mr. Shavrov has been brought on board specifically tasked with the role of generating new business and driving continual growth in OMZ's NPPEQ business throughout local and international markets. Alexey Shavrov has over 10 years of top-level managerial experience in multinational companies, such as Cargill, Oleina S.A./Cereol/Eridania-Beghin-Say and Unibrasco S.A. and experience in several Central, West European and Asian markets. He holds an MA degree in International Economic Relations from the Moscow State University of International Relations.

Mr. Igor Gorsky has been appointed as a Deputy Chief Executive Officer in charge of the specialty steel business at OMZ, as well as all non-core businesses, including petrochemicals, cranes, specialty instruments as well as other smaller service businesses. Mr. Gorsky's efforts will be directed towards growing domestic sales of steel as well as developing an export market for OMZ's steel products. Igor Gorsky has most recently been President and member of the Board of Directors at the National Timber Company where he was responsible for strategy, operations and business development. Prior to that Mr. Gorsky has worked at Sputnik Fund and Deloitte & Touche in Moscow. Mr. Gorsky holds a degree in Economics from the Moscow State University.

Mr. Shavrov and Mr. Gorsky are also members of the Executive Board of OMZ which is chaired by Mr. Kakha Bendoukidze, President and CEO of OMZ.

Ms. Marina Nacheva has been appointed as OMZ's Investor Relations Director. Ms. Nacheva will be carrying out all aspects of investor relations and corporate communications for OMZ, including a responsibility for institutional and retail investor relations. In addition, she will be managing selected corporate finance assignments at OMZ. Ms. Nacheva is a recent MBA graduate of the Wharton Business School at the University of Pennsylvania, USA. Previously Ms. Nacheva has worked as Business Development manager at the Moscow office of Monsanto S.A. and later as Director of Business Development for Arcadia.ru, an Internet start-up.

"Bringing a new generation of professional managers to OMZ just as the company is repositioning itself as a global player in the highly competitive world of knowledge intensive engineering is a timely and well calculated move, which is fully supported by the OMZ Board of Directors", -- said Rodric Braithwaite, an independent non-executive member of the Board of Directors and Chairman of OMZ's Committee on Compensation.

The appointment of these key members of management demonstrates OMZ's commitment to build a strong management team and improve the level of expertise at the business segment level. Creating dedicated professional management teams in charge of each of OMZ's six business segments will allow the company to address issues of operational and financial efficiency and ensure focused growth in those areas.

About OMZ

OMZ is Russia's largest publicly traded diversified engineering and heavy machinery corporation. OMZ's shares are listed on MICEX and RTS (ticker OMZZ), its Level 1 ADR program is serviced by the Bank of New York.

OMZ is involved in engineering, production, sales and services of knowledge-intensive equipment and machinery along six major business segments: oil and gas rig equipment (OILEQ), equipment for nuclear power plants (NPPEQ), metallurgical equipment (METEQ), mining equipment (MINEQ), shipbuilding (SHIP), and specialty steels (STEEL).

For more information about OMZ please visit www.omzglobal.com or contact Marina Nacheva at 7095-974-6021, email: mnacheva@omz.ru.