Moscow, Russia – January 13, 2009 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces a dividend payment (including taxes) of RUR10,974,744,749.12 (approximately US$378.4 million as of December 31, 2008), based on the Company’s results for the 2007 fiscal year.

Mechel OAO has allocated for its annual dividend payment to shareholders for the 2007 fiscal year the total of RUR10,981,222,253.10 (approximately US$378.6 million as of December 31, 2008) (including taxes), or RUR26.38 (approximately US$0.9 as of December 31, 2008) per one ordinary registered book-entry share. The amount of funds allocated to pay the annual dividend is over 50% of the company’s net profit for 2007 according to US GAAP.

As of December 31, 2008, all funds to pay the dividend to the holders of Mechel’s ADRs were transferred to the account of the Company’s depositary bank (Deutsche Bank), which will distribute them before January 15, 2009.

Total dividends of RUR6,477,503.98 (approximately US$223 thousand as of December 31, 2008), or 0.06% of the allocated amount, were not distributed to certain shareholders due to their failure to fulfill their obligations to provide information on their bank details required to transfer the dividends.