Moscow, Russia – February 10, 2006 – Mechel OAO (NYSE: MTL) has announced that Igor Zyuzin, Chairman of the Board, will increase his stake to a controlling interest.

Mechel’s core shareholders have reached an agreement pursuant to which Mr. Zyuzin, Chairman of the Board, will purchase a 42.2% stake from Mechel’s CEO, Vladimir Iorich, over the course of the next twelve months. Mr. Zyuzin is considering several financing options for the transaction, including through a potential capital markets or strategic transaction. Regardless of the financing selected, he will retain at least a 51% stake.

Additionally, over the course of the coming year, Mr. Iorich will gradually transition his responsibilities as CEO to Mechel’s current Chief Operating Officer, Alexei Ivanushkin. Mr. Ivanushkin has acted as COO since January 2004 and a member of the Board of Directors since March 2003. From March 2003 to January 2004 he acted as CEO of Mechel, and from December 1999 to April 2002 he was General Director of Chelyabinsk Metallurgical Plant, Mechel’s primary steel-making subsidiary.

Mr. Iorich will continue to serve as CEO and a member of the Board of Directors during the transition period. Mr. Igor Zyuzin will continue in his position of the Chairman of the Board.

Mechel’s CEO Vladimir Iorich commented: “We have built Mechel into one of Russia’s leading mining and steel companies, fulfilling a strategy of strong and profitable growth, efficiency and transparency. Having been a founding shareholder and CEO for many years, I feel that we have built a solid platform for the future. I am confident that Alexei Ivanushkin, who has been part of our growth story and a member of our team for many years, will lead the company into the future and drive performance and shareholder value. I will do all I can to support him in a smooth transition."

Mechel’s Chairman Mr. Zyuzin noted: “As one of Mechel’s founders, Mr. Iorich has greatly contributed to turning it into a strong company that has gained international respect through both its performance and its IPO on the NYSE. With Mr. Iorich’s continuing involvement, and building on Mechel’s existing platform, we are confident that we will successfully execute on our initiatives to further improve financial and operational performance."

Mechel’s COO, Alexei Ivanushkin added: “I am happy that my experience and energy will be employed to fulfill such a challenging task. I am looking forward, together with our highly professional management team, to driving Mechel’s performance in the future.”