Moscow, Russia – October 11, 2006, – Mechel OAO (NYSE: MTL), one of the leading vertically-integrated mining and metals companies, announced today its operational results for the nine months of 2006

Product	Nine months of 2006, thousand tonnes	Nine months of 2006 as compared to nine months of 2005, %
Coal	12,378	+ 6
Coking coal	6,938	+ 7
Steam coal	5,440	+ 5
Iron ore concentrate	3,748	+ 11
Nickel	10.53	+ 17
Hardware	451	+ 9
Fofginigs	54	- 14
Stampings	76	-1
Rolled products	3,523	+ 2
Flat products	296	+ 40
Long products	1,877	0
Semi-finished products	1,349	- 1
Steel	4,425	0
Pig Iron	2,680	+ 8
Coke	1,663	- 15

Alexey Ivanushkin, Mechel’s Chief Operating Officer, commented on operational results for the first nine months of 2006: “High production results for the third quarter have offset the decline for the first quarter, which enabled Mechel to return to the planned production volumes for the year. In the third quarter we witnessed growth in all markets of our mining segment. Favorable market conditions and successful implementation of our programs for technical modernization enabled us to increase production volumes, and as a result Mechel is now the third largest coal producer in Russia. In the steel segment we saw pricing improve for rolled products, and we continued to scale up production volumes of higher-margin flat products given the present full capacity utilization for the production of long products. The increase in flat products volume became possible due to an overhaul of sheet rolling mills at the company’s Chelyabinsk metallurgical plant that was carried out last year. At the same time, going through a period of low markets for coke-chemical products, we carried out scheduled maintenance work on production lines for these types of products, resulting in lower output of coke in the quarter. However, in the forth quarter we expect an increase in coke production owing to the commissioning of a new coke battery with a capacity of about 500 thousand tonnes a year.