Moscow, Russia – June 28, 2005 – Mechel OAO (NYSE: MTL) announces results of its Annual General Shareholders’ Meeting.

The Shareholders’ Meeting approved a dividend of RUR 13.7 per share (about USD 1.44 per one ADR ¹) based on the operational results for 2004. The payout is expected to be effected in July 2005.

The Shareholders’ Meeting also re-elected the Board of Directors as follows: Igor V. Zyuzin, Vladimir F. Iorich, Alexey G. Ivanushkin, Valentin V. Proskurnya, and five independent directors: Sir Andrew M. Wood, Roger I. Gale, A. David Johnson, Serafim V. Kolpakov, and Alexander E. Yevtushenko.

The Shareholders’ Meeting approved Mechel’s annual report and annual Russian financial statements and report. The Shareholders’ Meeting also elected Mechel’s Review Commission and appointed Financial and Accounting Consultants Limited Liability Company, Moscow, as its auditor for its Russian statutory accounts.

New versions of Mechel’s Charter and the Bylaw on Remuneration to Members of the Board of Directors of Mechel OAO and Compensation of Their Expenses Connected with Their Execution of Functions of Members of the Board of Directors, as well as resolutions regarding approval of transactions, were approved.

The first meeting of the Board of Directors held following the Annual General Shareholders’ Meeting elected Igor V. Zyuzin to be its Chairman.

¹ Calculated at the exchange rate of the Russian Federation Central Bank as of June 28, 2005, amounting to 28.58 Russian Rubles per one US Dollar.

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Mechel OAO
Irina Ostryakova
Phone: 7-095-258-18-28
e-mail: irina.ostryakova@mechel.com