Moscow, Russia – July 24, 2006 – Mechel OAO (NYSE: MTL), a leading Russian integrated mining and steel group, today announced the date of its 2005 dividend payout.

Following the decision of the Annual General Shareholders Meeting, Mechel OAO will pay out dividends for the 2005 fiscal year on July 25, to shareholders of record at the close of business on June 2, 2006. The dividend amount is RUR 12.73 per share (about USD 1.42 per one ADR1) based on the company’s operational results for 2005, amounting to a total of RUR 5.3 billion (about $196.9 million1). The dividends’ value exceeds 50% of Mechel’s net income under US GAAP.

The dividend payment is in line with Mechel’s previously announced intention to increase its dividend from 15% to 50% of net profits under US GAAP, beginning with the dividend paid for the year 2005.

¹ at the exchange rate of the Russian Federation Central Bank for July 25, 2006, amounting to 26.92 Russian Rubles per one US Dollar.