Moscow, Russia – May 23, 2006 – Mechel OAO (NYSE: MTL), a leading Russian integrated mining and steel group, today announced resolutions of the Board of Directors.
Mechel’s Board of Directors today announced the following resolutions:
1. The Board of Directors recommended to Mechel’s shareholders a dividend payment of RUR 12.73 per share (approximately USD 1.41 per one ADR 1) based on the operational results for 2005. 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.
2. Mechel’s Board of Directors set the date for the annual general meeting of shareholders (AGM) for June 30, 2006. The record date for the Company’s shareholders entitled to participate in the AGM and to receive dividends for 2005 has been set for June 2, 2006.
3. The number of members of the BoD will remain unchanged at nine. In line with the schedule provided for by Mechel’s Charter, the following candidates were proposed for nomination to the Board:
• Igor Zyuzin
• Vladimir Iorich
• Alexei Ivanushkin
• Roger Gale
• David Johnson
• Serafim Kolpakov
• Alexander Evtushenko
• Valentin Proskurnya
• Alex Polevoy
1 Calculated at the exchange rate of the Russian Federation Central Bank as of May 23, 2006, amounting to 27.10 Russian Rubles per one US Dollar.
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