Moscow, Russia – July 3, 2006 – Mechel OAO (NYSE: MTL), a leading Russian mining and steel company, today announced the results of its Annual General Shareholders’ Meeting.
The Annual General Shareholders Meeting adopted the following resolutions:
• To approve a dividend of RUR 12.73 per share (about USD 1.41 per one ADR 1) based on the company’s operational results for 2005, amounting to a total of RUR 5.3 billion ($195.7 million 1). The dividends’ value exceeds 50% of Mechel’s net income under US GAAP.
Dividends should be paid out before the end of 2006.
• To elect the following people to Mechel’s Board of Directors (BoD):
o Igor Zyuzin;
o Vladimir Iorich;
o Alexey Ivanushkin;
o Roger I. Gale (independent director);
o A. David Johnson (independent director);
o Serafim V. Kolpakov (independent director);
o Alexander E. Yevtushenko (independent director);
o Valentin V. Proskurnya (independent director);
o Alex Polevoy.
The number of Directors on the Company’s Board remains unchanged from last year. Independent directors, as before, make up the majority in Mechel’s BoD.
• To approve Mechel’s annual report and annual Russian financial statements and report.
• To elect Mechel’s Review Commission and appoint Financial and Accounting Consultants Limited Liability Company, Moscow, as its auditor for its Russian statutory accounts.
• To approve changes and additions to Mechel’s Charter.
The first meeting of the Board of Directors in 2006, held following the Annual General Shareholders’ Meeting, re-elected Igor V. Zyuzin to be its Chairman.
1Calculated at the exchange rate of the Russian Federation Central Bank as of June 30, 2006, amounting to 27.08 Russian Rubles per one US Dollar.
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