Moscow, 14 September 2004: OAO Volgograd Aluminium will be integrated into Siberian-Urals Aluminium Company as subsidiary of OAO SUAL by the end of 2004. This follows the approval of shareholders representing an overwhelming majority of shares in both companies at their respective extraordinary general shareholder meetings held on 31 August 2004.

The meetings were attended by shareholders with 99.51 per cent and 96.46 per cent of the voting shares of OAO Volgograd Aluminium and OAO SUAL respectively. According to the results from the meetings, an absolute majority of the participants, 99.99 per cent of the total of OAO SUAL shareholders and 93.02 per cent of OAO Volgograd Aluminium shareholders voted in favour of the incorporation of Volgograd Aluminium into OAO SUAL.

The next step required to complete the merger will be a joint general meeting of the shareholders of both companies.

Volgograd Aluminium and the OAO Metallurg subsidiaries, Volkhov Aluminium and Pikalevo Alumina, were incorporated into the SUAL Group production chain in 2002, after the SUAL Group and the SevZapProm Management Company had made arrangements to merge their aluminium assets. Subsequently, arrangements were made to convert shares in OAO Volgograd Aluminium and OAO Metallurg to shares in OAO SUAL.

In addition to Volgograd Aluminium, Volkhov Aluminium and Pikalevo Alumina will become subsidiaries of OAO SUAL by the end of this year.

Notes to Editors

About SUAL

The SUAL Group is a vertically integrated business among the ten largest aluminium producers in the world. It comprises industrial enterprises involved in the mining of bauxite and production of alumina, primary aluminium, silicon, semi-finished and finished aluminium products.

Annually, operations of the SUAL Group:

• Mine some 4.4 million tonnes of bauxite
• Refine more than 2 million tonnes of alumina
• Produce some 890,000 tonnes of primary aluminium
• Produce more than 50,000 tonnes of silicon
• Manufacture more than 110,000 tonnes of aluminium products.

Currently subsidiaries of OAO SUAL, which is part of the SUAL Group, comprise Bogoslovsky Aluminium (BAZ), Ural Aluminium (UAZ), Irkutsk Aluminium (IrkAZ), Kandalaksha Aluminium (KAZ), Nadvoitsy Aluminium (NAZ).

Volgograd Aluminium (VgAZ) — is the seventh largest aluminium plant in Russia and SUAL Group's most southerly enterprise. The pilot batch of aluminium was produced at VgAZ in 1959. Today, the plant produces more than 150 thousand tonnes of primary aluminium per annum.