The Board of Directors of Atomstroyexport (ASE) elected Mr. Kakha Bendookidze to the post of general director of that Company as of November 1, 2003.  Mr. Victor Kozlov, the former general director of ASE, will serve as the Chairman of the Board of Directors.

The global market for nuclear power plant equipment and services is one of the most important markets for OMZ.  Currently, OMZ is one of very few companies worldwide which manufactures primary circuit equipment for nuclear power plants with pressurized water reactors.  It participates in the construction of five nuclear power blocks currently being built outside of Russia.

Aiming to strengthen its positions on this global market at the beginning of this year OMZ acquired approximately 20% effective control of ASE which supplies equipment for nuclear power plants built abroad.  OMZ’s management is presently considering possible shareholding in ASE of other Russian nuclear equipment manufacturers as well as Russian financial institutions.

“This is a big and complicated task and I will do my best to improve growth and increase the transparency of this business” said Mr. Bendookidze adding that the business relationships between OMZ and ASE will continue to be based on market principles which is in the best interests of the shareholders of both entities.

Atomstroyexport is the largest Russian contractor in the field of construction and modernization of nuclear power plant stations abroad.  It has participated in the construction of more than 20 nuclear power blocks in countries like Finland, Hungary, Czech Republic, Slovakia and Bulgaria.  Total exports of ASE amounted to US4640 million in 2002.  The order book of ASE currently totals US$ 2,900 million.