On June 16, 2003 Mr. Kakha Bendookidze, CEO of OMZ, met in London with Mr. Jean Lemierre, President of EBRD. Present at the meeting were also Mr. Lipsky, COO of OMZ, as well as Mr. Gorsky and Mr. Shavrov, deputy general directors.

Issues discussed at the meeting included the possibility for EBRD participation in OMZ projects, namely in the field of nuclear power plant equipment, metallurgical equipment as well as management of non-core assets.

The representatives of OMZ and EBRD are hoping that such projects will be finalized in the nearest future.

The EBRD provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. It also works with publicly owned companies, to support privatization, restructuring state-owned firms and improvement of municipal services.

OMZ (United Heavy Machinery) is the largest Russian private heavy engineering corporation. The Company designs, engineers, produces, markets and services knowledge intensive equipment and machinery for the on- and offshore oil and gas industry, including transportation, the nuclear energy and mining industries.

The Company’s 2002 GAAP sales amounted to $400* million, approximately a 30% increase over 2001 sales, with a $1,000 million order book as of May 2003. OMZ’s major markets are in Russia, Eastern Europe and Asia. The Company’s sales outside Russia amounted to $131 million in 2002.

OMZ is a publicly traded company on the Russian stock exchange and several international OTC markets. The Company intends to finalize the listing of its depository receipts on the London Stock Exchange in the third quarter of 2003.

* Preliminary results