OMZ published today its 2004 interim consolidated unaudited IFRS financial results. The results are presented in a format that allows investors to compare the performance of OMZ’s continuing operations for the six months of 2004 with the same period in 2003 (excluding the effect of the disposal of OMZ Onshore&Offshore, OMZ’s shipbuilding and oil drilling equipment division). The Company’s management notes that the interim financial results are in line with earlier Company forecasts.

Consolidated sales for the first six months of 2004 totaled US$176,2 million, a 32% increase over the same period of 2003. Gross profit increased by 38% and reached US$53 million. EBITDA reached US$18,5 million and operating profit increased by 46% to reach US$13,5 million. Net income for the six months of 2004, before the loss from discontinued operations, amounted to US$5,4 million. International sales, including sales to CIS countries, reached US$103 million or 41,5% of total sales.

During the second half of 2004 OMZ acquired two Czech companies – Skoda JS (manufacturer of nuclear power plant equipment) and Skoda Steel (manufacturer of specialty steel), whose net assets totaled US$93 million, for US$42 million. If the acquisition of the Skoda companies and the disposal of OMZ Onshore&Offshore were executed on 1 January 2004 OMZ would have posted sales of US$277,1 million, EBITDA of US$24 million and operating profit of US$14,1 million.
The financial results can be viewed on the Company’s website www.omz.ru ( https://www.omz.ru/rus/financial/corporate/)

For further information please contact Marina Nacheva, Head of Investor Relations, on (++7095) 974 6021 or by e-mail at mnacheva@omz.ru.