On November 18, 2004, Standard & Poor's Ratings Services affirmed its 'CCC+' ratings on OMZ (Uralmash-Izhora Group) (OMZ) and removed the Company from CreditWatch, where it was placed on December 19, 2003. The outlook is stable.

Standard & Poor's has based their decision on the results of the management’s efforts to optimize and reduce the debt position of the Company. OMZ redeemed US$ 30 million CLNs earlier this week and has over the past several months successfully refinanced US$ 180 million short-term debt. Since July this year the Company has increased the average duration of its bank debt from six months to one year and the long-term portion of debt currently stands at 40% of total debt. In the future, OMZ plans to increase the portion of longer-term public debt instruments in its portfolio.

“During the past few months we worked actively to optimize the debt portfolio in following with the debt reduction program we announced in August of this year. We are happy that Standard & Poor's have appreciated our efforts. The current financial position of the Company is stable and that would allows us to continue implementing our plans.” Said Mr.Lipsky, CEO of OMZ.

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