OMZ (Uralmash-Izhora Group) held its Repeat General Shareholders’ Meeting (RAGM) in Moscow on 9 August 2004. 57% of shareholders participated in the meeting.

Shareholders approved the annual report on the company’s activities in 2003 presented by Mr. Sergei Yurchuk, OMZ Finance Director. In addition, shareholders approved the preferred stock dividend payout for 2003 in the amount of 12% of par value, which will be paid in cash no later than December 31, 2004.

The AGM approved a change in the Company’s Charter which relieves shareholders who alone or together with his affiliated entities acquire 30% or more of the issued common shares of the Company from the obligation to offer the remaining shareholders to buy their holding of the Company's common shares and/or other securities which are convertible into common shares of the Company.

The AGM approved the compensation of Board members for their service in the 2003-2004 period as well as the Provision on the Compensation of the members of the Board of Directors for the 2004-2005 period. In addition, it elected a three-member Revision Commission and approved Rosexpertiza as the Company’s statutory accounts auditor.

The following members were elected to the OMZ Board of Directors:
1. John Sliman – Power Machines Board member
2. Alexander Konovalov – General Director and Board member, Tantema Fund Management
3. Wiesinger Horst – Managing Director of Horst Wiesinger Consulting GmbH
4. Remes Seppo – President of Kiuru Partners
5. Sergey Skaterschikov – General Director, IndexAtlas Ltd.

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