Sergey Lipsky has been appointed as Chief Executive Officer of OMZ (Uralmash-Izhora Group) by the newly elected OMZ Board of Directors. Mr. Lipsky has been acting CEO since Mr.Yakovlev, CEO of Power Machines, left his CEO position at OMZ as a result of the termination of the merger procedures between OMZ and Power Machines.

Mr. Lipsky started his career as an auditor at Coopers&Lybrand, St.Petersburg, in 1994 and later joined Uniland, a large distribution company, as a Chief Financial Officer. In 1999, Mr. Lipsky became the Chief Financial Officer of Technosila, a national electronics retail chain, and a year later was appointed as its Chief Executive Officer. Mr.Lipsky joined OMZ at the beginning of 2003 as its Chief Operating Officer.

Mr. Lipsky is a graduate of the Economics department of the St.Petersburg State University and has attended a one-year course in Banking and Finance at the London School of Economics.

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