5 March, 2005. The Board of Directors of OMZ (Uralmash-Izhora Group) (OMZ) approved the key strategic directions for the development of the Company in the 2005-2007 period.

The Company will continue to develop its business in four key segments – nuclear power plant equipment, mining equipment, specialty steel products and manufacturing services.

In the nuclear power plant equipment segment OMZ will focus its efforts on becoming an EPIC contractor (engineering, procurement, installation and commissioning) for the pressurized water nuclear island. As a result, the Company will be involved not only in manufacturing of its own equipment but in procurement of complementary equipment from other manufacturers and service providers, with component manufacturing joint ventures and alliances considered as a possible development in this field. Other priority growth areas in this segment are the service, maintenance, spare part delivery and upgrades of nuclear power plants in Russia and abroad as well as the sales of containers for transportation and storage of spent nuclear fuel. In addition, the Company has taken a decision to participate in the development of a 1,500MW pressurized water reactor. To achieve these goals OMZ will focus on integrating Skoda JS - its recently acquired nuclear power plant equipment business in the Czech Republic, into its existing operations.

A priority area for the development of the mining equipment segment will be setting up a service, spare part delivery and maintenance network in Russia to service existing as well as new clients. The Company will actively explore the Chinese and South-East Asian market for mining equipment and has already opened representative offices in China and India. In addition, OMZ will focus on upgrading its mining equipment product line and developing engineering for conceptually new types of excavators.

OMZ’s task in the specialty steel segment is to increase the share of exports of specialty steel products, including semi-finished products for the heavy machinery industry. A priority for this segment is increasing the operational efficiency of the business and realizing synergies with Skoda Steel, its recently acquired specialty steel subsidiary in the Czech Republic.

In its manufacturing services business OMZ will focus on the delivering equipment for the metallurgical, mining, energy generation and cement industries according to third party engineering.

The Board approved the OMZ restructuring program with key aspects of the program being concentration of manufacturing capabilities on key components and processes and increasing the level of outsourcing of products and services. The program will involve optimization of business processes, spin-off of non-core assets and businesses and set-up of industrial parks on the freed-up manufacturing territories.

In addition, the Board of OMZ approved the Regulation on Information Policy of the Company which has been developed in accordance with recommendations of the Russian Federal Securities Commission, the Code of Corporate Governance of the Company, the requirements of exchanges where OMZ’s securities are listed, the Company Charter and other Company documents.

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