The new stranding machine commissioned at BMP was manufactured by Mario Frigerio, Italy and has an annual capacity of over 4,000 ropes. It will enable BMP to start producing high quality ropes of 11.5 mm - 16.0 mm in diameter and increase its current output of 16.0 mm - 22.0 mm diameter ropes. The cost of the new project was about RUR40.0 million (approximately US$1.7 million).

BMP is currently one of the leading Russian producers of steel ropes with a wide array of products between 0.6 mm - 64 mm diameter for use in various applications. The new equipment will allow BMP to increase its presence in this market.

BMP also received a new modern Hitachi excavator designed to work at the Pugachev lime pit. The excavator is equipped with two buckets of 0.8 and 1.8 cubic meter capacity, and a hydrowedge, which will operate to crash oversized limestone for subsequent processing it at the crushing and screening plant. The new machine complies with modern technological requirements and is noted for its high capacity.

These actions were taken in line with BMP's investment program aimed to improve product quality, increase output, reduce production costs, and generate additional profit.

Mechel is one of the leading Russian companies. Its business includes three segments: mining, steel, and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned 'Risk Factors' and 'Cautionary Note Regarding Forward-Looking Statements' in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

SOURCE Mechel OAO