MOSCOW, June 2 /PRNewswire-FirstCall/ -- Mechel OAO (NYSE: MTL), one ofthe leading Russian mining and metals companies, announces its board'sdividend recommendation.
On May 29, 2008, Mechel's Board of Directors recommended to the annualgeneral shareholders' meeting an annual dividend of 26.38 rubles per oneordinary share (approximately $1.12 per ADR(1)) for the 2007 fiscal year. Thetotal dividend the Board recommended to the annual general shareholders'meeting would amount to RUR 10,981,222,253.00 (approximately $465.6 million.The dividend payment is in line with Mechel's previously announced intentionto distribute to its shareholders not less than 50% of its consolidated annualnet profits under U.S. GAAP, beginning with the dividend paid for the year2005.
The record date for the Mechel's share -- and ADR-holders entitled toparticipate in the annual general shareholders' meeting and to receivedividends is June 4, 2008. The annual general shareholders' meeting will beheld on June 30, 2008, at the address: 1 Krasnoarmeyskaya St, Moscow, RussianFederation.
(1) According to the Russian Central Bank exchange rate of 23.5847 RUR/$as of May 29, 2008.
Mechel is one of the leading Russian companies. Its business includesthree segments: mining, steel, and power. Mechel unites producers of coal,iron ore concentrate, nickel, steel, rolled products, hardware, heat andelectric power. Mechel products are marketed domestically and internationally.
Some of the information in this press release may contain projections orother forward-looking statements regarding future events or the futurefinancial performance of Mechel, as defined in the safe harbor provisions ofthe U.S. Private Securities Litigation Reform Act of 1995. We wish to cautionyou that these statements are only predictions and that actual events orresults may differ materially. We do not intend to update these statements. Werefer you to the documents Mechel files from time to time with the U.S.Securities and Exchange Commission, including our Form 20-F. These documentscontain and identify important factors, including those contained in thesection captioned 'Risk Factors' and 'Cautionary Note RegardingForward-Looking Statements' in our Form 20-F, that could cause the actualresults to differ materially from those contained in our projections orforward-looking statements, including, among others, the achievement ofanticipated levels of profitability, growth, cost and synergy of our recentacquisitions, the impact of competitive pricing, the ability to obtainnecessary regulatory approvals and licenses, the impact of developments in theRussian economic, political and legal environment, volatility in stock marketsor in the price of our shares or ADRs, financial risk management and theimpact of general business and global economic conditions.
SOURCE Mechel OAO
