Mechel Prices Its Initial Public Offering

Mechel Prices Its Initial Public Offering
Russian Metals and Mining Company Enters International Equity Markets 


MOSCOW, Oct. 29  /PRNewswire-FirstCall/ -- Mechel Steel Group OAO (NYSE:MTL), a
Russian metals and mining company, announced today the pricing of its Initial
Public Offering of 13,875,691 American Depositary Shares (ADSs), each
representing three shares of Mechel's common shares, at an offer price to the
public of US$21 per ADS.

Of the ADSs offered, 11,100,553 were sold by the company and 2,775,138 by its
core shareholders, in total representing 10% of Mechel's equity on a post-
issuance basis.

The Sole Global Coordinator and Sole Bookrunner for the offering is UBS Limited
and the Co-Lead Managers of the offering are J.P. Morgan Securities Ltd. and
Morgan Stanley & Co. International Limited.  The Co-Manager for the offering is
Troika Dialog (Bermuda) Ltd.  A copy of the prospectus is available from UBS
Securities LLC, 299 Park Ave., 25th Floor - Prospectus Dept., New York, NY
10171.

   ***

   Irina Ostryakova,
   Director of External Communications
   Phone: [phone]
   Fax: [phone]
   

   ***



Mechel is a Russian metals and mining company, uniting producers of steel,
rolled products, hardware, coal, iron ore concentrate, and nickel.  Mechel
products are marketed domestically and internationally.

This document is only being distributed to and is only directed at (i) persons
who are outside the United Kingdom or (ii) to investment professionals falling
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2001 (the "Order") or (iii) high net worth entities, and other
persons to whom it may lawfully be communicated, falling within Article 49(2)
of the Order (all such persons together being referred to as "relevant
persons").  The ADSs are only available to, and any invitation, offer or
agreement to subscribe, purchase or otherwise acquire such ADSs will be engaged
in only with, relevant persons.  Any person who is not a relevant person should
not act or rely on this document or any of its contents. Stabilization/FSA.

This press release is not a public offer or advertisement of securities in the
Russian Federation, and is not an offer, or an invitation to make offers, to
purchase any securities in the Russian Federation. 

DATASOURCE: Mechel Steel Group OAO



CONTACT: Irina Ostryakova, Director of External Communications,

[phone], Fax: [phone], 

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