Moscow, Russia – April 3, 2008 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that its has signed a partnership agreement with Danieli & C. Officine Meccaniche S.p.A. for the implementation of reconstruction and development projects for Mechel’s steel subsidiaries.

Danieli, an Italian-based world leader in developing technologies and manufacturing equipment for steel production, and Mechel OAO have signed a three-year partnership, which follows a successful working relationship over the past few years. According to the agreement, Danieli will provide Mechel with engineering and technical support to assist the implementation of Mechel’s development plans and ensure its competitive advantages.

The agreement becomes the basis for Danieli’s work to modernize and re-equip Mechel’s subsidiaries, including Chelyabinsk Metallurgical Plant, Russia; Mechel Targoviste, Romania; and Mechel Campia Turzii, Romania.

Danieli was selected as the equipment and technology provider on a competitive basis. Under the agreement, the partners plan to conduct senior executive meetings on a regular basis to identify areas of cooperation, jointly consider development plans, and discuss further measures based on Mechel’s priorities. Regular visits of specialists of each of the companies to discuss technical aspects of developing the projects are also planned. Danieli specialists will be engaged in preliminary engineering for reconstruction and development projects to improve efficiency surrounding preparation and decision making on such projects.

“We have been successfully working with Danieli for a long time, and now we have fortified our reliable partnerships. Danieli’s equipment already operates well at our subsidiaries, specifically two continuous billet casting machines at Chelyabinsk Metallurgical Plant. We are pleased to move to a higher level of cooperation with a world-class engineering and technology leader such as Danieli. We are confident that further cooperation between our companies will help us reduce costs and improve performance efficiency in our steel segment through the implementation of modern steel melting and casting technologies and modernization of our rolling production,” Mechel Management OOO Chief Executive Officer Vladimir Polin commented.