In line with its corporate program of recreation and health promotion for children of its subsidiaries’ employees, Mechel OAO provides vouchers at a reduced price for the summer recreation of children of its subsidiaries’ employees. Over 33.5 million rubles (USD$1.43 million*) were allocated for this program in 2008, which enables 7,500 children to participate.

Out of that number, 500 children, whose parents work at Southern Kuzbass Coal Company, Korshunov Mining Plant, Yakutugol, Urals Stampings Plant, Beloretsk Metallurgical Plant, Izhstal, Moscow Coke and Gas Plant, Bratsk Ferroalloys Plant and other Mechel’s subsidiaries, were sent to Primorskiy children’s therapeutic and health promotional summer camp near the town of Gelendzhik at the Black Sea coast. The children at the summer camp received a variety of lessons and exercises, opportunities for sea bathing, and took part in various excursions, including visits to a dolphinarium.

Another 205 children went for recreation to the resort town of Kiten on the Bulgarian Black Sea coast. The children will spend 14 days in the town’s international sport and entertainment camp, called Campus. The tour to Bulgaria also includes a number of interesting excursions and events. Before taking a flight to Bulgaria, the children visited several historical sites in Moscow.

Over 6,700 children are spending their holidays in the children’s camps situated in the locations of Mechel’s subsidiaries. Each camp provides many opportunities for active recreation and health promotion.

In addition, Mechel provided 40 vouchers to resorts and will pay the fare for the children from large families as charity.

Mechel’s social welfare programs are intended to improve the standard of living of employees, veterans of work, and pensioners, and allow the company to achieve better operational and financial results. One of the most important aspects of Mechel’s social policy is to care for its families and children.

* According to the Russian Central Bank exchange rate of 23.4039 RUR/$ as of August 5, 2008.