Orsk, Russia – March 16, 2005 – The Board of Directors of Southern Urals Nickel Plant OAO, a subsidiary of Mechel, has appointed Gennady Ovchinnikov as acting General Director.

Biography:

April 2004 - March 2005 – Leading Specialist, Technical Department of Mechel OAO.

2001-2004 – Head of Concentration and Agglomeration Department, Head of Mining Technology Section, Zapsib OAO (West-Siberian Integrated Metallurgical Works).

1974-2001 – Various operational and executive positions at the Sintering Plant of Kuznetsk Integrated Metallurgical Works OAO, including positions of the Chief Engineer, Plant Manager, Head of the Scientific and Technical Information Department, and Head of the Marketing Department.

Gennady Ovchinnikov holds a master's degree in Mining Engineering and Technologies from the Magnitogorsk Institute of Mining and Metallurgy; and a Doctorate in Technical Sciences from the Moscow State Institute of Steel and Alloys.

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Mechel OAO
Irina Ostryakova
Director of Communications
Phone: 7-095-258-18-28
Fax: 7-095-258-18-38
irina.ostryakova@mechel.com

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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.

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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 Steel Group, 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 Steel Group files from time to time with the U.S. Securities and Exchange Commission, including our Form F-1. 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 F-1, 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.