Brussels, BELGIUM – May 6, 2004 – Mechel Steel Group is informing that its subsidiary, Mechel Trading, has signed a protocol of intent on cooperation with Zhejiang Material Industries Group, the second largest consumer of metal products in China. Signing of this document took part in the course of the conference, EU-China Business Forum, held in Brussels.

Guided by its interests in developing its business on the key markets, Mechel Steel Group has signed a protocol of intent with Zhejiang Material Industries Group. The protocol proposes long-term and mutually beneficial cooperation between the companies.

Mechel Trading, which markets the products of Mechel Steel Group outside Russia, will deliver to Zhejiang Material Industries Group rolled steel, hardware products, and iron ore concentrate within the next few years.

The meeting between the parties took place during the conference, EU-China Business Forum, in Brussels. Wen Jiabao, Prime Minister of the People's Republic of China, headed the Chinese delegation.

"Today's event is very important for development of Mechel Steel Group's business on this market, which has a huge potential. And we realized opportunity to expand significantly our cooperation with the Chinese colleagues", noted Dennis Ruf, Vice President for Export of Steel Products of Mechel Steel Group, who represented the Company at the signing the protocol of intent between Mechel Trading and Zhejiang Material Industries Group.

Zhejiang Material Industries Group is the second largest consumer of metal products in China, with the annual import volume of about 2 million tons of rolled stock.

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Irina Ostryakova,
Director of External Communications
Phone: 7-095-258 1828
Fax: 7-095-258-1838
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.