MMK announced its operational Trading update and H1 2008 results under Russian Accounting Standards

Key Operational Highlights

1. Steel output in H1 2008 increased by 8%YoY to 7,015 million tonnes as compared to H1 2007
2. Commercial steel products output increased by 8% to 6,434 million tonnes
3. Significant growth in prices for MMK’s entire product line
4. International pricing environment and strong domestic demand lead us to expect same price levels for Q3 2008

Mr Victor Rashnikov chairman of MMK’s board of directors said that “We are satisfied with our achievements for the first half of 2008. We continue to consistently strengthen our presence in the Russian market. It is the markets of Russia and CIS with which we connect our ambitious plans, reflected in our large-scale investment program. The current level of steel prices within Russia and globally confirms optimistic expectations for the year.”

He added that “We are continuing to follow our strategy of securing raw material supplies through new and ongoing projects, including the development of our own iron ore base and the Prioskol iron ore deposit and expansion of our partnership with Belon.”