July 15, 2008
MMK Announces Operational Trading Update and H1 2008 Results under Russian Accounting Standards
Key Financial Highlights
ž Sales increased by 31% to RUR 121,730 billion (compared to RUR 93,220 billion in H1 2007) ž Operating income rose by 18% to RUR 32,003 billion (RUR 27,023 billion for H1 2007) ž Net income? grew by 18% to RUR 25,249 billion (opposed to RUR 21,353 billion H1 2007) ž Domestic sales share (in tonnage) grew to 69% in Q2 2008
Key Operational Highlights
ž Steel output in H1 2008 increased by 8% to 7,015m tons (compared to H1 2007) ž Commercial steel products output increased by 8% to 6,434m tons ž Significant growth in prices for MMKs entire product line ž International pricing environment and strong domestic demand lead us to expect same price levels for Q3 2008
Commenting on the results, Victor Rashnikov, Chairman of MMKs Board of Directors said: "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 programme.

The current level of steel prices within Russia and globally confirms optimistic expectations for the year.

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." Brief presentation of the RAS results is available in Russian at http://www.mmk.ru/rus/shareholders/presentations/index.wbp. MMK 2007 Annual report is now available at http://www.mmk.ru/eng/invrelations/year_reports/index.wbp.

It is a cute one. Consolidated accounts for the first 6 months of 2008 under US GAAP will be published on the week of 18 August 2008. ? Net of long-term investments revaluation.
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APPENDIX 1.

Production Major products output
Q2 2008 Q1 2008 change H1 2008 H1 2007 change 000 tons 000 tons % 000 tons 000 tons % Cast iron 2 448 2 613 -6,3% 5 060 4 652 8,8% Crude steel 3 418 3 598 -5,0% 7 015 6 476 8,3% Commercial products output 3 147 3 287 -4,2% 6 434 5 951 8,1%
Q2 2008 Q1 2008 change H1 2008 H1 2007 change
000 tons 000 tons % 000 tons 000 tons % Finished products output, including: 3 147 3 287 -140 6 434 5 951 483 Slabs and billets 248 431 -183 679 266 412 Long products 451 485 -34 936 935 1 Flat hot-rolled products 1 651 1 598 53 3 250 3 259 -9 Flat cold-rolled products 436 424 12 861 758 103 Downstream products
Tin plate 58 62 -4 119 125 -6 Galvanized steel 107 106 1 213 208 5 Galvanized colour-coated steel 44 42 3 86 91 -5 Band 84 82 2 166 168 -2 Formed section 51 39 12 90 102 -13 Pipes 17 18 -1 35 38 -3
In 2Q2008 MMK produced 3,418 thousand tons of steel and 3,147 thousand tons of metal products.

Minor changes to volume output are accounted for by the commencement/completion of planned repairs and maintenance works in these periods.

Domestic sales share (in tonnage) grew to 69% in 2Q2008. Crude steel and metal products output in 1H2008 grew by 8% against 1H2007 and amounted to 7,015 and 6,434 thousand tons correspondingly.

The increment totaled 483 thousand tons with domestic sales growing by 429 thousand tons, driving the domestic sales share to 66%.


2.

Average prices
The prices are indicative and do not consider either steel grade and quality characteristics or sales markets.

Average prices calculation is based on division of revenue by volume.
Q2 2008 Q1 2008 change H1 2008 H1 2007 change 000 tons 000 tons % 000 tons 000 tons % Slabs and billets 779 529 47,2% 621 390 59,1% Long products 911 627 45,3% 762 563 35,4% Flat hot-rolled products 876 599 46,3% 738 535 37,9% Flat cold-rolled products 903 642 40,7% 773 590 31,0% Downstream products
Tin plate 1 171 906 29,3% 1 033 837 23,3% Galvanized steel 1 108 894 23,9% 1 000 935 7,0% Galvanized colour-coated steel 1 451 1 218 19,1% 1 335 1 210 10,3% Band 976 715 36,4% 845 656 28,8% Formed section 1 038 823 26,1% 942 735 28,2% Pipes 1 010 735 37,4% 868 739 17,6%
In H1 2008 international markets saw significant price increases for metal products across the globe which lead to setting new steel price levels.

Following the global steel price increases we saw rising prices for products intended for the domestic market. Increase of MMK average price levels in 2008 compared to 2007 is conditioned by this global trend and price increases in all the sales markets of the company.

The average price increase for major MMK products varied from 20% to 40% in 2Q2008 and amounted to at least USD 250 per ton increase.

PLEASE SEE .XLS FILE ATTACHED Kind regards, Evgeny Kovtunov Head of MMK IR t.

+7 3519 24 9355 f.

+7 3519 24 9360