MMK.L Regulatory News (MMK)

25 May 2007 11:39

OJSC Magnitogorsk Iron &Steel Works25 May 2007 NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN This press release is not a prospectus but an advertisement. Investors shouldnot subscribe for any transferable securities referred to in this announcementexcept on the basis of information in the prospectus to be published by OJSCMagnitogorsk Iron & Steel Works ("MMK") in connection with the admission of GDRsrepresenting MMK's shares to the Official List of the U.K. Financial ServicesAuthority. 25 May 2007 OJSC Magnitogorsk Iron & Steel Works EXERCISE OF OVER-ALLOTMENT OPTION OJSC Magnitogorsk Iron & Steel Works ("MMK") today announces that in connectionwith offering (the "Offering") of 1,040,000,000 Ordinary Shares of MMK in theform of Ordinary Shares and Global Depositary Receipts ("GDRs"), Mintha HoldingLimited (the "Selling Shareholder") received notice on 24 May 2007 from ABN AMRORothschild, Morgan Stanley & Co. International plc and Renaissance Securities(Cyprus) of the exercise of the over-allotment option granted to them by theSelling Shareholder and referred to in the Prospectus issued by MMK on 24 April2007, in respect of 125,826,402 additional Ordinary Shares in the form of9,678,954 GDRs, which represent 95,5% of 131,820,000 shares originallydesignated for the over-allotment option. The over-allotment option is exercisedat the Offer Price of US$12.50 per GDR which is equal to the Offer Priceannounced on 24 April 2007. MMK will not receive any of the proceeds from the exercise of the over-allotmentoption. Following the exercise of the over-allotment option, the total size of theOffering will be US$1,120,986,851. Contacts: Press service: Elena AzovtsevaTel.: +7 3519 24 90 82Fax: +7 3519 24 80 24E-mail: azovtseva@mmk.ru Investor relations: Evgeny KovtunovTel.: +7 3519 24 93 55E-mail: kovtunov@mmk.ru This press release does not constitute or form part of any offer or invitationto sell, or any solicitation of any offer to purchase nor shall it (or any partof it) or the fact of its distribution, form the basis of, or be relied on inconnection with, any contract therefore. The offer and the distribution of thispress release and other information in connection with the listing and offer incertain jurisdictions may be restricted by law and persons into whose possessionany document or other information referred to herein comes should informthemselves about and observe any such restriction. Any failure to comply withthese restrictions may constitute a violation of the securities laws of any suchjurisdiction. This communication is only directed at (i) persons who are outside the UnitedKingdom or (ii) investment professionals falling within Article 19(5) of theFinancial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the"Order") or (iii) high net worth entities, and other persons to whom it maylawfully be communicated, falling within Article 49(2)(a) to (d) of the Order(all such persons together being referred to as "relevant persons"). The offeredsecurities are only available to, and any invitation, offer or agreement tosubscribe, purchase or otherwise acquire such securities will be engaged in onlywith, relevant persons. Any person who is not a relevant person should not actor rely on this communication or any of its contents. Stabilisation/FSA Any offer of securities to the public that may be deemed to be made pursuant tothis communication in any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State,the "Prospectus Directive") is only addressed to qualified investors in thatMember State within the meaning of the Prospectus Directive. This press release is not an offer for sale of, or a solicitation to purchase orsubscribe for, any securities in the United States. No securities of MMK havebeen, or will be, registered under the U.S. Securities Act 1933, as amended, andsecurities may not be offered or sold in the United States absent registrationor an exemption from registration thereunder. There were will be no public offerof the securities of MMK in the United States. Information contained in this press release does not constitute an offer or anadvertisement of any securities in the Russian Federation. The GDRs have notbeen and will not be registered in the Russian Federation and are not intendedfor "placement" or "public circulation" in the Russian Federation. This information is provided by RNS The company news service from the London Stock Exchange