MMK.L Regulatory News (MMK)

23 May 2007 12:22

OJSC Magnitogorsk Iron &Steel Works23 May 2007 Iskenderun Republic of Turkey May 23, 2007 Magnitogorsk Iron and Steel Works Announces Plans to Launch a Metal WorksConstruction Project in Turkey. Magnitogorsk Iron and Steel Works (MMK) together with Atakas Group are planningto build a metal works in the Republic of Turkey with a capacity of 2.6 milliontons of metal products per year. The new works will specialize in the production and processing of hot andcold-rolled sheet as well as galvanized and color-coated rolled steel products. The project site is in the industrial areas of Iskenderun and Istanbul. Theproject is expected to take more than three years to realize and has theapproximate cost of $1.1 billion. Commenting on the decision, Viktor Rashnikov, Chairman of the Board ofMagnitogorsk Iron and Steel Works, said: "The dynamic and rapidly growing marketof Turkey is not fully sufficient in metal production capacities and is therebyattractive to steel producers. The implementation of this project is fully inline with the strategy of MMK, which includes expansion in growing markets. Theproject will contribute to increasing the strength of MMK's position on theglobal steel market." Rejep Atakas, CEO of Atakas Group, said: "We are pleased with the opportunity toimplement a joint project with a leading global steel producer such as MMK. I amcertain that the dynamic development of the Turkish economy, MMK's long-standingexpertise in steel production together with the strong position of Atakas Groupon the Turkish market will ensure the success of the project." About MMK: OJSC Magnitogorsk Iron and Steel Works ("MMK") ranks the 20th among the world'slargest steel producers (Source: IISI) and is one of the largest steel producersin Russia (Source: Chermet). MMK is a major steel mill with a fully integratedproduction cycle, from the preparation of iron ore through to downstreamprocessing of steel. MMK produces a broad range of steel products and has aparticular focus on steel products with high added value. In 2006, MMK produced12.5 million metric tons of crude steel and shipped 11.3 million metric tons ofcommercial steel products. In 2006, net revenue in accordance with US GAAP was$6.4 billion and net income was $1.4 billion. MMK shares are traded on the London Stock Exchange ("MMK"), RTS ("MAGN") andMICEX ("MAGN"). About Atakas Group: Atakas Group of Companies is mainly involved in activities concerning importedcoals. The Group has sieving and packing facilities with an annual capacity of 2million tons located in Iskenderun, Marmara, and Blacksea regions. The Groupalso owns two factories for production of pressed coals of European standardswith an annual production capacity of 500.000 tons located in Payas OrganizedIndustrial Zone and Gebze Organized Industrial Zone. Atakas Group of Companieswas also involved in production and marketing of round construction ironsbetween 1975 and 2005, and has initiated construction works of a wharf inDortyol district of Hatay in 2007. MMK: Press service: Elena AzovtsevaTel.: +7 3519 24 90 82Mob.: +7 902 891 34 02Fax: +7 3519 24 80 24E-mail: azovtseva@mmk.ru Investor relations: Evgeny KovtunovTel.: +7 3519 24 93 55E-mail: kovtunov@mmk.ru Atakas Group: Press service: Ihsan ARTel.: 0 326 755 69 46Mob.: 0 532 281 54 85Fax: 0 326 755 69 48E-mail: ihsanar@superonline.com Erol KurtarTel.: 0 326 613 00 82Mob.: 0 532 206 08 59Fax: 0 326 613 25 53E-mail: erolkurtar@atakas.com.tr Some of the information in this press release may contain forward-lookingstatements regarding future events or the future financial performance of MMK. Aforward-looking statement is any statement that does not relate to historicalfacts and events and can be identified by the use of terms such as "expect","believe", "anticipate", "estimate", "intend", "will", "could", "may" or"might", the negative of such terms or other similar expressions.Forward-looking statements reflect MMK's current views of future events, arebased on MMK's assumptions and involve known and unknown risks, uncertaintiesand other factors that may cause MMK's actual results, performance orachievements to be materially different from any future results, performance orachievements expressed or implied by these forward-looking statements. Theoccurrence or non-occurrence of an assumption could cause MMK's actual financialcondition and results to differ materially from, or fail to meet expectationsexpressed or implied by, such forward-looking statements. Except as required bylaw, MMK does not intend to update these forward-looking statements to reflectevents and circumstances occurring after the date hereof or to reflect theoccurrence of unanticipated events. This information is provided by RNS The company news service from the London Stock Exchange