Cancels Treasury Shares

5 Dec 2007 10:32

OJSC Magnitogorsk Iron &Steel Works05 December 2007 Press Release Magnitogorsk 05.12.07 Magnitogorsk Iron and Steel Works Cancels Treasury Shares Magnitogorsk Iron and Steel Works (MMK) announces cancellation of treasuryshares representing 4.27% of its authorized capital. The cancellation took placeas the result of reorganization of MMK Group of companies by means of merging ofa subsidiary of MMK Group - ZAO MMK-Kapital - into the parent company. The merger was approved at MMK Extraordinary General Shareholders' Meeting whichtook place on August 30, 2007. The decision was taken in order to optimize theMMK Group's structure. Pursuant to the terms of the ZAO MMK-Kapital Merger Agreement, 498,495,023registered ordinary shares of OJSC MMK (corresponding to 4.27% of the parentcompany's authorized capital ) formerly owned by the subsidiary, were cancelled. Following the cancellation the number of MMK's placed ordinary shares changed to11,174,330,000, which lead to a proportionate increase of the weight of sharesowned by current shareholders of MMK. The move allowed to avoid cross holding of shares. Upon approval of the Report on the Results of the Shares' Cancellation by theMMK Board of Directors on 14.12.2007, necessary changes will be made in theCharter of MMK. About MMK OJSC Magnitogorsk Iron & Steel Works ("MMK") ranks 20th among the world'slargest steel producers (Source: IISI) and is one of the largest steel producersin Russia (Source: Chermet). It accounts for 17% of total Russian output ofsteel products (Source: Chermet). MMK is a major steel mill with a fullyintegrated production cycle, from the preparation of iron ore through todownstream processing of steel. MMK believes that is produces the broadest rangeof steel products among Russian and CIS steel producers, and has a particularfocus on high- value added steel products. In 2006, the Company produced 12.5million metric tons of crude steel and shipped 11.3 million metric tons ofcommercial steel products. Revenue of OAO MMK and its consolidated subsidiariesin 2006 in accordance with US GAAP totaled 6.4 billion USD and net income was1.4 billion USD. Contact persons for further information: Press-secretary:Elena Azovtsevam: +7 3519 24 90 82E-mail: azovtseva@mmk.ru Head of Investor RelationsEvgeny Kovtunovm: +7 3519 24 93 55E-mail: kovtunov@mmk.ru This information is provided by RNS The company news service from the London Stock Exchange