Changes in accounting policy

3 Mar 2008 10:02

OAO Severstal03 March 2008 Severstal holds analysts' seminar on changing its accounting policy for fixed assets to the Cost model Severstal today announces that it holds an analysts' seminar in Moscow on March3, 2008, to brief analysts on changing its accounting policy for fixed assetsfrom the Revaluation model to the Cost model. This change will be first time reflected in Severstal's IFRS financialstatements for the year ended December 31, 2007, due to be published on March17, 2008. Mikhail Noskov, CFO of Severstal group, commented: "This change brings us inline with all our peers, thus making it easier to compare steel companies likefor like. We believe investors will appreciate the ability to see our financialson the same cost basis as those of our competitors." As a result of this change the group's net assets will be decreased by theaccumulated amount of fixed assets revaluations net of tax effect and net profitwill be increased by the respective decrease of depreciation, earnings per sharewill be increased accordingly. This will also decrease minority shares in netassets of certain subsidiaries and foreign exchange differences on translationof financials into the reporting currency. There will be no effect on revenue orEBITDA of the Group. Severstal will publish the slides from the seminar on its website:www.severstal.com For further information, please contact: Dmitry Druzhinin, Severstal Investor RelationsOlga Antonova, Severstal Public Relations+7 495 540 7766 Dominic Fry/Tom Murray, Tulchan Communications+44 207 353 4200 This information is provided by RNS The company news service from the London Stock Exchange