GDRs Transaction Pricing

30 Nov 2006 18:15

O.A.O. Tatneft30 November 2006 THIS PRESS-RELEASE IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTOTHE UNITED STATES For immediate release OAO Tatneft announces the price at which GDRs representing the ordinary sharesunderlying former ADRs will be sold 30 November 2006 As announced by OAO Tatneft (the "Company") on 29 November 2006, Merrill Lynchcoordinated the offering of 35,569,220 ordinary shares of the Company (held byThe Bank of New York, as depositary) underlying the former American DepositaryReceipts which became "ineligible GDRs" as a result of the reorganization of theCompany's American Depositary Receipt facility undertaken in connection with theCompany's intention to terminate the registration of its securities with theU.S. Securities and Exchange Commission. The securities were offered in the formof ordinary shares as well as Global Depositary Receipts ("GDRs") representingthose shares outside the United States of America in reliance on Regulation Sunder the U.S. Securities Act of 1933. As a result of the offering, the securities will be sold at a price of US$ 95.00per GDR (each GDR represents 20 ordinary shares of the Company). Followingsettlement of the sales, which is subject to certain conditions, the Companyexpects that the proceeds from the sale of the shares, after deductions andwithholdings relating to the sale, will be made available to the holders ofineligible GDRs pursuant to the terms of the Amended and Restated DepositAgreement relating to the Company's depositary receipts facility. For more information, please contact: Media UK Greg Quine Jon Simmons Andrew Dowler Financial Dynamics, London +44 (20) 7831 3113 Russia Michael Guerin Financial Dynamics, Moscow +7 (495) 795 0623 Investor Relations: Vasily MozgovoiOAO Tatneft+7 (495) 980 5226 Forward-looking statements: This press release contains certain forward-lookingstatements of OAO Tatneft. OAO Tatneft can give no assurance that any of theevents mentioned in such statements will occur, or as to the precise timing oftheir occurrence. Other important legal notices: Merrill Lynch is acting for OAO Tatneft as afinancial adviser, and will not be responsible to anyone other than OAO Tatneftfor providing the protections afforded to clients of Merrill Lynch or forproviding advice in relation to the matters contained in this announcement orany matter concerning the transaction described herein. This press release is for information only and does not constitute an offer tosell, purchase, exchange or transfer any securities or a solicitation of anysuch offer in the United States or any other jurisdiction. The securities referred to herein have not been and will not be registered underthe U.S. Securities Act of 1933, as amended (the "Securities Act"), and may notbe offered or sold in the United States absent registration or an exemption fromregistration under the Securities Act. Neither OAO Tatneft nor any otherparticipant in the transactions described herein intends to register anysecurities under the Securities Act or with any securities regulatory authorityof any state or other jurisdiction in the United States in connection with thetransaction described in this announcement, and there will be no public offeringof the securities in the United States. This press release is not a public offer or advertisement of any securities inthe Russian Federation, and is not an offer, or an invitation to make offers, topurchase, sell, exchange or transfer any securities in the Russian Federation orto or for the benefit of any Russian person or entity. Information contained inthis document is not an offer, or an invitation to make offers, sell, purchase,exchange or transfer any securities in the Russian Federation or to or for thebenefit of any Russian person or any person in the Russian Federation, and doesnot constitute an advertisement of any securities in the Russian Federation. The GDRs have not been and will not be registered in the Russian Federation andare not intended for "placement" or "public circulation" in the RussianFederation. This announcement is only addressed to and directed at persons in member statesof the European Economic Area who are "qualified investors" within the meaningof Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC). Offerswere made only to persons falling within Article 19(5) and/or 49(2) of theFinancial Services and Markets Act 2000 (Financial Promotion) Order 2005, asamended. This information is provided by RNS The company news service from the London Stock Exchange