Result of EGM

31 Aug 2007 08:34

OJSC Magnitogorsk Iron &Steel Works31 August 2007 August 31, 2007 Results of OJSC MMK's (LSE: MMK) Extraordinary Shareholders' Meeting On August 30, 2007, an extraordinary general shareholders' meeting of OJSC MMKwas held in the form of absentee voting. The Meeting took decisions on the following: 1. Payments of dividends on placed ordinary registered shares of OJSCMMK for the first half of 2007 in the amount of RUB 0.418 per share (inclusiveof tax) which corresponds to the recommendations of the Board of Directors. 2. Approval of a major transaction regarding the signing of a 10-year contractfor the supply of iron ore materials between OJSC MMK and ENRC Marketing,Switzerland. 3. Reorganization of OJSC MMK in the form of the merger of MMK-Kapital into OJSCMMK. ZAO MMK Kapital is a 100% subsidiary of OJSC MMK. At the same time ZAO MMKKapital owns 498,495,023 registered ordinary shares of OJSC MMK, whichrepresents 4.27 % of OJSC MMK's authorized capital. The issue of MMK-Kapital's merger into OJSC MMK was considered at the Meeting aspart of the MMK Group's structure reorganization and optimization programme. Thedecision taken by the shareholders will allow to avoid cross shareholding and toenhance the transparency of OJSC MMK's equity structure. On completion of the reorganization procedure all the shares held by MMK-Kapitalwill be cancelled. Following the approval by the Board of Directors of theReport on the Shares' Cancellation the number of OJSC MMK's placed shares willcomprise 11,174,330,000 registered ordinary shares, with the Company's Charterto be amended accordingly. This change of the authorized capital will result inthe proportional increase of the weight of share packages owned by OJSC MMKshareholders. Additional Information on MMK: The Magnitogorsk Iron and Steel Works OJSC ranks 20th among the world's largeststeel producers (according to IISI) and is one of the leaders of Russia's steelindustry (according to Chermet data). The Company is a large steel producing complex encompassing the entireproduction chain, from preparation of iron ore to downstream processing ofrolled steel. MMK turns out a broad range of steel products with a predominantshare of value added goods. In 2006 the Company produced 12.5 m tonnes of crude steel, and 11.3 m tonnes ofcommercial products. Sales under US GAAP amounted to USD 6.4 bn, with net profitstanding at USD 1.4 bn. Investor relationsEvgeny KovtunovTel.: +7 3519 24 93 55E-mail: kovtunov@mmk.ru Press serviceElena AzovtsevaTel.: +7 3519 24 90 82Fax: +7 3519 24 80 24E-mail: azovtseva@mmk.ru This information is provided by RNS The company news service from the London Stock Exchange