28 June 2006

OAO Severstal completed floatation of additional stock issue

On June 22, 2006 Federal Service on Financial Markets (Russian State regulator of securities market) has registered a report on placement of additional share issue of OAO Severstal. According to the report the company allocated 378,929,863 ordinary shares, which comprises 95.32% of the issue announced on April 11, 2006.

Shareholders, who realized preemptive rights, have acquired 13,516,489 shares, which were paid in cash. The rest 365,413,374 shares were distributed to Frontdeal Ltd. in exchange of assets described in the attached Information Brochures.

The new number of shares outstanding of OAO Severstal is 930,784,663.