MECHEL TAKES THE FIRST POSITION AMONG RUSSIAN HARDWARE PRODUCERS

Moscow, Russia – December 17, 2009. – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces that according to the report
released by Prommetiz, a Russian association of hardware producers, in October
and November 2009 the two plants of Mechel’s steel division became the leaders
in hardware production among companies which are the members of the association.
In the beginning of December Prommetiz, a Russian association of hardware
producers, released a survey on hardware market development in Russia revealing
that in October and November 2009 the two plants of Mechel’s steel division –
Beloretsk Metallurgical Plant ОАО (BMK OAO) and Vyartsilya Metal Products Plant
ZAO (VMZ ZAO) jointly produced more hardware than any other Russian
companies-members of Prommetiz association. Thus, in Q4 2009 Mechel gained the
first position in Russia by hardware production volume.
In October and November BMK OAO produced about 63 thousand tonnes and VMZ ZAO
produced more than 18 thousand tonnes of hardware.
Prommetiz Association is the largest and most comprehensive Russian organization
which provides data and analytical surveys about hardware markets. The largest
hardware producers of Russia are the members of this organization.
Vladimir Polin, Mechel’s Senior Vice-President noted:
“This fact once again shows that our steel plants development strategy based on
technical modernization and mastering new products, which are in high demand on
the market, is correct. Even in the hardest crisis months of 2009 our Beloretsk
Metallurgical Plant continued developing new types of products. Thus, in this
April BMK OAO commissioned production of steel ropes with plastically drafted
strands. In 2008, VMZ ZAO started demonstrating record results in production.
The plant is still following this high standard.
Complex development of the company’s business segments and overall synergy as
the result of such activity are also very important. At the end of 2008 and in
2009 we paid much attention to improvement of our sales structures and,
particularly, strengthening our Mechel Service retail sales and service network.
Good sales performance and efficient cost reduction programme resulted in
recovery of our steel plants’ production capacity utilization up to the
pre-crisis levels, as they were provided with orders and had competitive cost
price. Fast recovery of our steel plants’ production capacity utilization
allowed us to gain the leading positions in production of high margin commercial
products including hardware”.

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Mechel OAO
Ilya Zhitomirsky
Phone: + 7 495 221 88 88
ilya.zhitomirsky@mechel.com
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Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and
electric power. Mechel products are marketed domestically and internationally.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.