MOSCOW, July 2 /PRNewswire/ --

Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals
companies, announces the results of its Annual General Shareholders' Meeting.

The Annual General Shareholders' Meeting adopted the following
resolutions:

-- To approve a dividend of RUR 19.70 per one ordinary registered
       book-entry share (about USD 2.27 per one ADR (1)) based on the
       company's operational results for 2006. The total dividend recommended
       by the Board of Directors to the Annual General Shareholders' Meeting
       amount to RUR 8.2 billion (approximately US$316.0 million (1)), which
       complies with Mechel's previously announced intention to allocate not
       less than 50% of its net income under US GAAP to pay dividends
       beginning from the payment of the dividends for fiscal year 2005.

    Dividends should be paid out by bank transfer not later than December
    31, 2007.

    (1) Calculated at the exchange rate of the Russian Federation Central
        Bank as of June 10, 2007, amounting to 25.98 Russian Rubles per one 
        US Dollar.

    -- To elect the following people to Mechel's Board of Directors (BoD):
      
          -- Igor Zyuzin;
          -- Alexey Ivanushkin;
          -- Vladimir Polin;
          -- Roger Gale (independent director);
          -- A. David Johnson (independent director);
          -- Serafim Kolpakov (independent director);
          -- Alexander Yevtushenko (independent director);
          -- Valentin Proskurnya (independent director);
          -- Alex Polevoy.

       The number of Directors on the Company's Board remains unchanged from
       the last year. Independent directors, as before, make up the majority
       in Mechel's BoD.

    -- To approve Mechel's annual report and annual Russian financial
       statements and report, including profit and loss account, to elect
       Mechel's Review Commission, and appoint BDO Unicon ZAO, Moscow, as its
       auditor for its Russian statutory accounts.
      
       During the first meeting of the Board of Directors in 2007 that
       followed the Annual General Shareholders' Meeting, Valentin Proskurnya
       was elected as Chairman of Mechel OAO.

       Mr. Proskurnya has more than 37 years of experience in engineering,
       financial and managerial sectors of the coal industry. He has been a
       member of the Board of Directors of Mechel OAO since 2003 and served 
       as an independent member of the Board of Directors since 2004. Mr.
       Proskurnya was a member of the Board of Directors of the Magnitogorsk
       Iron and Steel Works from 2004 to 2005. Previously, he was Deputy CEO
       of Mechel Trading House OOO, CEO of Mechel Trading House OOO, and 
       First Deputy Director of Southern Kuzbass Coal Company. In 1996, by 
       the Decree of the President of the Russian Federation, he was given a 
       title of the Honored Economist of the Russian Federation. Mr. 
       Proskurnya was awarded by the Russian Government with the badge 
       "Miner's Honor" of all three grades. Mr. Proskurnya holds a degree in 
       Labor Economics from the Higher School of Trade Unions.

       The Board of Directors also adopted the resolution to convene the
       Extraordinary General Shareholders' Meeting on August 6, 2007. The
       meeting agenda shall include the matters of introducing modifications
       and additions into the Company's Charter; approval of the Bylaw on the
       Collegial Executive Body (Management Board) of Mechel OAO; approval of
       the new version of the Bylaw on the Sole Executive Body (CEO) of 
       Mechel OAO; approval of transactions of interest; and approval of the 
       new version of the Bylaw on Remuneration to Members of the Board of
       Directors of Mechel OAO and Compensation of Their Expenses Connected
       with Their Execution of Functions of Members of the Board of Directors.



Mechel is one of the leading Russian mining and metals companies. Mechel
unites producers of coal, iron ore, nickel, steel, rolled products, and
hardware. Mechel products are marketed domestically and internationally.

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.