MEZHDURECHENSK, Russia, September 10 /PRNewswire/ --

Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals
companies, announces that the Company has commissioned a unique backhoe
hydraulic excavator with an 11 cubic meter bucket, Liebherr R-994, at
Krasnogorsk open pit mine of its coal mining subsidiary, Southern Kuzbass
OAO.

This is the second excavator of that type put into operation at
Krasnogorsk open pit mine in 2007 in line with the technical re-equipment
program being implemented at Southern Kuzbass OAO. The cost of the newly
commissioned equipment is more than RUR80.0 million (over US$3.0 million). A
similar machine was also put into operation and successfully operates at
Sibirginsk open pit mine.

The new machine is designed for complete coal seam extraction with an
open cast method of coal mining, especially at lower levels where space is
confined. This will enable operational losses of coal to be reduced by 2% to
4%. Operation of the excavator's backhoe (Liebherr R-994) requires half the
number of workers as compared with electric drive excavators, which enables
increased labor productivity and reduced coal production costs. In addition,
the backhoe technology enables operations in complicated mining and
geological conditions eight meters below the excavator's standing level.

The new excavator's cab provides conditions suitable for highly
productive work and conforms to the sanitary standards and requirements. The
excavator team was formed of the best employees of the open pit mine and
received additional two month training with the involvement of the
manufacturer representatives, which allowed workers to learn the construction
of the excavator and the specificity of its operation.

The renewal of equipment at Southern Kuzbass OAO is a part of Mechel's
long-term capital expenditure program, which is aimed at increasing coal
output to 25 million tonnes in 2010. In line with Mechel's plans, investments
in developing Southern Kuzbass will amount to approximately US$700.0 million
in the period from 2007 to 2011. The next significant equipment purchase, a
similar model of an excavator, is being prepared for commissioning at
Olzherassk open pit mine of Southern Kuzbass OAO.

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.