MOSCOW, August 28 /PRNewswire/ --

Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals
companies, announces acquisition of 100% stake in the charter capital of
Bratsk Ferroalloy Plant OOO (BFP OOO). The acquisition is in line with
Mechel's strategy aimed at developing its steel segment, improving its
operational efficiency, reducing production costs, and leveraging synergies
within its business.

Mechel OAO acquired 100% stake in the charter capital of Bratsk
Ferroalloy Plant. The plant's revenues for 2006 on a Russian Accounting
Standards basis amounted to RUR1.3 billion (approximately US$51.0 million)
and net profit was approximately RUR151.0 million (approximately US$6.0
million). The plant's net assets on a Russian Accounting Standards basis
amounted to about RUR4.2 billion (approximately US$165.0 million) as of the
end of 2006.

Bratsk Ferroalloy Plant is the largest enterprise in Eastern Siberia
producing high grade ferrosilicon. Located in the Irkutsk Region, the plant
was founded on the basis of the crystalline silicon workshop of Bratsk
Aluminium Smelter in 2003 and has advantageous geographical position and
operates within stable markets. The plant's ferrosilicon output totals 84
thousand tonnes annually and comprises a 13% market share of Russia's total
output. The plant's share in the Russian ferrosilicon domestic supplies
market amounted to 16% in 2006 and increased to 20% in the first quarter of
2007. The plant's share in the Russian ferrosilicon export market amounted to
11% in 2006. The main competitive advantage of the plant is its access to
inexpensive electric power supplied by Irkutskenergo OAO.

Ferroalloys are used by steel melting enterprises, including Mechel's
steel subsidiaries. Bratsk Ferroalloy Plant's operating within Mechel group
of companies will enable the plant to significantly reduce its production
costs and improve its performance by utilizing the synergies between Mechel's
raw material, steel, and power business segments.

Mechel Management OOO Chief Executive Officer Vladimir Polin commented on
the transaction, "We continue to implement our strategy to improve the
efficiency of our steel segment. The acquisition of Bratsk Ferroalloy Plant
enables Mechel to increase its competitiveness by entering new markets and
operating within the steady business of ferroalloy production. Developing the
ferroalloy business, in which energy costs are dominant, will enable us to
gain synergetic effect both due to the plant's consumption of Mechel's own
coal and its supplies of ferroalloys to our steel subsidiaries for subsequent
processing into high margin marketable products."

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.