35%.com

Mechel Steel Group is one of the leading Russian metals and mining
companies. Securities and Exchange Commission, including our Form
F-1. Techalloy
Company Inc.

resisting braided

Mechel previously owned 62.S . Arcelor employed 98,000
employees at the end of 2003 in over 60 countries.

inconel wire

We
wish to caution you that these statements are only predictions and that actual
events or results may differ materially .
Techalloy Company, Inc.
The transfer of ownership is effective from February 9th, 2005. Its main
markets are the process, automotive, construction and food processing
industries.

redraw alloy

"We are happy that Mechel has increased its stake in Izhstal to 87.

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 Steel Group, as defined in the safe harbor
provisions of the U. We refer you to the documents Mechel Steel Group files from time
to time with the U.

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is a company within the Arcelor Group's Stainless
Steel Sector, specialized in stainless steel and nickel alloy long
products.

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35%.Ostryakova@mechel.

Ugitech S.

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IZHEVSK, Russia, Mechel (NYSE: MTL) has
increased its stake in Izhstal OAO to 87.99% was
acquired for approximately $15 .
With 170 employees and sales of 93 million US dollars in 2004,
Techalloy Company, Inc.

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Izhstal 's quality
management system complies with the international standards: ISO 9001:2000 and
AD WO /TRD 100.S.

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ARCELOR: Agreement Signed for the Sale of Techalloy Company Inc. to Central Wire

Techalloy Company, Inc.
Central Wire is a Canadian producer of stainless steel and alloy
drawn wire with 2 production plants in Canada and 2 others in the USA.2 million tons of steel in 2003, the company is a major player in
all its main markets: automotive, construction, household appliances
and packaging as well as general industry.

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is the leading stainless steel and alloy wiredrawer in
the NAFTA zone , with more than 20% of the North American market.

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We are already implementing a number of projects to improve
production at Izhstal and further increase the competitiveness of its
products.
Central Wire is one of the leading North American wiredrawers.
Arcelor is a leading force in the transformation of the global
steel industry.

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Mechel Wins Auction for an Additional Stake in Izhstal

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, owned by Arcelor through its Ugitech S. is specialized in the production of stainless
steel and nickel alloy wire and of welding electrodes.

braided wires

welded iwc

With a turnover of 25.

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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 F-1, 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. based company with its head office in Mahwah
(New Jersey) and production plants in Baltimore, Perris and Union. contributes to the Stainless
Steel Sector's strategy of refocusing on its European and Brazilian
Flat Products core businesses.

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7 million thus increasing our stake in Izhstal
OAO to 87.

Business Editors

LUXEMBOURG----Arcelor has signed an
agreement with Central Wire for the sale of Techalloy Company, Inc. In 2004, the business generated sales in the range of 650
million euros and a volume of approximately 208,000 tons.

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This will ultimately benefit both Mechel and Izhstal, as well as the
Republic of Udmurtia," Mechel's CEO , Vladimir Iorich, said.S.
shares.

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The Company unites producers of steel, rolled products, hardware ,
coal, iron ore concentrate, and nickel. Private Securities Litigation Reform Act of 1995. We do not intend to update these
statements.

ecd wiretech

35%
allowing us to consolidate more of the anticipated results of our upgrade
strategy there.

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Today's stake of 24. Mechel Steel Group products are
marketed domestically and internationally. The company places
its commitment to sustainable development at the heart of its strategy
and ambitions to become a benchmark for economic performance, labour
relations and social responsibility in the world of steel.

stub straightened

produced approximately 13,400 tons of drawn
wire in 2004, mainly for the automotive, food processing, engineering
and aeronautics markets.A.

redraw wire

Izhstal produces rolled products and calibrated products from
constructional, constructional alloyed, tool, and high speed steel; hardware
products, such as jewel steel, cold rolled bands, calibrated hardware
products, stainless welding wire, steel shaped profiles of high precision,
cold rolled and flattened bands, stampings, and forgings.

Mechel Steel Group OAO
Irina Ostryakova
Phone: 7-095-258-18-28
e-mail: Irina.
subsidiary, is a U.9 billion euros and shipments of
40.