Moscow, Russia – July 17, 2007, – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced today its operational results for the first six months of 2007.

Mechel Management OOO Chief Executive Officer Vladimir Polin commented on the operational results for the first six months of 2007, “Mechel continued to improve output in both its mining and steel business segments in the first half of this year. The coal output increase was supported by the commissioning of our new mine, Olzherasskaya-Novaya, last year and by further operating efficiencies in our functioning mines and open pits. The iron ore concentrate output approximates last year’s level, which is consistent with the designed capacity of Korshunov Mining Plant, our iron ore concentrate producer. We took maximum advantage of the favorable pricing conditions at the London Metal Exchange and increased our nickel production.”

Mr. Polin added, “In our mining segment, we continued increasing the output of commercial value-added metal products. In our hardware segment we increased output of the products which are in demand on the market. In line with that effort, new equipment was commissioned at Beloretsk Metallurgical Plant to produce high-tensile stabilized reinforcing wire which is consumed in the construction industry. Finally, the increase we achieved in coke production was due to the acquisition of Moscow Coke and Gas Plant last year and the commissioning of the new coke battery at Chelyabinsk Metallurgical Plant.”