MECHEL REPORTS ITS OPERATIONAL RESULTS FOR THE FIRST QUARTER OF 2007

05/04/2007


MOSCOW, April 5 /PRNewswire/ --

Mechel OAO (NYSE: MTL), one of the leading vertically-integrated mining
and metals companies, announced today its operational results for the first
quarter of 2007.


Product First quarter of 2007, First quarter of 2007 vs. first
thousand tonnes quarter of 2006, %

Coal 4,543 + 13
Coking Coal 2,223 0
Steam Coal 2,320 + 30
Iron Ore Concentrate 1,095 - 3
Nickel 4.1 + 22
Coke 959 + 82
Pig Iron 930 + 13
Steel 1,488 + 9
Rolled Products 1,274 + 19
Flat Products 112 + 28
Long Products 756 + 35
Semi-Finished Products 406 - 4
Forgings 21 + 47
Stampings 25 - 2
Hardware 158 + 18

Alexey Ivanushkin, Mechel's Chief Operating Officer, commented: "The
first quarter of 2007 witnessed growth in both of our segments - mining and
steel production. Coal production output growth was mainly due to an increase
in the production of steam coal, which exceeded production of coking coal in
our South Kuzbass plant for the first time in history. We also continued to
scale up our production of nickel given the unprecedented growth in prices
for nonferrous metals. During the quarter, the price of nickel exceeded
US$50,000 per tonne. In the steel segment, positive results were largely due
to the company's progress in increasing the share of concasted steel while
reducing costs by decreasing the amount of materials consumed in flat steel
production. We recently commissioned two concasters at our Chelyabinsk
metallurgical plant and our Romanian plant, Mechel Targoviste. We also
continued to increase production output of higher-value end products such as
long and flat products as well as hardware, while reducing the production of
semi-finished products. In stampings production, we concentrated on the
production from high-end quality steel, which brought about a slight decrease
in production volumes of plain stampings. To achieve this production, we
increased output of specialty steel forgings at our Chelyabinsk metallurgical
plant. The sharp increase in coke production was achieved due to the
acquisition of the Moscow Coke and Gas plant, as well as the commissioning of
a new coking battery at our Chelyabinsk metallurgical plant last year.


Mechel OAO
Irina Ostryakova
Director of Communications
Phone: +7-495-221-88-88
Fax: +7-495-221-88-00
irina.ostryakova@mechel.com

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.