Actuality February 19, 2008

   Mining and smelting group Evraz Group S.A. signed the agreement of purchase at the company Best Decade

of 51 % stocks of Chinese steel producer and trader Delong Holdings Limited. The sum of transaction totals $1,49 billion. Evraz became the first Russian company which entered

the growing and large-volume Chinese market.

   The transaction is subjected to approval by the regulating authority of China, according to the information of Evraz.

It is reported that the transaction is structured like this: at the first stage Evraz buys approximately 10% stocks of Delong at the price of 3,9459 Singapore dollars per stock, and within the next six months Evraz can exercise call option for purchase of 32,08% stocks at the same price.

When "some restrictions connected with current financial obligations" will lose effect, stockholders of Best Decade will sell 8,97% stocks to Evraz. As a result of these series of transactions Evraz will get 51,05% of Delong, and the share of Best Decade will decrease from 77,08 % to 26,03 %. According to the Singapore mergers and acquisitions legislation (Delong is listed at the Singapore stock exchange), Evraz will make the general buyout offer of Delong stocks from minority stockholders after call-option exercise at

the price of the transaction with Best Decade.

If owners of all stocks of Delong use offer, expenses of Evraz for purchase of the Chinese company will total $1,49 billion. Thus, 51 % stock holding costs $762 million.

   Evraz is not going to introduce essential changes in management of Delong after closing, the company office remains in Beijing.

The chairman of board of directors and chief executive officer of Evraz Alexander Frolov noted that it is the first investment of the company in Asian-Pacific region.

As he said, the controlling stockholder and the chairman of board of directors of Delong Din Ligo will be the important partner for Evraz on this market.

    Delong Holdings is one of three private metallurgical companies in China.

Its structure includes the plant with capacity of 2,4 million tons of metal products a year (it produces slabs and hot roll), Singapore trading company Dexin Steel, company Xingtai Xinlong Coal-Gas Ltd, which does coke gas recovery, and plant

Xingtai Delong Machinery producing pipes of big diameter.