Actuality March 14, 2008

Evraz Group S.A. (Evraz) acquires IPSCO Tubular Business at Swedish SSAB with the further resale of the part of assets owned by the USA, OAO TMK ("Pipe metallurgical company") for $1,2 bln. In 2009 Evraz will additionally sell the pipe company IPSCO assets for $500 mln. Thus, the net cost of Evraz transaction after resale the part of TMK assets totals $2,3 bln.

The company plans to carry out the transaction financing for credit facilities' account. Evraz financial advisors of transaction are Credit Suisse (Europe) Ltd. and Goldman Sachs International, the legal consultants – Cleary Gottlieb Steen & Hamilton LPP and Blake, Cassels & Graydon LPP.

"IPSCO acquisition transaction extends Evraz presence in North America in the high added value products' segment. This acquisition will also allow us to use power and infrastructural advantages of the region", commented the transaction Alexander Frolov, Evraz chairman of the directors' board and the main executive director, whose words are quoted in Evraz report.

According to the pipe company statement, TMK acquires 100% IPSCO Tubulars Inc.

and 51% NS Group Inc.

with the subsequent share increase in NS Group up to 100%. This transaction should be approved by regulatory bodies.

TMK financial advisor is UBS Securities LLC, the legal – Gibson, Dunn & Crutcher.

"Acquiring IPSCO pipe assets in the USA, TMK enters the market of North America, the largest world market of oil and gas and main trunk pipes", said Konstantin Semerikov, TMK director general, whose words are quoted in the press-release.

"Acquisitions also broaden the range of products produced by TMK, strengthening the stake of the high added value products".