Updated April 3, 2008

   Evraz Group entered the number of the industry world leaders due to the active assets purchase.

Its EBITDA ratio attained $4,25 billion in 2007 (growth by 61%), and it can exceed $6 billion this year.

The company profit grew by 54,5% to $12,8 billion for the year, net profit attained $2,144 billion (growth by 56%). And profitability by EBITDA was 33%.

   Evraz Group entered the top four of the most expensive companies of steelmaking industry with $30,6 billion capitalization. Only Arcelormittal ($116,5 billion), Posco ($42,79 billion) and Nippon Steel ($36,05 billion) are more expensive than the steel holding.

   The financial indices grew due to the previous year acquisitions and steel price growth as it was said in the company statement. Previous year the company closed the transactions which comprise the purchase of Oregon Steel (the USA), consolidation of Highvel Steel & Vanadium (Republic of South Africa) controlling stock interest and purchase of 50% Yuzhkuzbassugol.

   Severstal and MMK (Magnitogorsk Iron and Steel Works) have already published their 2007 reporting.

EBITDA profitability of both companies is lower than Evraz has: 24% and 28% respectively. Novolipetsk Steel (NLMK) would hardly outstrip by this ratio, as Deutsche Bank forecasts it at the 43% level. But previous year Evraz Group has already outstripped all Russian competitors in absolute terms by EBITDA volume, mark the Uralsib and Trust analysts Dmitry Smolin and Alexander Yakubov. NLMK's EBITDA is forecasted at the $3,2 billion level.

   In Evraz Group consider that in 2008 everything would be far better.

As it is said in the company press-release, according to the first half-year Evraz profit should grow by 60-65% (to $9,6-9,9 billion) as compared to the analogical period in 2006, and EBITDA would be around $3 billion. Evraz Group president Alexander Frolov was quoted as say ing that steel, as well as primary products, rise

in price and China has started to export less, so there is steel deficit at

the market of around 20 million tons.

   Evraz Group forecasts comprise the results of Claymont Steel (Evraz has purchased it at the end of 2007) and parts of the Ukrainian assets that have been purchased at Privat Group, explained the company representative.

And in the first 2008 half-year Evraz plans to close such transactions as the purchase of Chinese Delong Hodings and the assets of Canadian Ipsco.

Yakubov marks that according to the 2008 results Evraz Group EBITDA can attain $6,5 billion. Smolin supposes it is already the "sign of truly global company". In 2007 EBITDA of Nippon Steel (the second largest company in the industry) was $6,8 billion, and Baosteel – $4,5 billion.

   Smolin marks that now Evraz Group occupies the second place in the industry on the food diversification after Arcelormittal and the fourth place by capitalization due to its purchases.

According to his opinion, this year Evraz Group has all chances to enter the first ten of the world largest metallurgical companies.

For 2008 Evraz Group forecasts to produce 18,9 million tons of steel, while Delong Hodings and Ipsco plants can produce only 23 million tons of steel. Due to Sparrows Point purchase Severstal will attain the level of 24,2 million tons of steel a year. According to 2005 results Baosteel occupied the fifth place in the world with 22,5 million tons of steel a year.

   Globalization concerning Evraz Group has also the reverse side, as Smolin marks that the net income turned out 8% down than it had been forecasted. It is related to the effective income tax rate that totaled 31% over the foreign assets in 2007, as

the analyst considers. The company has the large net debt at $6,28 billion in terms of purchases. But the comp any represent

ative underlines that it is a convenient level with such EBITDA.

   Evraz Group is one of the largest Russian steel and mining companies.

In 2007 the company produced 16,33 million tons of steel, 3,5 million tons of iron-ore concentrate.
The main shareholders are Lanebrook Limited (the company is managed by Roman Abramovich, Alexander Abramov, Alexander Frolov and their partners) – 72,9%, Igor Kolomoyskiy – 9,7%.