Updated April 24, 2008

   The world largest aluminium and alumina producer United Company Rusal announced it had completed the transaction about purchase of 25% plus one stock of Norilsk Nickel from ONEXIM Group. According to transaction terms ONEXIM Group receives 14% stocks of UC Rusal, as well as money recourses. ONEXIM Group representative enters UC Rusal directors’ board. The shares of other UC Rusal stockholders change pro rata.

   Rusal director general Alexander Bulygin commented the transaction. "We are pleased our purchase transaction of 25% plus one stock of Norilsk Nickel has been successfully completed. We have become the stockholders in one of the largest world producers of nickel, palladium, copper and platinum, and we have laid the firm foundation for UC Rusal development as diversified metals and mining corporation with huge growth potential. UC Rusal possesses large experience of managing metallurgical assets worldwide and the company intends to participate in strategy implementation of Norilsk Nickel development. We are going to establish mutual relations with the company management and other stockholders based on partnership principles and encourage the company value in favor of all stockholders".

   Rusal has proposed four candidates for Norilsk Nickel directors’ board: Victor Vekselberg, Oleg Deripaska, Alexander Bulygin, as well as Tye Bert as an independent director. It is assumed their candidatures will be considered within Norilsk Nickel stockholders’ meeting in June current year.

Thus, according to the transaction results Mikhail Prokhorov receives 14% of Rusal stocks instead of 11% planned. The parties do not reveal the transaction money component. However, the company has been estimated by the experts at around $7-8 billion in case it receives 11% of Rusal stocks.

   We will remind that Rusal and ONEXIM Group have already agreed in 2007 to purchase 25% plus one stock of Norilsk Nickel. It has been planed to complete the transaction in March current year. But now Mikhail Prokhorov remains the owner of Norilsk Nickel stocks part by mid-May through KM Invest fund coowned with Vladimir Potanin.

   According to the agreement between Potanin and Prokhorov, Vladimir Potanin Interros holding purchases 50% stocks in KM Invest owned by Mikhail Prokhorov. The latter, in his turn, buys up 27,5% stocks of Open Investments and 91% in Soglasie Insurance Company from KM Invest. Moreover, ONEXIM Group receives Rosbank Managing Company Ltd., as well as some geologic exploration assets. Thus, Vladimir Potanin receives two core KM Invest assets – 7,4% of Polyus Gold OJSC and 8% of OJSC Norilsk Nickel.