Updated April 21, 2008

   According to the IFRS (International Financial Reporting Standards) 2007 reporting results OJSC Raspadskaya net profit has upped by 30%, to $240,2 million in 2007 as compared to 2006. The company stockholders – management and Evraz Group – receive more than 60% of these facilities as dividends. The analysts consider that such generosity testifies Raspadskaya does not have plans concerning it assets increase.

   According to the OJSC Raspadskaya published reporting by IFRS standards, the company profit has upped by 67,2%, to $784 million in 2007 as compared to 2006. Thus, EBITDA grew 1,8 times, to $491 million, and EBITDA return totaled 63%. The net profit has increased by 30%, to $240,2 million as compared to 2006. When commenting the year results, Raspadskaya head Gennady Kozovoy has marked the production growth by 28%, and has promised "to fix the company positions in 2008" and attain the best indices by the year results with the favorable price situation for the cocking coal at the world markets and Russia in particular.

   Raspadskaya comprises three mining enterprises, the mine under construction, enrichment factory, and also the set of companies of the transport and production infrastructure. Coal mining was 13,55 million tons in 2007. Corber Enterprises Limited owns 80% common stocks, which is owned by the company managers headed by Gennady Kozovoy and Evraz Group pari passu. Other stocks are traded at RTS.

   Investors had estimated the reporting as positive – Raspadskaya stocks quotations at RTS grew by 6,4% at the index growth by 1,18%, the company capitalization attained $6,7 billion. Evraz Group securities quotations grew by 4,18% in London. The polled investment analysts mark the exceeding of some Raspadskaya financial indices by 7-10% as compared to consensus-forecast. "The company has demonstrated the extremely high return by EBITDA, and has showed the best result among all Russian coal enterprises", says Denis Gorev from Finam Investment Company. According to his opinion, Raspadskaya continues to show high financial results, and the prices’ increase for the cocking coal at the foreign markets contributes to this. Within the previous year only the export prices for coal have upped by 26%, to $76 per ton.

   Raspadskaya directors’ board considered it necessary to share the company success with its stockholders. Raspadskaya has earlier obligated to pay no less than 25% from the net consolidated income by IFRS as dividends. However, this year the coal company directors’ board has recommended the stockholders to pay the excess dividends for 2007 in size of RUR 3,75 per one stock. If stockholders follow the recommendation, the outpayments will attain RUR 3,9 billion ($166,88 million) with the account of the already paid interim dividends. It is 2,5 times more than in 2006, and totals around 64% from the company net profit.

   In the opinion of Metropol Financial Company analyst Maxim Khudalov, such generous dividends testify Raspadskaya is not intended to continue growing due to mergers and acquisitions. On the other hand, in the expert’s opinion, it is not important for Evraz Group to invest funds in the company itself, but to redirect profit to its own projects, especially after the collapsed amalgamation of Raspadskaya with Yuzhkuzbassugol. Denis Gorev specifies that Evraz Group realizes the set of large investment projects, including transactions completion for foreign assets purchase that requires big investments.