Mechel pays dividends for the year 2005

Mechel, a leading Russian integrated mining and steel group, announced today that the company's dividend payment to shareholders will amount Ruble 12.73 per share (approximately $1.41 per one ADR) based on the operational results for the year 2005. Mechel also stated in the release that the dividend payment is in line with company's previously announced intentions to increase its dividend from 15 percent to 50 percent of net profits under US GAAP, starting with the payment made for year 2005.