16 August 2006

Dividend Declaration

The Board of Directors of Novolipetsk Steel, NLMK (LSE: NLMK), the leading Russian steel producer, today recommended for the approval of shareholders an interim dividend in respect of the first six months of 2006 of RUR 1.5 per ordinary share (1 Global Depositary Share = 10 ordinary shares).

Payment of the dividend is subject to shareholder’ approval at the Extraordinary General Meeting of NLMK on 29 September 2006. The payment procedure is exercised in accordance with the following cash dividend process:

- NLMK transfers funds for dividend payments on Global Depositary Shares (GDSs) to the depositary bank on 23 November 2006. Depositary bank sets payment date no later than 5 days after receipt of funds. Dividends on GDSs will be paid, by default, in U.S. dollars (USD) based on USD/RUR spot F/X rate on the day of currency conversion by the depositary bank.

- Dividends on ordinary shares are paid within three months after the approval at the Extraordinary General Meeting of NLMK.

The Board of Directors approved a record date for the half-yearly dividend of 16 August 2006 (00.00).