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20 December 2006

Novolipetsk Steel (NLMK) completes transaction creating joint venture with Duferco Group.

Further to the announcement on November 27th, 2006, Novolipetsk Steel (LSE: NLMK), a leading Russian steel producer, has completed the acquisition of a 50% interest in a joint venture with Duferco Group that owns and operates a number of steel production and distribution facilities in Europe and the USA. The purchase price of USD805.5 million was financed in full from NLMK’s existing cash funds.

The purchase price is subject to a post-closing adjustment based on the results of the audited financial statements of the joint venture companies for the fiscal year ended 30 September, 2006. The purchase price adjustment is expected to be completed in the second quarter of 2007.