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23 November 2007

OJSC Novolipetsk Steel (NLMK) Statement Re Maxi Group

Novolipetsk Steel (LSE: NLMK) notes recent media reports concerning the Yekaterinburg-based Maxi Group. NLMK confirms that it is in discussions with Maxi Group and that the parties have reached an agreement in principle on the sale of a controlling interest in Maxi Group to NLMK.

The transaction, which is subject to execution of a definitive shareholders agreement and approval by NLMK’s Board of Directors, is expected to be completed by the end of the year.

Further announcements will be made, as appropriate.

Maxi-group is a vertically integrated group comprised by two major divisions – a production division, OJSC Metallurgical holding, and a raw materials division, CJSC Uralvtorchermet, that form the production chain from scrap collection and processing to production of high value added steel products. The Company owns CJSC Nizhneserginskiy metizno-metallurgicheskiy zavod, a hardware producer, and CJSC Revdinskiy trubnyi zavod, a tube producer.