MECHEL WARNS ABOUT MECHEL SERVICE NAME FRAUDULENTLY USED
Moscow, Russia – March 25, 2010 – Mechel OAO (NYSE: MTL), a leading Russian
mining and steel company, warns about fraud operations possible through third
parties’ illegally acting on behalf of its Mechel Service OOO sales subsidiary
with no authorization for that.
Third party’s sale of steel products based on fake documents using Mechel
Service’ name was prevented on March 22, 2010. Fraudsters who presented
themselves as official representatives of the company attempted to make a fake
contract to deliver rolled products. The contract’s total value was over than 13
million rubles (approximately US$440,000*). They offered steel products at lower
prices and on the terms of 100% prepayment. The fraudsters used fake letters of
attorney and agency agreement to make the fake delivery contract where they
specified their bank details in ProBank Moscow branch and effective post address
of Mechel Service’ headquarters. Mechel’s corporate security service together
with law-enforcement authorities are currently taking measures to bring the
fraudsters to justice.
The events of fraud have not been unusual in the recent past. Mechel Service is
one of the largest sales and service companies in the Russian steel market with
a wide regional sales network. Mechel Service is well-known as a reliable
partner and supplier and this fact attracts fraudsters attempting to deceive
customers and enjoy the illegal benefit through application of the name and
unique logos of the company as well as Mechel registered trademark to fake
specifications and contracts.
Mechel Service asks its customers to be careful when making contracts for rolled
products supplies and pays much attention to all events of fraud. We recommend
performing a thorough examination of key details, such as a taxpayer’s
identification number, principal state registration number and registered
address, and validity of representatives’ authorities to prevent fraud
operations. Mechel Service’ contact details are available on the Sales page of
Mechel’s website. The details may also be received by phone at Mechel’s
headquarters and from sales managers of Mechel Service’ corporate branches.
* According to the Russian Central Bank exchange rate of 29,57 RUR/$ as of March
25, 2010.

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Mechel OAO
Ekaterina Videman
Phone: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is one of the leading Russian companies.  Its business includes four
segments: mining, steel, ferroalloy, and power. Mechel unites producers of coal,
iron ore concentrate, nickel, steel, rolled products, ferroalloys, hardware,
heat and electric power. Mechel products are marketed domestically and
internationally.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.