OREANDA-NEWS. Notice is hereby given that VSMPO-AVISMA Corporation Profit and Loss Account for the first quarter of 2007 included into the Issuer Quarterly Report contains the results of the first six months of 2006 which is attributed to a fault of technical nature, reported the press-centre of VSMPO-AVISMA. VSMPO-AVISMA Corporation presents apologies for the given inaccuracy. The Profit and Loss Account for the first quarter of 2007 to be included into the Issuer Quarterly Report is set forth in the Appendix here to (http://www.vsmpo.ru/doc/Appendix.pdf).


The following should be clarified with regard to the indices of the Profit and Loss Account for the first quarter of 2007. The sales of goods in the first quarter of 2006 equaled 8’391’081’000 rubles. This fact is caused by entering into force on 01.01.2006 of Federal Law No. 58-FZ on Amendment to Part Two of the Russian Federation Tax Code dated 06.06.2005 and some other tax and due laws of the Russian Federation which resulted in change of VSMPO-AVISMA Corporation accounting policy and influenced the procedure for recognition of sales proceeds under export contracts. Hence, the proceeds indicated as a result of changing the procedure for recognition of sales proceeds under export contracts amount 2’605’781’000 rubles out of the proceeds of 8’391’081’000 rubles for the first quarter of 2006.