OREANDA-NEWS. May 8, 2008. OAO Severstal (LSE: SVST; RTS: CHMF), one of the world’s leading metals and mining companies, today completed its previously announced acquisition of Sparrows Point, a fully-integrated steel mill based in Baltimore, Maryland, United States, from ArcelorMittal. Severstal has received regulatory approval from the United States Department of Justice and the Committee on Foreign Investment in the United States.

Sparrows Point has a capacity of 3.6 million metric tons of crude steel and shipped 2.3 million metric tons of finished steel products in 2007; it is the only integrated producer of flat rolled steel on the U.S. East Coast and is a major North American supplier of tin mill products.

The acquisition is expected to be accretive in year-one based on current projections of costs and prices and offers significant value creation potential. Additionally, Severstal expects substantial synergies with its current U.S. operations in Dearborn, Michigan and Columbus, Mississippi.

Merrill Lynch & Co. acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to Severstal.

About Severstal:

OAO SeverStal is an international metals and mining company with a listing on the Russian Trading System and the London Stock Exchange. Incorporated in 1993, the company focuses on high value added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. SeverStal owns mining assets in Russia, thus securing its supplies of raw materials. In 2007, Severstal produced 17.5 million tons of steel. Revenues were \\$15.2 billion and EBITDA was \\$3.7 billion. EPS was \\$1.92.

Forward Looking Statements:

This press release may contain projections and other forward-looking statements regarding future events or the future financial performance of OAO Severstal (Severstal). Forward looking statements are identified by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might”, the negative of such terms, or other similar expressions. Severstal wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Severstal does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Factors that could cause the actual results to differ materially from those contained in projections or forward-looking statements of Severstal may include, among others, general economic conditions in the markets in which Severstal operates, the competitive environment in, and risks associated with operating in, such markets, market change in the steel and mining industries, as well as many other risks affecting Severstal and its operations.