OREANDA-NEWS. On August 22, 2008 the Board of Directors of OJSC MMC Norilsk Nickel (hereinafter – Norilsk Nickel or the Company), acting under the Federal Law of Russian Federation On Joint Stock Companies (Art. 72 p. 2) and the Company’s Charter (p. 9.3.8.), has taken the decision by a majority vote to buy-back up to 7,947,000 of the Company’s own shares (about 4% of the authorized capital of Norilsk Nickel), reported the press-centre of Norilsk Nickel.

“Norilsk Nickel intends to buy-back its own shares in order to support the Company’s securities, which went down in price significantly in the last several months. This price drop was impacted mostly by factors that are irrelevant to the Company’s fundamentals,” - said General Director Vladimir Strzhalkovsky.

Vladimir Strzhalkovsky also emphasized Norilsk Nickel’s strong growth potential, which the new management team intends to fulfill to the maximum extent.

Shares will be bought-back from shareholders of Norilsk Nickel on a pro rata basis at RUB 6,167 (around USD 254) per share, which is a volume weighted average share price for the period from February 15, 2008 to August 15, 2008 according to MICEX data. The period was selected to reflect the medium-term movement of the Company’s share prices and minimize the effect of short-term developments.

The number of shares to be bought-back from the shareholders was established, inter alia, on the basis of conservative approach to Norilsk Nickel’s liquidity management and taking into consideration the program of capital investments for 2008-2009.

“In the last three years the shareholders of Norilsk Nickel received more than USD 8 billion as a result of stock buy-backs or buy-outs, and in the form of dividends. The share buy-back will be conducted in accordance with best corporate governance practices, in absolutely transparent manner ensuring equal access for all shareholders of the Company and permitting the holders of American depositary receipts (ADRs) to participate in the share buy-back process. Bought-back shares will be held as treasury shares on the balance sheet of Norilsk Nickel,” - said Alexander Popov, First Deputy General Director of the Company.

Applications for Norilsk Nickel’s share buy-back will be accepted from shareholders willing to sell their shares in the period from September 29, 2008 to October 28, 2008.

Shares will be purchased in the period from October 29, 2008 to November 27, 2008.

Cash payments for bought-back shares shall be made in accordance with the terms of stock purchase agreements but not later than in 15 days after the shares are recorded on the account of Norilsk Nickel in the Company’s Register.