OREANDA-NEWS. December 20, 2010. Joint Stock Company Chelyabinsk Tube-Rolling Plant (“ChelPipe”), a leading Russian producer of welded and seamless steel pipes and tubes, and supplier of integrated solutions for the Russian oil & gas industry and a variety of other industries in Russia, is pleased to announce its reviewed IFRS financial results for the six months ended June 30, 2010.

1H 2010 HIGHLIGHTS

·  Revenue for the fist six months of 2010 totaled RUB 37,646 million compared to RUB 27,494 million for the same period last year.

·   1H 2010 EBITDA amounted to RUB 9,163 million and was equivalent to 24% of revenue, compared to EBITDA of RUB 1,695 million for 1H 2009, equivalent to 6% of revenue.

·   Net profit for the first six months of 2010 was RUB 3,011 million compared to a RUB 2,840 million net loss for the first six months of 2009.

·   The increases in revenue, EBITDA and net profit in 1H 2010 are primarily a result of the recovery in demand for pipe products from oil and gas companies, construction and power generation sectors and improvement of average steel pipe prices.

Commenting on the Company’s 1H 2010 results, Mr. Sergei Moiseyev, Chairman and CFO of ChelPipe stated: “We are pleased with our 1H 2010 performance. There have been positive developments in both volume and pricing and we hope to benefit from a strong market outlook across our product portfolio. Our investment and M&A program, aimed at becoming a leading supplier of integrated solutions for oil and gas production and distribution in Russia is largely completed. We modernized our existing shops and commissioned the most modern and technologically advanced production facilities: LDP shop, Finishing Center and EAF with continuous caster. Concurrently, ChelPipe increased its borrowings to fund its modernisation program. In today's environment our focus remains on profit and cash flow maximization to further strengthen our balance sheet.”