SeverStal : A Company Statement

Luxembourg (ots/PRNewswire) - Since we signed our merger agreement
with Arcelor on May 26th, we have proceeded in good faith with our
partners to provide a compelling value proposition to shareholders.
In response to feedback from investors, we have also substantially
improved the merger terms.

We have a legal, binding merger agreement that the board of
Arcelor entered into. It has unanimously supported it to date,
consistently affirming the industrial logic, the better business
sense and the higher value creation behind our agreement on several
occasions. In light of this we are very surprised that the board did
not invite us to discuss our revised proposal nor offer us an
opportunity to respond as we had requested.

We are now reviewing all of our options.

About SeverStal

SeverStal is the largest Russian steel producer, with 2005 steel
production of 17.1 million tonnes. It is the second largest flat
steel producer in Russia with annual steel production of 10.9 million
tonnes. In addition, SeverStal owns Severstal North America, the
fourth largest integrated steelmaker in the U.S. with 2005 production
of 2.7 million tonnes, and Lucchini, Italy's second largest steel
group with 2005 production of 3.5 million tonnes. The SeverStal Group
is one of the world's lowest cost and most profitable steel
producers, with 2005 EBITDA per tonne of approximately EUR150 per
tonne. SeverStal-Resource owns 70 years of iron ore reserves and 84
years of coal reserves. SeverStal-Resource produces coking coal,
thermal coal, iron ore pellets and iron ore concentrate.

More information

For the latest on the deal - news, views and information, please
visit Severstal Speaks, our in-time updated communication website, at
www.severstal-speaks.com.

Contact for Europe
Marie Rouet +33-6-03-81-51-37
Alpana Kar +33-6-98-18-31-47
Edelman +33-1-56-69-75-74
Severstal@edelman.com
Contact for London
Jonathan Smith +44-7801-144052
Jonathan.smith@edelman.com
Contact for Russia & CIS
Olga Antonova +7-(495)-540-7765 ext. 6447
antonova@Severstalgroup.com

ots Originaltext: Severstal
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Contact for Europe: Marie Rouet +33-6-03-81-51-37, Alpana Kar
+33-6-98-18-31-47, Edelman +33-1-56-69-75-74, Severstal@edelman.com.
Contact for London, Jonathan Smith +44-7801-144052,
Jonathan.smith@edelman.com. Contact for Russia & CIS: Olga Antonova
+7-(495)-540-7765 ext. 6447, antonova@Severstalgroup.com