Q1 2008 Results under Russian Accounting Standards

Key Financial Highlights

— Revenue increased by 21% to RUR 52,3 bln (RUR 43,1 bln in 1Q2007)

— Operating income on the level of RUR 11,6 bln (RUR 11,7 bln in 1Q2007)

— Net income (net of the effect of financial investments revaluation) grew by 2% to RUR 8,5 bln (RUR 8,4 bln in 1Q2007)

Key Operational Highlights

— Crude steel production up 14% to 3.6m tons compared to 1Q07

— Commercial steel products output increased 12% to 3.3 m tons (1Q2008 to 1Q2007)

— A rise in product prices across the board compared to the end of 2007, including 22% for flat rolled products and 23% for long products

— Domestic demand and global industry dynamics to drive further price increases in Q2

Commenting on the first quarter results, Victor Rashnikov, Chairman of MMK’s Board of Directors said:

“In the first quarter of 2008 we have shown strong positive financial and operational results. These achievements were a result of the company’s focus on high value added products, our strong position in the growing domestic market and continuing significant investments in advanced technology and equipment.

Already this year we have made further significant steps toward resource self-sufficiency through our strategic partnership with coal producer Belon and the development of Prioskolsky iron ore deposit. Against a background of record steel prices and with a strong outlook for the demand for our products in domestic and export markets, we look forward with confidence to the year ahead."

The 1 quarter 2008 results under Russian Accounting Standards (in Russian) are available at: http://www.mmk.ru/rus/shareholders/b_reports/r_reports/index.wbp. Presentation of the results (in Russian) is available here: http://www.mmk.ru/rus/shareholders/presentations/index.wbp

APPENDIX

Production

Major products output

	1Q2008	4Q2007	change	1Q2008	1Q2007	change
	'000 tons	'000 tons	%	'000 tons	'000 tons	%
Cast iron	2 613	2 285	14,4%	2 613	2 298	13,7%
Crude steel	3 598	3 327	8,1%	3 598	3 145	14,4%
Commercial products output	3 287	3 106	5,8%	3 287	2 930	12,2%

	1Q2008	4Q2007	change	1Q2008	4Q2007	change
	'000 tons	'000 tons	'000 tons	'000 tons	'000 tons	'000 tons
Finished products output, including:	3287	3106	180	3287	2930	357
Slabs and billets	431	388	42	431	135	296
Long products	485	404	81	485	456	29
Flat hot-rolled products	1612	1548	65	1612	1649	-37
Flat cold-rolled products	411	409	2	411	330	80
Downstream products
Tin plate	62	52	9	62	55	6
Galvanized steel	106	109	-3	106	106	0
Galvanized colour-coated steel	42	42	0	42	45	-3
Band	82	83	-1	82	82	0
Formed section	39	54	-15	39	52	-13
Pipes	18	18	1	18	19	-1

In 1Q2008 MMK produced 3,598 thousand tons of steel and 3,287 thousand tons of commercial steel products. Company continued increasing production volumes, having grown 8,1% in steel and 5,8% in commercial products compared to 4Q2007.

Enhanced output of billets by 42 thousand tons is due to increases steel making capacities. Long products output also grew by 81 thousand tons on the background of increased demand in 1Q2008 compared to the end of the previous year. Scheduled revamping of production facilities in the end of 2007 boosted hot-rolling and cold-rolling capacities. Production of tin plate and galvanized steel followed the demand curve for these product types.

Average prices (FCA)

The prices are indicative and do not consider either steel grade and quality characteristics or sales markets. Average prices calculation is based on division of revenue by volume.

	1Q2008	4Q2007	change	1Q2008	4Q2007	change
	'000 tons	'000 tons	%	'000 tons	'000 tons	%
Slabs and billets	529	441	20,1%	529	349	51,6%
Long products	627	603	3,9%	627	511	22,7%
Flat hot-rolled products	603	570	5,8%	603	494	22,1%
Flat cold-rolled products	626	612	2,3%	626	560	11,6%
Downstream products
Tin plate	906	857	5,6%	906	812	11,5%
Galvanized steel	894	896	-0,3%	894	909	-1,7%
Galvanized colour-coated steel	1218	1194	2,0%	1218	1167	4,3%
Band	715	683	4,8%	715	614	16,5%
Formed section	823	813	1,2%	823	706	16,6%
Pipes	735	695	5,7%	735	687	7,0%

Steel markets entered new growth phase in 2008. Increase of average prices in the beginning of 2008 is conditioned mostly be strengthening selling prices in all the markets of MMK. It is also because of geographical sales shift with bias towards domestic market which historically enjoys higher prices.

Slight decrease of galvanized steel average price in 1Q2008 compared to 4Q2007 is due to seasonal slow down in construction during this period.

The unconsolidated financial statements for 1Q2008 according to RAS can be found on the following site: http://www.mmk.ru/rus/shareholders/b_reports/r_reports/index.wbp

The presentation of the financial results can be found here: http://www.mmk.ru/rus/shareholders/presentations/index.wbp

About MMK

The Magnitogorsk Iron and Steel Works OJSC (MMK) ranks 20th among the world's largest steel producers (according to IISI) and is one of the leaders of Russia's steel industry (according to Chermet data). The Company is a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of value added goods. In 2007 the Company produced 13.3 m tonnes of crude steel, and 12.2 m tonnes of commercial products. US GAAP sales stood at USD 8.2 bn, with net income at USD 1.8 bn.

Contacts MMK:

Elena Azovsteva

+7 3519 24 90 82 e-mail: azovtseva@mmk.ru

Evgeny Kovtunov

+7 3519 25 46 31 e-mail: kovtunov@mmk.ru

Finsbury:

Brian Cattell

Peter Russell

Sophia Matveeva

+44 207 251 3801