On August 21, 2006, Zinc Plant of Chelyabinsk JSC held extraordinary general meeting. The stockholders defined the limit of the company’s nominal book-entry shares of common stock offered at 50m shares with face value 1 RUR each, so that the total value comes to 50m RUR. This decision is reported in the company’s release. The stockholders also approved of the new version of the company’s Charter, of the corporate code of behavior, and of some other documents.

On August 18, 2006, Federal Financial Markets Service of Russia released the notification of closing down Energy Fund closed unit investment trust managed by Eurogreen Management Company (part of Eurogreen Investments and Financial Company). The PR-department of Federal Financial Markets Service reported that this was effected by the fact that before the end of the trust formation, the value of its property fell short of the minimum value defined by the state rules for unit investments trusts formation. Due to the resources (property) inadequacy, the trust had to be reformed. This was

Board of Directors of Yuzhuralconditer JSC made a decision to hold extraordinary general meeting. The stockholders will address the question of approval of an important transaction, namely the contract of Merendinqi automated sponge cake production line supply negotiated between the Association and CB CB S.r. l. of Italy. In addition, the stockholders are to decide on the contract with Alpha-Bank JSC. The contract concerns giving the company a credit line in foreign currency.

Metallurgical Industrial Complex of Nizhniy Tagil JSC (part of Evraz Group) spent approximately two million RUR on supporting the local educational establishments they patronize. Thanks to the Complex, sixteen schools have been able to have some repairs done; they also bought new equipment, furniture, sporting goods and office supplies. Some of them had kitchen and medical facilities replaced and new electric wiring introduced as well. The Complex has been cooperating with the schools of Tagilstroyevskiy district of Nizhniy Tagil for a few scores of years. The company executives traditionally

Karpinsk Electric Machine Industry Works of Karpinsk, Sverdlovsk Region, left FinPromCo United Works on August 10, 2006, when the corresponding share-selling agreement was signed with the investor. ‘The plant now belongs to the investor interested in high-voltage produce that we have always specialized in. We sold the shares of Uralburmash JSC at the end of 2005, and in July, the new proprietors of the company presented Governor Eduard Rossel with the technical upgrading plan with over 1 billion RUR worth of investments. We agreed to sell the shares of the plant when we realized that these

Yekaterinburg Electrical Network Company JSChas been preparing all the equipment for the maximum workload in the upcoming heating season, reports the company’s spokesperson. According to the data concerning Yekaterinburg Electrical Network Company JSC presented by UralEnergosetProject Institute, the maximum figure for the winter of 20052006 came to 916 megawatt (809 megawatt in December 2005). The approximate heating load is estimated at 100 megawatt, with the load increase coming to 10.5% in 2005/2006.

Standard & Poor’s, an international rating agency, has recently annulled the corporate management rating of UralSvyazInform, the regional mobile operator, reports the agency’s spokesperson. ‘We saw some corporate management mechanism improvements last year, for example, the company’s publishing its report on IAS prior to the annual general meeting and doing a tender on auditing services. Besides, the company managed to deal with the controversial influence of SvyazInvest, the state-controlled majority shareholder. Yet all of these improvements are outweighed by the decrease in the number

Former Director of Municipal Environmental Center Viktor Kulakov was appointed Director of Chelyabinsk Region Lead after this nominee was approved by Chelyabinsk Region Government today. The Government also agreed on the voluntary resignation of former Director of Chelyabinsk Region Lead Alexander Semerkin.

Metallurgical Works of Zlatoust assessed the results of its industrial activity in July 2006. Within the last month, the enterprise produced 54,212 tons of steel and 34,854 tons of rolled metal. 34,305 tons of the company’s production output were shipped to consumers.

Uglemetbank JSC has recorded a change in the authorized capital share (in the common stock of the association) of one of the bank shareholders. The change was effected by BASK Insurance Company JSC that has recently made two bargains changing its shareholding in equity stock of Uglemetbank JSC. Thus, on August 8, 2006, the company’s share in the authorized capital of Uglemetbank went down from 19.99% to 16.24%, and a week later, on August 15, 2006, the share went up to 17.56%. These changes are recorded in the releases of the bank. This has been the third change in the allocation of

Zinc Plant of Chelyabinsk JSC, member of Chelyabinsk Tube Rolling Group, was granted quality management certificate of adequacy to ISO 9001-2000 requirements and environmental management certificate of adequacy to ISO 14001-2004 requirements. The certificates are issued by the competent international BVQI certification body on the basis of auditing of the company’s integrated management system. The certification was preceded by a number of time- and labor-consuming efforts by the company specialists introducing the integrated management system complying with the international standards. BVQI

Abakansky subsidiary of Evrazruda JSC (part of Evraz Group) has completed advancing of Kletyevoy groove air channel. The channel is designed for air delivery from the venting and air heating unit that is under construction on the surface to the floors below +65 meters and to the underground crushing complex at the floor of -95 meters. Throughout November 2005 to August 2006, specialists of the stone drivages sector No. 21worked through about 40 meters of excavations from the surface to the Kletyevoy groove breakoff. The air channel was being advanced under difficult mining and geological

On August 17, 2006, the annular heating furnace No. 2 was decommissioned at the wheel tread shop of Integrated Metallurgical Complex of Nizhny Tagil JSC (NTMK JSC, part of Evraz Group). The furnace was heating the billets up before employing them in the wheel manufacturing. The unit had been functioning at the shop over 50 years and was outdated. Within August 17, 2006 the gas supply was cut off, all the service lines were disconnected from the furnace and the sliding shutters were closed. The furnace decommissioning was a scheduled step of the corporate reconstruction program. The

Ural Turbine Works CJSC is going to tender for the contract of 14 300-megawatt steam turbines delivery to People’s Republic China. The company intends to tender in cooperation with a similar Chinese enterprise, namely, Harbin Turbine Works. On August 14, 2006, the cooperation was negotiated during the visit of PRC deputation headed by the vice-governor of Helongjiang province. By now, China uses 62 turbines produced in the Ural region. Tests of Ural Turbine Works specialists show that T-255/305-240 steam cogeneration turbine has a less fuel consumption than the Chinese turbines of the same

Within the first half of 2006, the tax payuments of Chelyabenergo JSC to all kinds of state and municipal budgets exceeded 200m RUR. This was reported to UrBC representative by the spokesperson for the company. The mentioned sum of taxes is made up of 128m RUR of tax payments to the federal budget, 9m RUR of tax payments to the budget Chelyabinsk Region and 0.8m RUR of tax payments to municipal budgets. Thew company’s payment to State Pension Fund of Russia exceed 62m RUR.

‘We are not going to put up Tarutinsky copper and porphyry deposit for an auction within the nearest future,’ said the spokesperson for licensing department of Chelyabinsk Region Territorial Agency of Subsoil Resources. According to the spokesperson, the deposit is likely to be auctioneered no sooner than in one or two years. Earlier, the license for the Tarutinsky deposit development was possessed by Tarutinsky Ore Mining and Processing Enterprise CJSC controlled by Eureka Mining of UK. In 2005 the license was withdrawn and the right of subsoil user was forfeited before the appointed time

Within the seven months of the current year, Tube Rolling Plant of Chelyabinsk JSC sold 505,500 tons of tubes, including the large-diameter pipe shipments of 263,700 tons. During July 2006, the company shipped 91,100 tons of tubular goods to consumers, including 46,500 tons of large-diameter pipe shipments. Throughout January to July 2006, Tube Works of Pervouralsk shipped 420,100 tons of tubular goods to consumers, including 73,100 tons of shipments in July. This was reported by PR-department of Tube Rolling Plant of Chelyabinsk JSC.

Lukoil-Nefteproduct Ltd. advertised for sale of some petroleum storage depots in Chelyabinsk Region, namely of those located in Kropachevsk, Miass, Yemanzhelinsk and of the filling station No. 19 located in the town of Kartaly. ‘The sale is a part of our business activityoptimization. We sell not-paying storage depots whose daily sales are less than 1 ton of oil products,’ said Vyacheslav Bolotnikov, the spokesperson for Chelyabinsk branch of Lukoil-Nefteproduct Ltd. to UrBC representative. Vice-president of Vitatron-Medtronic visits Sverdlovsk Region Jo W. Merkun, Vice-president of Dutch

38 senior staff members of SevUralBauxitRuda (SUBR) JSC, including representatives of the accounting staff, of the works and building department, of the plant engineering, of finance, planning and industrial safety departments, have successfully learned to use SAP R/3 integrated ERP-platform-based accounting system. SAP R/3 ERP-platform-based computer-aided management system is an automated enterprise management system composed of numerous modules supporting different business processes. ‘Introduction of the system is to allow the staff on-the-fly access to the whole complex of the relevant

38 senior staff members of SevUralBauxitRuda (SUBR) JSC, including representatives of the accounting staff, of the works and building department, of the plant engineering, of finance, planning and industrial safety departments, have successfully learned to use SAP R/3 integrated ERP-platform-based accounting system. SAP R/3 ERP-platform-based computer-aided management system is an automated enterprise management system composed of numerous modules supporting different business processes. ‘Introduction of the system is to allow the staff on-the-fly access to the whole complex of the relevant