MECHEL REPORTS LONG-TERM PARTNERSHIP WITH SAP AG

Moscow, Russia — September 20, 2011 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces the signing of a strategic
partnership memorandum with SAP AG, the world’s leading supplier of business
management software solutions.
As a result of the September 20 meeting between Mechel OAO’s Chief Executive
Officer Yevgeny Mikhel and SAP AG’s President for EMEA Franck Cohen, the two
sides signed a memorandum for strategic partnership to increase the efficiency
of the company’s key processes. The document provides for the gradual
implementation of SAP software solutions, based on specialized industry packages
in Mechel’s mining, steel and sales divisions.
The two sides also decided to jointly implement the Enterprise Resource Planning
(ERP) project in all of Mechel’s sales network business units. ERP will be
deployed and fully functional in the sales units within 18 months.
“Implementing ERP in our sales division will enable Mechel Group to increase the
efficiency of our key processes. With its help, we will bring together all the
main processes in Mechel’s service and trading businesses, speed up closure of
our financial accounting, cut expenses due to making many of our processes
centralized and automated, and dramatically increase our company’s operational
efficiency. We consider this as an investment project and have taken into
consideration what positive quality and quantity effects it is expected to have.
This initiative is due to provide support to Mechel sales network’s annual
growth and consolidate our company’s position on the international markets,”
Mechel OAO’s Chief Executive Officer Yevgeny Mikhel noted.
The project of a consolidation system for Mechel OAO based on SAP software was
launched in 2007 and included all of Mechel’s divisions. It enabled the group to
optimize a number of important financial processes and standardize collection
and processing of the holding’s consolidated financial accounting.
About SAP
SAP is the world’s market leader in business management software*, offering
solutions and services that allow companies of all sizes, working in over 25
industries, to increase the efficiency of their business. The company has over
92,000 clients (including clients who acquired Business Objects) in over 120
countries.
*SAP defines business management software as solutions for enterprise resource
administration and certain applications.
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Mechel OAO
Ekaterina Videman
Phone: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products,
hardware, heat and electric power. Mechel products are marketed domestically and
internationally.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.