MOSCOW, February 28 /PRNewswire/ --

Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that it has started a project to develop and implement an electronic trading system.

Mechel OAO and eTradeCommunity (ETC, a member of the ARMADA group of companies) are jointly realizing a project to develop and implement the Mechel-Procurement electronic trading system to automate the process of competitive purchases by Mechel's subsidiaries. Trading operations at Mechel-Procurement's electronic trading site, which will be opened on Mechel OAO's corporate web site, will be carried out by 14 of Mechel's subsidiaries.

The Mechel-Procurement electronic trade system is designed to automate managing the processes of placing purchase orders and controlling goods, works, and services for Mechel's subsidiaries. Procurement will be carried out strictly in the form of an auction with the primary selection criteria being price. The use of a tender system or sole provider will be possible in exceptional cases.

The system will use electronic digital signature technology as the instrument for confirming legal force of electronic documents, which will significantly optimize the contracting process and subsequent interactive work with partners.

Mechel OAO Senior Vice President on Economics and Management Mukhamed Tsikanov, the project supervisor, noted, "The objective that will be achieved as the result of this system implementation is neutralization or lowering of human factor in trading and purchasing operations. This product is another effective tool for controlling expenditures and developing constructive relations both with providers of material resources and users of our products. Using such an electronic trade site will enable Mechel to significantly reduce Mechel's subsidiaries' costs of trading and purchasing operations, thus increasing the efficiency of the group's business."

Mechel is one of the leading Russian companies. Its business includes three segments: mining, steel, and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.

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.

Ilya Zhitomirsky of Mechel OAO, +7-495-221-88-88, ilya.zhitomirsky@mechel.com