Moscow, Russia � January 13, 2009 � Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces a dividend payment (including taxes) of RUR10,974,744,749.12 (approximately US$378.4 million as of December 31, 2008), based on the Company�s results for the 2007 fiscal year.

Mechel OAO has allocated for its annual dividend payment to shareholders for the 2007 fiscal year the total of RUR10,981,222,253.10 (approximately US$378.6 million as of December 31, 2008) (including taxes), or RUR26.38 (approximately US$0.9 as of December 31, 2008) per one ordinary registered book-entry share. The amount of funds allocated to pay the annual dividend is over 50% of the company�s net profit for 2007 according to US GAAP.

As of December 31, 2008, all funds to pay the dividend to the holders of Mechel�s ADRs were transferred to the account of the Company�s depositary bank (Deutsche Bank), which will distribute them before January 15, 2009.

Total dividends of RUR6,477,503.98 (approximately US$223 thousand as of December 31, 2008), or 0.06% of the allocated amount, were not distributed to certain shareholders due to their failure to fulfill their obligations to provide information on their bank details required to transfer the dividends.