OMZ published today its 2004 interim consolidated unaudited IFRS financial results. The results are presented in a format that allows investors to compare the performance of OMZ�s continuing operations for the six months of 2004 with the same period in 2003 (excluding the effect of the disposal of OMZ Onshore&Offshore, OMZ�s shipbuilding and oil drilling equipment division). The Company�s management notes that the interim financial results are in line with earlier Company forecasts.

Consolidated sales for the first six months of 2004 totaled US$176,2 million, a 32% increase over the same period of 2003. Gross profit increased by 38% and reached US$53 million. EBITDA reached US$18,5 million and operating profit increased by 46% to reach US$13,5 million. Net income for the six months of 2004, before the loss from discontinued operations, amounted to US$5,4 million. International sales, including sales to CIS countries, reached US$103 million or 41,5% of total sales.

During the second half of 2004 OMZ acquired two Czech companies � Skoda JS (manufacturer of nuclear power plant equipment) and Skoda Steel (manufacturer of specialty steel), whose net assets totaled US$93 million, for US$42 million. If the acquisition of the Skoda companies and the disposal of OMZ Onshore&Offshore were executed on 1 January 2004 OMZ would have posted sales of US$277,1 million, EBITDA of US$24 million and operating profit of US$14,1 million.
The financial results can be viewed on the Company�s website www.omz.ru ( https://www.omz.ru/rus/financial/corporate/)

For further information please contact Marina Nacheva, Head of Investor Relations, on (++7095) 974 6021 or by e-mail at mnacheva@omz.ru.