OREANDA-NEWS. OAO TMK (“TMK” or “the Company”), one of the world’s largest oil and gas pipe producers, and the market leader of the Russian pipe industry, today provides the following trading update in advance of the publication of its preliminary results for the year ended 31st December 2006, which will be announced in May 2007.

Overall trading for 2006 has been in line with expectations and revenues are expected to be approximately 3.3 billion USD. During 2006 the Company has experienced a material improvement in margins. In accordance with management expectations, the EBITDA margin for the full year, whilst not quite reflecting the same as for the first half of 2006, will represent a substantial increase in margin over the full year 2005.

As previously stated, in 2006 TMK’s plants shipped more than 3 million tonnes of tubular goods, representing around a 3% increase over 2005. Within that figure, OCTG shipment volumes (products with higher added value) increased by over 16%. This growth was achieved at existing production facilities while the strategic investment program, which will add more than 1.1 million tonnes of seamless capacity by 2010, was being implemented.