OREANDA-NEWS. March 3, 2008. Severstal today announces that it holds an analysts’ seminar in Moscow on March 3, 2008, to brief analysts on changing its accounting policy for fixed assets from the Revaluation model to the Cost model.

This change will be first time reflected in Severstal’s IFRS financial statements for the year ended December 31, 2007, due to be published on March 17, 2008.

Mikhail Noskov, CFO of Severstal group, commented: “This change brings us in line with all our peers, thus making it easier to compare steel companies like for like. We believe investors will appreciate the ability to see our financials on the same cost basis as those of our competitors.”

As a result of this change the group’s net assets will be decreased by the accumulated amount of fixed assets revaluations net of tax effect and net profit will be increased by the respective decrease of depreciation, earnings per share will be increased accordingly. This will also decrease minority shares in net assets of certain subsidiaries and foreign exchange differences on translation of financials into the reporting currency. There will be no effect on revenue or EBITDA of the Group.