OREANDA-NEWS. July 16, 2008. OAO Severstal (LSE: SVST; RTS: CHMF; “the Company”), one of the world’s leading metals and mining companies, today completed its previously announced acquisition of WCI Steel, a market leader in the production of value-added steel products based in Warren, Ohio. WCI Steel will be known as Severstal Warren, Inc.

Severstal acquired all of the outstanding equity of WCI for a total cash consideration of US\\$140 million.

WCI’s total annual steel-making capacity of 1.22 million metric tons is focused on high-quality, custom flat-rolled steel for use in demanding applications. Together with Severstal’s current US operations, WCI will solidify the Company’s position as one of North America’s leading producers of high-quality flat-rolled steel for the automotive, appliance, furniture, construction and energy markets.

Citi and Raymond James acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to Severstal.

Gregory Mason, CEO of Severstal International and COO of OAO Severstal, commented, “Steel production in Warren has long contributed high-quality products to a region that is at the historical center of steelmaking in the US. Severstal is ready to carry that tradition forward in a way that is consistent with our strategy for growth and investment in North America; a strategy that views the experience and talent of the people at WCI Steel as a key part of Severstal’s continued success.”

In connection with the acquisition, WCI announced that it has called for redemption all of the US\\$100 million aggregate principal amount outstanding of its 8% Senior Secured Notes due 2016 (CUSIP No. 92927H AA 7) (the "Notes"). On July 7, 2008, a copy of the irrevocable notice of redemption was mailed to record holders of the Notes by Wilmington Trust Company, Rodney Square North, 1100 Market Street, Wilmington, DE 19890, the trustee under the indenture governing the Notes. The Notes will be redeemed on August 6, 2008.