Severstal North America, a subsidiary of OAO Severstal, today announced that The Renco Group, Inc. has signed a definitive agreement to purchase Severstal’s operations at Warren, OH, Wheeling, WV, and Sparrows Point, MD. The transaction is expected to close in March 2011, and is subject to customary closing conditions, including expiration or early termination of the Hart-Scott-Rodino waiting period.

As transaction consideration, Severstal will receive $125 million in cash, a $100 million secured note, and the repayment of $317 million of third-party debt at closing. Renco will also assume various Severstal financial liabilities including employee-related and environmental liabilities totaling $650 million.

The Renco Group, Inc. is a family owned, private holding company that makes long term investments in companies across a range of industries including mining, mineral recovery, metals production / fabrication, defense, and automotive supply industries.

“The sale of Warren, Wheeling, and Sparrows Point marks a strategic refocusing of our North American operations,” said Sergei Kuznetsov, CEO of Severstal International. “The sale of these assets will enable Severstal North America to evolve into a stronger and more focused organization that is better able to serve our North American customers,” Mr. Kuznetsov concluded.

Evercore Partners is acting as Severstal’s financial adviser, and Skadden, Arps, Slate, Meagher & Flom LLP are acting as Severstal’s legal advisers.

Contact

Katya Pruett
Severstal North America
+1 (313) 317−9760

Vladimir Zaluzhsky
Investor Relations, OAO Severstal
+7 (495) 926 7766

Elena Kovaleva
Public Relations, OAO Severstal
+7 (495) 926 7766/67 ext.6447

About Severstal North America

Severstal North America is a major steelmaker in the United States and specializes in the full range of the high quality light flat rolled products. Fully integrated operations and corporate headquarters are located in Dearborn, Michigan. A new state-of-the-art electric arc furnace operation in Columbus, Mississippi serves the growing demand for steel in the southeastern United States. Severstal North America also has several joint ventures for the high quality, value-added coated products, as well as a jointly owned coke-making facility Mountain State Carbon. Severstal North America is a wholly-owned subsidiary of OAO Severstal, one of the world’s largest vertically integrated steel and mining companies.

About Severstal International

Severstal International is an operating division of OAO Severstal comprising the North American and European segments.

About OAO Severstal

OAO Severstal is an international steel and mining company with a listing on the Russian Trading System, Moscow Interbank Currency Exchange and the London Stock Exchange. The company focuses on high value added and unique niche products and operates high quality assets in Russia, North America and Europe.

About the Renco Group

The Renco Group is a family owned private investment holding company founded in 1975. Its portfolio includes a wide range of industries including mining and mineral recovery, defense equipment, metal fabrication and automotive supply. The group makes long-term investments in companies across a range of industries where it sees value and growth.