PRESS RELEASE

SEVERSTAL NORTH AMERICA, INC. ANNOUNCES THOMAS CERA AS NEW CHIEF OPERATING OFFICER

DEARBORN, Mich., January 9, 2008 – Severstal North America, Inc, a division of Severstal OAO, one of the world’s leading metals and mining companies, today announced that its Board of Directors has named Mr. Thomas J. Cera to the position of Chief Operating Officer on January 2, effective immediately. Mr. Cera will be responsible for quality, operational effectiveness and safety, and will report to Ronald Nock, President and Chief Executive Officer.

He replaces Jim Hrusovsky, who was recently appointed CEO of SeverCorr, a next generation steel mill based in Columbus, Mississippi that serves the fast-growing Southern region of the U.S. SeverCorr financials will be fully consolidated into Severstal OAO in 1Q 2008.

Mr. Cera has a significant amount of relevant strategic and operational experience, having worked in the steel industry for 27 years. He served as Director, Operations Management at OAO Severstal from 2007 to 2008. Prior, Mr. Cera was Plant Manager, Finishing Operations for Mittal’s Indiana Harbor Plant from 2005 through 2006, and was Vice President, Plate and Rail Products for ISG from 2004 through Mittal’s acquisition of ISG in 2005. Mr. Cera began his career at U.S. Steel in 1981 as a management associate at the Gary Works and held positions of increased responsibility in coke production, hot rolling, cold rolling, sheet products, tin products, plate products and coating.

“We are pleased to add Tom to the Company’s management team. His extensive industry experience and leadership skills will be a great asset to Severstal North America, as we continue with our modernization program to become the best-in-class steel producer,” Mr. Nock stated.

“Severstal North America is one of the most storied mills in America. There is a great team here and I am excited about the opportunity to help them strengthen the business at this pivotal time of growth and development,” Mr. Cera remarked.

Mr. Cera holds a Bachelor of Science degree in Management from Calumet College and a MBA from Indiana University.

About Severstal North America

Severstal North America, Inc. (“SNA”) ranks as the fourth largest integrated steel company in the United States with its manufacturing facilities and corporate headquarters located in Dearborn, Michigan. SNA produces high quality flat-rolled carbon steel products – hot rolled, cold rolled, electrogalvanized and hot-dip galvanized – for customers in the automotive industry as well as for customers in the converter, service center and other related markets. To increase its line of value-added products, SNA has formed a number of joint ventures with other steel companies. Pursuing its commitment to an exceptional quality product and to the protection of human and environmental health, SNA has earned TS 16949, OHSAS 18001 and ISO 14001 certifications, the international standards for quality, health and safety and environmental management systems, respectively. SNA is a wholly-owned subsidiary of OAO Severstal, one of Russia's largest steelmakers and one of the top fifteen integrated steel manufacturers in the world.