APRIL 2011
                                        

Severstal sells several facilities

Severstal North America, a subsidiary of OAO Severstal, announced that The Renco Group, Inc. has signed a definitive agreement to purchase Severstal’s operations at Warren, Ohio, Wheeling, West Virginia, and Sparrows Point, Maryland. The transaction was expected to close in March 2011, and was 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.

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