EVR Evraz Plc

RNS Number:8618O
Evraz Group S.A.
13 July 2005


         Evraz Group S.A. to acquire Vitkovice Steel in Czech Republic

        * Selected by the Government of Czech Republic in privatisation tender
          auction
        * Acquisition in line with strategy to develop Group's presence in the
          established European markets

Moscow, July 13, 2005 - Evraz Group S.A. (LSE: EVR), one of the leading 
vertically integrated steel production and mining businesses with operations 
mainly in Russia, today announces it has been selected by the Government of 
Czech Republic to acquire Vitkovice Steel, the largest platemaker in the Czech 
Republic, for CZK7.05 billion (approximately Euro233 million).

Evraz Group will acquire 98.96% of the shares in Vitkovice in the privatization 
and take control of the business within the next three months, subject to 
approval from competition authorities. Evraz Group will then begin implementing 
a new business plan for Vitkovice focused on improving its efficiency and 
international competitiveness.

The acquisition will be financed from a combination of debt and existing
facilities, including the capital raised from the Group's initial public
offering on the London Stock Exchange in June 2005.

The acquisition is in line with Evraz Group's stated strategy to develop its
presence in the established European markets.

Commenting, Alexander Abramov, Evraz Group Chairman and Chief Executive Officer,
said:

"We are very pleased with the Czech Republic Government's decision to award the
Vitkovice privatization to Evraz. We believe our bid was the strongest in
meeting all the requirements of the Government. This acquisition will allow the
company access to growing Central and Eastern European (CEE) steel market. The
Czech Republic, in particular, is enjoying strong economic growth following its
recent entrance to the European Union. We look forward to welcoming Vitkovice
into the Evraz Group and to developing it into a world-class business."

                                     # # #



For further information:

Evraz Group
Corporate Affairs and Communications
Irina Kibina
Alexander Karlashov
Tel: +7 095 234 4627
IR@eam.ru

Merlin
Lachlan Johnston
Maria Suleymanova
Tel: +44 207 653 6620

Crest Communications
Sarka Marikova
Tel.: +42 222 927 110
sarka.marikova@crestcom.cz


Notes to Editors

Evraz Group S.A.

Evraz Group is one of the largest vertically-integrated steel and mining
businesses with operations mainly in the Russia. In 2004, Evraz produced 13.7
million tonnes of crude steel.

Evraz's principal assets include three of the leading steel plants in Russia:
Nizhny Tagil (NTMK) in the Urals region, and West Siberian (Zapsib) and
Novokuznetsk (NKMK) in Siberia.

Evraz Group's fast-growing mining businesses comprise the Kachkanarsky (KGOK),
Evrazruda (acquired in March 2005) and Vysokogorsky (VGOK) iron ore mining
complexes and NeryungriUgol Coal Company and an equity interest in the
Raspadskaya coal mine. The mining assets primarily supply Evraz Group's
steelmaking operations, enabling the company to be a vertically-integrated steel
producer, limiting its exposure to fluctuations in the prices of key raw
materials. Evraz obtained over 70% of its iron ore requirements from KGOK, Evraz
Ruda and VGOK in 2004 and also obtains the majority of its coking coal from
Raspadskaya and other affiliated producers.

Evraz also owns and operates the Nakhodka commercial sea port, in the Far East
of Russia, which facilitates access to Asian export markets.

Vitkovice Steel

Vitkovice Steel is the largest platemaker in the Czech Republic located in the
City of Ostrava in the Moravia region of the country. Vitkovice Steel produced
870,000 tonnes of steel products in 2004, mostly high-quality steel plate. It
recorded sales of Euro423 million and earnings before interest, tax, depreciation
and amortisation of approximately Euro 57 million in 2004. Vitkovice Steel employs
more than 1500 people.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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