EVR Evraz Plc

RNS Number:7156C
Evraz Group S.A.
10 May 2006



10.05.2006

               Evraz Group's major operating subsidiaries report
                         Q1 2006 RAS Financial Results

May 10, 2006 - Evraz Group S.A. (LSE: EVR), one of the leading vertically
integrated steel production and mining businesses with operations mainly in
Russia, announces that its major Russian operating subsidiaries(1) have filed
financial results with the Federal Financial Markets Service of the Russian
Federation (FFMS) for the three months ended March 31, 2006. The results are
prepared in accordance with Russian accounting standards (RAS).

The filing of RAS accounting results for Evraz's major Russian operating
subsidiaries is a Russian regulatory requirement. RAS accounting results differ
materially from IFRS and are not comparable to financial statements prepared in
accordance with IFRS. The RAS accounting results of Evraz's major Russian
subsidiaries are not indicative of the financial condition or results of
operations of these entities or of Evraz Group S.A. under IFRS. Reference should
be made only to Evraz Group S.A.'s consolidated financial statements prepared in
accordance with IFRS for information with respect to Evraz's financial condition
and results of operations.

Evraz Group S.A. publishes consolidated financial statements prepared in
accordance with IFRS for the six months ended June 30 and for the year ended
December 31, in each year.

--------------------------
(1) The major subsidiary companies include: OAO Nizhny Tagil Iron and Steel
Plant (NTMK); OAO West Siberian Iron and Steel Plant (Zapsib); OAO Kachkanarsky
Mining and Processing Integrated Works (KGOK)


Highlights

   * NTMK profit lower due to significant drop in export prices vs Q1 2005;
    Zapsib performance improved due to better cost management and increased
    volumes

Prices for exported semis in Q1 2006 were lower in comparison with peaking
prices of Q1 2005; however recovering prices are the main factor for a better
performance in Q1 2006 vs Q4 2005.

Higher net profit at NTMK and Zapsib in Q4 2005 as compared to Q1 2006 is 
partially attributable to dividend payments made by KGOK to these two mills at 
the end of 2005. Excluding the amounts paid as dividends by KGOK to NTMK 
(RUR2,364 million)and Zapsib (RUR1,797 million), the net profit in Q1 2006 at 
these two steel mills would have been -26% and +8% against Q4 2005.

   * KGOK decreased profit year-on-year due to lower domestic prices and
    destocking

The profit year-on-year was impacted by lower domestic iron ore prices starting
from mid-2005. Iron ore volumes decreased in Q1 2006 vs Q4 2005 due to
optimisation of inventory levels and bad weather conditions.

   * Improved profitability at KGOK due to restructuring and effective cost
    management

The restructuring programme at KGOK is yielding results: strict cost management
and efficiency gains in Q1 2006 contributed to better performance vs Q4 2005. 
Revenue grew by 5% and net profit was up 53% as compared to Q4 2005.


                 Q1 2006 RAS Financial Results for Subsidiaries
      (All amounts are in millions of roubles, unless specified otherwise)

OAO Nizhny Tagil Iron and Steel Plant (NTMK)
----------------- -------     -------    ---------     --------     --------- 
                  Q1 2006     Q1 2005    Q1 2006/       Q4 2005     Q1 2006/
                                         Q1 2005                    Q4 2005
                                         change, %                  change, %
----------------- -------     -------    ---------     --------     --------- 
Revenue            14,821      19,452        (24%)      15,811           (6%)
Gross profit        4,636       6,263        (26%)       4,962           (7%)
Operating profit    3,920       5,527        (29%)       4,231           (7%)
Net profit          2,733       4,212        (35%)       6,071          (55%)
-------------     ---------  --------   ---------    ---------      ---------


OAO West Siberian Iron and Steel Plant (Zapsib)
----------------- -------     -------    ---------    ---------     --------- 
                  Q1 2006     Q1 2005    Q1 2006/       Q4 2005     Q1 2006/
                                         Q1 2005                    Q4 2005
                                         change, %                  change, %
----------------- -------     -------    ---------    ---------     --------- 
Revenue            14,085      15,207         (7%)       13,811            2%
Gross profit        2,703       2,970         (9%)        2,976          (9%)
Operating profit    1,941       2,176        (11%)        2,185         (11%)
Net profit          1,371       1,525        (10%)        3,067         (55%)
----------------  -------     -------    --------     ---------     ---------


OAO Kachkanarsky Mining and Processing Integrated Works (KGOK)
----------------- -------     -------    ---------    ---------      --------- 
                  Q1 2006     Q1 2005    Q1 2006/       Q4 2005      Q1 2006/
                                         Q1 2005                     Q4 2005
                                         change, %                   change, %
----------------- -------     -------    ---------    ---------      --------- 
Revenue             2,908       4,264        (32%)         2,75            5%
Gross profit        1,409       2,784        (49%)        1,154           22%
Operating profit    1,257       2,661        (53%)          967           30%
Net profit          1,051       2,118        (50%)          689           53%
----------------- -------     -------   ----------    ---------     ----------


For further information:

Evraz Group
Corporate Affairs and Investor Relations
Irina Kibina
Tel: +7 495 232 1370
IR@evraz.com
www.evraz.com





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