Governor Granholm is Honored for Leadership in Preserving Michigan's Manufacturing Jobs

DEARBORN, Mich., May 19, 2004 -- Severstal North America, Inc., the nation's fifth largest integrated steel company, today hosted a dinner reception of 350 industry, business, labor and political leaders in Michigan, to honor Michigan Governor Jennifer M. Granholm for her tireless efforts in preserving and creating manufacturing jobs in Michigan.

"I would like to thank Governor Granholm for her leadership and commitment to maintaining a strong and vibrant steel, mining, and automobile industry here in Michigan," said Alexey Mordashov, Chairman and CEO of the Severstal Group. "We look forward to being an integral part of Michigan's 'manufacturing team' for many years to come," Mr. Mordashov said.

Governor Granholm has taken a leading role among the nation's governors in emphasizing basic industry manufacturing jobs. Carl Valdiserri, retired Chairman and Chief Executive Officer of Rouge Industries, Inc. said, "The alacrity with which Governor Granholm has worked to preserve manufacturing jobs in our great state is well documented, well known, and indisputable. She has 'walked her talk' to 'outwork anybody and everybody' when it comes to creating and saving manufacturing jobs in Michigan," concluded Mr. Valdiserri.

The dinner reception also celebrated OAO Severstal's acquisition of substantially all the assets of Rouge Industries, Inc., including its primary operating subsidiary Rouge Steel Company, which was completed earlier in 2004. Severstal North America, Inc. employs over 2,300 people at its Dearborn steel making facilities and headquarters.