Evraz Completes Acquisition of Oregon Steel

Date of publication: 23.01.2007

LUXEMBOURG, January 23, 2007 - Evraz Group S.A. (LSE:EVR) today announced that it has completed its acquisition of Oregon Steel Mills, Inc. (NYSE:OS) via a “short-form” merger of Oregon Steel with Evraz’s wholly owned subsidiary Oscar Acquisition Merger Sub, Inc.

The merger follows the announcement on January 12, 2007 of the successful closing of the cash tender offer by Oscar Acquisition Merger Sub, Inc. to purchase all outstanding shares of common stock of Oregon Steel for $63.25 per share, in which more than 90% of the shares were tendered. Payment has already been made for all tendered shares.

Pursuant to the merger, each share of Oregon Steel common stock not accepted for payment in the tender offer, other than those as to which holders exercise dissenters’ rights and those held by Evraz or Oregon Steel or their respective subsidiaries, has been converted into the right to receive the $63.25 price per share, without interest and less any required withholding taxes, that was paid during the tender offer.

“We appreciate the fact that Oregon Steel shareholders have accepted our offer and that we have completed the transaction in a timely manner,” said Alexander Frolov, Evraz chairman and chief executive officer. “We welcome Oregon Steel’s employees into the Evraz family, and look forward to jointly building a world-class company with efficient operations, diverse revenue streams and high margins. From day one, the combined company is a global leader in the important rails market, with a strong presence in the two largest railway countries. Together, we can also expect to benefit from vertical integration synergies as well as improved margins from access to lucrative downstream markets and a reliable source of Russian slabs to support an already low US cost base.”

Jim Declusin, Oregon Steel Mills president and chief executive officer, said: “We are pleased to join with Evraz and become part of a leading global steelmaker with complementary strengths and markets. As part of Evraz, we will have the critical elements needed to compete in new and growing markets.”

Forward Looking Statements
This press release contains forward-looking statements. These statements are based on Evraz’s and Oregon Steel’s current expectations and beliefs. Actual results could differ materially from the results implied by these statements. Factors that may cause or contribute to such differences include: timely development of competitive products and pricing, as well as fluctuations in demand; cost and availability of raw materials; potential equipment malfunction; plant construction and repair delays; the ability to retain key management and technical personnel of Oregon Steel; adverse reactions to the proposed transaction by customers, suppliers and strategic partners; and other risks described in Oregon Steel's report on Form 10-K filed with the Securities and Exchange Commission (SEC) for the fiscal year ended December 31, 2005. Oregon Steel and Evraz are under no obligation to (and expressly disclaim any such obligation to) update or alter their forward-looking statements whether as a result of new information, future events or otherwise.

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