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Proposed change in dividend payment terms

Date of publication: 17.12.2008

December 17, 2008 – Evraz Group (LSE: EVR) ("Evraz" or the "Company") announces that at its meeting held yesterday, the Board of Directors proposed to allow shareholders to elect to receive up to US$2.25 per share or US$0.75 per GDR of the interim dividend of US$8.25 per share / US$2.75 per GDR announced on August 29, 2008 in new shares. New shares will be issued at US$22.50 per share or US$7.50 per GDR, a discount of approximately 31.2 percent to the last close of US$32.70 per share or US$10.90 per GDR as at December 16, 2008.

If approved, the revised payment terms of the interim dividend for shareholders of record as of September 18, 2008 are:

• US$6.00 per share or US$2.00 per GDR paid in cash to all shareholders/GDR holders (the ‘Cash Component’). The Cash Component will be paid by December 18, 2008, as previously announced; and

• An option for all shareholders/GDR holders to elect to receive the remaining portion of interim dividend of US$2.25 per share or US$0.75 per GDR (the ‘Equity Component’) in either new shares to be issued by the Company or in cash.

The Board of Directors has set the price of new shares to be issued at US$22.50 per share or US$7.50 per GDR. The new issue price represents a discount of approximately 31.2 percent to the last close of US$32.70 per share or US$10.90 per GDR as at December 16, 2008 as quoted on the London Stock Exchange.

The introduction of the voluntary scrip dividend requires the approval of shareholders. Accordingly, the Board has decided to call an extraordinary shareholders’ meeting on January 30, 2009, to approve the proposal and other related issues.

The Board believes that the proposal offers shareholders an attractive partial scrip dividend alternative. Any resultant cash saving will further strengthen the Company’s financial position in the current challenging economic and market environment.


For further information:

Evraz Group
Corporate Affairs and Investor Relations
Alexey Ivanov
Tel: +7 495 232 1370
IR@evraz.com


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