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ChelyabinskZincPlant (CHZN)


Friday 08 June, 2007



JSC Chelyabinsk Zinc Plant
08 June 2007

        Chelyabinsk Zinc Plant Reaches Agreement With Alumasc Group plc

                             To Acquire Brock Metal

Chelyabinsk, Russia - June 08, 2007 - Chelyabinsk Zinc Plant (LSE: CHZN, RTS:
CHZN), the leading Russian producer of SHG zinc and zinc alloys, and the Alumasc
Group plc (LSE: ALU) reached agreement for CZP to acquire the Brock Metal
business (Norton Canes, Cannock, Staffordshire), the leading UK supplier of zinc
and aluminum die-casting alloys.

The transaction is worth £0.35 million plus an amount of £7.8 million which
equals to the estimated working capital at the closing date. All of Brock's
existing management team and employees will transfer with the business. The
acquisition is expected to be completed by the end of June.

Brock Metal is part of the Alumasc Group plc - the premium building and
engineering products group. In the year to 30 June 2006, Brock's operating
profit was £0.7m on revenue of almost £40m.

Commenting on the transaction, Sergei Moiseyev, Chairman of the Board of
Directors of CZP said: We consider the acquisition of Brock Metal, a supplier of
premium zinc alloys with strong UK and European presence, as an opportunity for
further downstream integration - towards a more finished product and sales of
more value-added zinc alloys in Europe, which will have positive impact on our
profitability ratios. We are excited to welcome Brock's highly experienced team
into the Chelyabinsk Zinc Plant family, and I would like to assure all employees
of the commitment of CZP to socially responsible policies and confirm that all
jobs remain secure'.

About Chelyabinsk Zinc Plant

The Chelyabinsk Zinc Plant is a leading Russian zinc producer, accounting for
approximately 60% of Russian zinc production volume. In 2006 the plant produced
148,384 tons of SHG zinc. According to consolidated IAS accounts, revenues in
2005 were RUB 4.791 billion, and net profit was RUB 147.2 million.

52.34% of the shares of CZP are owned by NF Holdings B.V. (Netherlands). 50% of
the shares of NF Holdings B.V. are owned by Arkley Capital S.a r.l., Luxemburg.

The ordinary shares of CZP are traded on the RTS exchanges, under ticker CHZN,
and the Global Depository Receipts (GDRs) are traded on the London Stock
Exchange under ticker CHZN.

                                                    Investor and Media Contacts:

                       Anna Levitanskaya, PR Director, [email protected]
                            Tatyana Krasnousova, IR, [email protected]
                                                           Tel: +7 495 933 27 80

This announcement may include forward-looking statements. CZP's actual results
may differ materially from those made in or suggested by the forward-looking
statements contained in this announcement. By their nature, forwarding-looking
statements involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future. Forward-looking
statements are not guarantees of future performance. Even if the actual results
are consistent with the forward-looking statements contained in this
announcement, those results may not be indicative of results or developments in
future periods. CZP does not undertake any obligation to update any
forward-looking statements to reflect events that occur or circumstances that
arise after the date of this announcement.

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

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