URALCHEM continues mineral fertilizer asset consolidation

Moscow, Russia – July 25, 2008 – URALCHEM, OJSC (“URALCHEM” or the “Company”), one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS, today announced the continued consolidation of its mineral fertilizer assets.

In accordance with chapter XI.1 of the Federal Law “On Joint Stock Companies” that provides for the possibility to request purchase of securities by an individual or a legal entity, who has acquired more then 95% of the voting shares in an open joint stock company, including the shares owned by this individual and its affiliated individuals or legal entities, URALCHEM has sent a request to KCCW, OJSC (Kirovo-Chepetsk) and Azot, OJSC (Berezniki) to acquire the remaining securities in the companies.

In May-June 2008, pursuant to article 84.2 of the Federal Law “On Joint Stock Companies” and under the mandatory offer, URALCHEM purchased 15.26% of ordinary shares in KCCW, OJSC from the minority shareholders thus forming an interest of 95.43% voting shares in KCCW, OJSC. Additionally, pursuant to article 84.1 of the Federal Law “On Joint Stock Companies” and under the voluntary offer, URALCHEM purchased 13.79% of ordinary shares in Azot, OJSC from the minority shareholders thus forming an interest – together with the affiliated legal entity, URALCHEM MC, LLC, – of 95.54% in Azot, OJSC. 

In accordance with paragraph 4 of article 84.8 of the Federal Law “On Joint Stock Companies”, the securities will be bought at a price of RUB 10,108.04 per ordinary registered share of KCCW, OJSC, and a price of RUB 22,700.00 per ordinary registered share of Azot, OJSC.

The lists of the owners of the purchased shares are to be compiled on September 8, 2008 (KCCW, OJSC) and on September 10, 2008 (Azot, OJSC).