• Revenue increased to US $1,261 million, compared to US $1,035 million in H1 2011
• Operating profit increased to US $410 million, compared with US $288 million in H1 2011
• Adjusted EBITDA grew to US $462 million, compared to US $337 million in H1 2011
• Net profit amounted to US $444 million, compared with US $266 million in H1 2011

Moscow, Russia – August 03, 2012. URALCHEM HOLDING P.L.C. (hereinafter URALCHEM Holding or the Company), a Cypriot holding company of the URALCHEM Group (hereinafter the Group), one of the largest producers of nitrogen and phosphate fertilisers in Russia, announced its unaudited IFRS financial results for the six months ended 30 June 2012.

Key Financial Figures for H1 2012 and 2011 (US $ million)

Dmitry Konyaev, CEO of URALCHEM, OJSC (part of the Group), commented on the results for the first half of 2012, “We achieved good financial results in the first half of this year compared to the same period in 2011. EBITDA increased by more than one-third, sales grew by 18% and reached 3 million tons. The good performance was driven by situation on the urea and ammonium nitrate markets, which was favourable for us, as well as acquisition of Perm Mineral Fertilizers JSC and our own efforts aimed at improving the efficiency of enterprises, the modernization of production and our responsiveness to changing market needs.”

Financial Results

Revenue for the first half of 2012 grew to US $1,261 million, compared to US $1,035 million in the first half of 2011. Operating profit amounted to US $410 million, or 33% of the revenue, compared with the operating profit of US $288 million, or 28% of the revenue in the first half of 2011.

Net profit for the first half of 2012 amounted to US $444 million, compared to US $266 million in the first half of 2011.

During the first half of 2012, adjusted EBITDA reached US $462 million, compared to US $337 during the same period last year, a rise of 37%. Adjusted EBITDA margin for the first half of 2012 comprised 37% of revenue compared with 33% of revenue for the first half of 2011.

Markets

During the second quarter of 2012 prices of mineral fertilisers and semi-products showed significantly different dynamics. Ammonia prices began to recover due to high demand and limited supply. During the second quarter the price grew by $150/t and by the end of June it reached $600/t FOB at the Yuzhny port.

Prices for urea increased until mid-May and surpassed the peak figures of 2011. Since mid-May there was a significant decline in prices due to low activity of buyers. In late June - early July, the urea market began to show signs of recovery.

Prices for ammonium nitrate repeated the dynamics of the urea market and grew rapidly until mid-May. However, the second half of the quarter was characterized by falling prices for the product, which was also due to low purchasing activity.

The global market of phosphate fertilisers was in the process of recovery during the second quarter of 2012. Due to strong demand in Latin America, spot prices recovered, despite the launch of Chinese products on the market. Market participants are forecasting a stable outlook for the third quarter of the year.

Sales

In the first six months of 2012 the Group’s product sales grew by 18% compared to the same period in 2011 and totalled 3 million tons. Due to the acquisition of JSC Perm Mineral Fertilizers, sales of urea and ammonia increased significantly, by 117% and 61% respectively.

Sales of Commercial Products of URALCHEM Group in H1 2012-2011 (thousands of tons)

Financial Situation

Cash generated from operating activities in the first half of 2012 amounted to US $342 million compared with US $194 million in the first half of 2011.

On 30 June 2012, the Company’s net debt amounted to US $991 million. Interest expenses in the first half of 2012 decreased by US $23 million or 36% compared to the same period last year.

Annex to the press release about the unaudited financial results for the first half of 2012

EBITDA is a profit / loss from financial and economic activities during the reporting period, before deduction of income tax on profits, income and interest costs, depreciation and amortization. "Adjusted EBITDA" is EBITDA for the reporting period before goodwill, profit / loss from associates, profit / loss on foreign exchange differences arising on financial performance and profit / loss on operations with derivative financial instruments. Adjusted EBITDA is operating profit before depreciation and amortization and financial results of operations with derivative financial instruments. In accordance with International Financial Reporting Standards ("IFRS"), depreciation and amortization are included in cost structure, and in the selling, general and administrative expenses. IFRS does not require the disclosure and does not describe the calculation of EBITDA and adjusted EBITDA, among other financial indicators, so they can not substitute for net profit for the period when evaluating the results of operations or the measure of cash provided by operating activities when evaluating liquidity. Approach to the calculation of EBITDA and adjusted EBITDA, as described earlier, may not coincide with the approaches used by other companies, therefore, comparability may be limited. We believe that EBITDA and adjusted EBITDA provide useful information to investors because they are indicators of the stability and efficiency of our business and our ability to fund discretionary spending such as capital expenditures, the acquisition of subsidiaries and other investments, as well as indicators of our ability to incur and service debt. IFRS classifies depreciation and amortization to operating costs, while in fact they are distributed to the current period non-cash expenses for the acquisition or creation of fixed assets, incurred in previous periods, and are not affiliated with the movement of funds.

Calculation of EBITDA for H1 2012 - 2011 (thousands of US$)

*Financial Statements for the first half of the year were restated following the acquisition of Perm Mineral Fertilizers, JSC.