Moscow, Russia – 12 December, 2008 – URALCHEM, OJSC, (“URALCHEM” or “the Company”), one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS, today announced that Closed Joint Stock Company Mineral Fertilizer Plant of Kirovo-Chepetsk Chemical Works (MFP KCCW, CJSC) (Kirovo-Chepetsk, Kirov Region) has won a prize for the Best Environmental Project of 2008 in the category for Ecological Efficiency of the Economy awarded by the Ministry of Natural Resources and Ecology of the Russian Federation. The Company’s project is called “A System of Ecologically Effective Investment Solutions, Based on the Application of Membrane Methods for Water Treatment System Reconstruction”.

Yuri P. Trutnev, Russian Minister of Natural Resources and Ecology presented the certificate to Dmitry Osipov, Chief Executive Officer of URALCHEM, OJSC on 11 December, 2008.

The Company’s project is designed to decrease the volume of water waste from the plant and bring its quality into accordance with the standards set for utility and drinking water reservoirs.

The project is of great importance for environmental protection on local, regional and federal levels. Waste disposal from the MFP KCCW, CJSC production site into the Yelkhovka River has decreased by 56% since the project was launched. Additionally, the reconstruction of the water treatment system will make it possible to cease the recycling of highly mineralized drainage at the subsurface refuse disposal by 2012. Expenses associated with the operation of the underground disposal tank will also be reduced once the system is retired.

The project is intended to be completed in June 2009. The economic benefit from the project will amount to approximately 60 million roubles per year.

Dmitry Osipov, Chief Executive Officer of URALCHEM, OJSC commented: “The Prize of the Ministry of Natural Resources and Ecology of the Russian Federation comes as a result of our great attention and serious attitude towards the environment and ecological projects at all enterprises of the Company”.