TMK 2010 Production Results (UPDATE)

TMK 2010 Production Results (UPDATE)

14 January 2011

Following the production results, TMK reports the change in its debt position as of 2010 year-end. The figures presented below are non-IFRS measures and represent management estimates.

As at 31 December 2010, the nominal principal value of TMK's total interest-bearing loans and borrowings amounted to U.S.$3,863.5 million, as compared to the nominal principal value of total interest-bearing loans and borrowings of U.S.$3,665.1 million as at 30 June 2010. The nominal principal value of TMK's short-term interest-bearing borrowings was U.S.$675.3 million as at 31 December 2010, or 17.5% of the nominal principal value of TMK's total interest-bearing loans and borrowings, as compared to the nominal principal value of short-term interest-bearing borrowings of U.S.$806.3 million, or 22.0% of the nominal principal value of the total interest-bearing loans and borrowings, as at 30 June 2010. Additionally, as at 31 December 2010, 35.9% (U.S.$1,387.1 million) of TMK's total nominal principal amount of interest-bearing loans and borrowings were secured by pledges over assets of the TMK Group, of which 21.6% (U.S.$300.0 million) was secured by pledges of shares in subsidiaries of OAO TMK and 78.4% (U.S.$1,087.1 million) was secured by pledges over property, plant and equipment, inventories, deposits, cash and accounts receivable of subsidiaries of OAO TMK.

TMK continued to optimize the structure of its borrowings in the second half of 2010 and seeks to further improve the debt maturity profile and liquidity position in 2011.

TMK IR Department

Alexei Ratnikov

Tel: +7 495 775 7600

Email: [email protected]