Norilsk Nickel want to buy its shares at Rusal

The analysis of institutional investors’ and shareholders’ opinions made by the Company demonstrated that they consider this course of events to be the most efficient at the moment.

The offer was elaborated in consideration of the consultations conducted with JP Morgan, Morgan Stanley, Goldman Sachs, Societe Generale, UBS, Deutsche Bank, HSBC, and other banks. These banks have expressed their interest and readiness to co-finance the acquisition, understanding its expediency for all parties and utility from the point of view of increasing the investment attractiveness of the Russian companies’ shares on stock markets.

The offered price is set with the premium to the market and, according to the Company’s information, considerably exceeds the acquisition price UC Rusal paid for the stake in the Company in 2008.

If the offered acquisition takes place the Company plans within 2-3 years, depending on market situation, to cancel the shares amounting up to 20% of the Company’s capital stock, using the mechanisms provided by the applicable legislation of the Russian Federation. Part of the acquired shares may be used to issue financial instruments in order to reduce the debt load of the Company.

According to experts and analysts, the acquisition of UC Rusal stake and the subsequent cancellation of the Company’s shares will allow to retain the approved dividend policy of the Company at the former level (20-25 % of net profit), to focus on strategic planning of the Company’s development, to fulfill the investment and production programs of the Company, to comply with social obligations to workers and regions of presence. It will also allow to considerably increase the number of independent directors on the Company’s Board so that they constitute the majority, which corresponds with the best international practices.

The Company’s offer to acquire the shares with premium to the market testifies the credibility of its intentions and the desire to resolve the current situation in the interests of all shareholders.

The company awaits the answer from UC Rusal until 3 p.m., December 28, 2010.