Based on materials from the official web-site of MMC Norilsk Nickel.

MMC Norilsk Nickel and its subsidiaries present the consolidated annual financial statements for the year ended 31 December 2005, prepared in accordance with International Financial Reporting Standards (“IFRS”). The consolidated annual financial statements have been audited by Deloitte & Touche in accordance with the International Standards on Auditing, and they have issued an unqualified audit opinion.

The measurement currency of the consolidated annual financial statements is the Russian Ruble (“RUR”), which reflects the economic substance of the Group’s operation, which has most of its assets in the Russian Federation.

The Group presentation currency is the United States of America Dollar (“USD”). Using $as a presentation currency is common practice for global mining companies.

At EGM on 30 September 2005 the qualified majority of the total voting shareholders of MMC Norilsk Nickel voted in favor of the spin-off of CJSC Gold Mining Company Polus and its subsidiaries (the “Polus Group”). As a result of the spin-off, Polyus Gold, a new Russian open joint stock company, was formed on 17 March 2006. It received from MMC Norilsk Nickel 100% of the shares in CJSC Polus and a cash contribution of $360 million (RUR 10 billion).

Due to the spin-off of the gold mining assets the financial results for the year ended and the assets and liabilities of the Polus Group intended for spin-off are presented separately in the respective sections of the financial statements.

In 2005, revenues from metal sales increased by 9% from 2004 to a total of $7 169 million. The main reason for the growth in revenue in 2005 was the increase of the average annual sales prices for all metals sold by the Group, except for palladium.

Favorable situation in the metal markets, extension of the sales geography and focusing on final customers enabled the Group to have a revenue increase for all metals of $578 million, of which $489 million (85%) was for base metals, and $89 million (15%) for Platinum Group Metals (“PGM”) and gold.

Palladium sales decreased by 9% from $1 005 million in 2004 to $914 million in 2005. The main contributing factor for the palladium sales decrease is the decline in the average annual palladium export price from 2004. Palladium sales without Stillwater decreased by 9% from $725 million to $661 million in 2005. In physical terms, sales of palladium produced by the Norilsk Nickel Group in Russia amounted to 3 231 000 ounces in 2005.

In 2005 Stillwater sold 933 000 ounces of palladium, including 439 000 ounces of palladium received from the Group in 2003.

Platinum sales increased by 22% from $706 million in 2004 to $864 million in 2005. Sales of platinum produced by the Norilsk Nickel Group in Russia increased by 27% from $539 million in 2004 to $683 million in 2005. The increase is explained mainly by the increase in the average annual platinum export price. In physical terms, platinum sales amounted to 758 000 ounces in 2005. During 2005 platinum sales by Stillwater amounted to 216 000 ounces.

Gold sales increased by 43% from $51 million in 2004 to $73 million in 2005. The increase is due both to the growth of the average annual gold realised price and the growth of the physical sales. In physical terms, gold sales amounted to 162 000 ounces in 2005.

Profit for the year increased from $1 857 in 2004 to $2 352 million in 2005 due to higher selling prices of metals and control over expenditures.

Based on the financial results for the 9 months ended 30 September 2005, an Extraordinary General Meeting of Shareholders held on 30 December 2005, where the shareholders approved the distribution of dividends in the amount of RUR 8.7 billion or RUR 43 ($1.49) per ordinary share. The interim dividends were paid in February 2006.

Based on the Group’s 2005 financial results, the Board of Directors proposed to the General Meeting of Shareholders, scheduled for 29 June 2006, to approve the final dividends for 2005 in the amount of RUR 18.9 billion or RUR 96.49 ($3.47) per ordinary share.

Thus, taking into account the dividends previously paid for the 9 months of 2005, the additional dividends for 2005 will amount of RUR 10.2 billion or RUR 53.49 ($1.98) per ordinary share. The Board of Directors confirms that the dividend policy of the Company approved by the Board of Directors in 2002 remains unchanged. It provides for 20%-25% of the IFRS net profit for the year, to be paid as dividends.

Full version of the consolidated annual financial statements of MMC Norilsk Nickel for the year ended 31 December 2005 prepared in accordance with IFRS is available on the Company’s web-site (www.nornik.ru/en) in section Shareholders/Financial Documents.

In case of any questions, please contact: Dmitry Usanov, Head of Investor Relations, Telephone: +7 495 755 6733, E-mail: usanovda@nornik.ru, www.nornik.ru/en.