OREANDA-NEWS. October 8, 2007. In regard to dissemination by the Ekonomicheskiye Izvestiya (No.173 (706), 5 October 2007) of unreliable information in the article "Akhmetov expects guarantees from Timoshenko", SCM Company chooses to state the following:

The article cites so-called SCM's CFO speaking allegedly of the Company’s stance on further investments into OJSC Dniproenergo. This information appears unreliable and incorrect, as the position of SCM's CFO has been held by Mr. Roman Vodolazky since June 2005. This information is accessible to public and posted on the Company's website in the Management Profile section .

SCM's official stance on Dniproenergo is the following:

We do not doubt lawfulness and transparency of Dniproenergo rehabilitation procedure, which included open investment tender, approval of rehabilitation plan by the court and all respective state authorities, including Antimonopoly Committee of Ukraine and National Electricity Regulation Commission of Ukraine. Obligations of investors (mining company Pavlogradugol and Komsomolets Donbassa Mine) are formalized in the Investment Agreement signed on 13 September 2007 to prevent bankruptcy of the largest customer. It was another step towards rehabilitation of the power generating company. The next step includes receipt by Dniproenergo of investments to implement fixed assets modernization program (the investments to come before the end of 2007) and signature of Amicable Agreement with all creditors. All actions contemplated by the rehabilitation plan are taken in accordance with the laws. The investors do not intend to deviate from the court-approved plan realizing that on 1 January 2008 the moratorium on bankruptcy of energy companies will be lifted, thus resulting in liquidation piecemeal sale of assets of Ukraine's largest thermal power producer and a threat to Ukraine's energy security.

The stance referred to in the article is not true and the printed information noticeably damages business reputation of SCM.

We demand the Ekonomichesnkiye Izvestiya publish a rebuttal in the next issue of the edition. SCM believes that publication of materials of such quality in Ukrainian business print media is unacceptable and regards publication of such materials is a provocation. SCM is determined to protect its business reputation applying all legal ways including, if necessary, in courts.