Millhouse Capital Asset Management Group To Manage Key Assets

Moscow, 24 October 2001; A group of core shareholders in Sibneft will entrust management of an extensive portfolio of assets spanning key sectors of the Russian economy to a newly created asset management group, Millhouse Capital. The assets will include an 88% stake in Sibneft, the country's fastest growing oil company, and a 50% stake in Russian Aluminium, the world's second largest aluminium producer.

The company will also manage a series of other investments held by Sibneft's core shareholders, including investments in the airline, electricity, automobile, pulp and paper processing, insurance and banking industries. Millhouse Capital will manage assets, but will not own significant assets itself.

Millhouse aims to achieve major enhancements to shareholder value at each of the companies it manages, and will also seek to expand its existing portfolio of assets. Each of the group's assets will be managed as a separate profit centre, without any cross-subsidization.

Millhouse will apply global best practice in the field of management. "Millhouse aims to be a major engine of growth in the Russian economy, bringing world-class management and access to capital to companies with high growth potential," said Sibneft president Eugene Shvidler, who will serve as chairman of the board of directors of Millhouse.

"The company aims to be a progressive force for change on the Russian corporate landscape. Millhouse will target undervalued assets where growth in shareholder value has been hindered by ineffective management, lack of investment or bad corporate governance."