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UC RUSAL ANNOUNCES H1 2010 RESULTS

UC RUSAL Plc (SEHK: 486, EuroNext: RUSAL/RUAL), the world's largest aluminium producer, announces its results for the first six months of 2010 ended 30 June 2010.

Key highlights:

• Net profit of USD1,268 million for the first half of 2010, as compared to net loss of USD868 million for the first half of 2009.
• Revenue increased by 41.6% to USD5,321 million in the first half of 2010, as compared to the first half of 2009, due to higher aluminium prices.
•  Profit from operating activities of USD1,034 million in the first half of 2010 generating an operating margin of 19%, as compared to a loss from operating activities of USD487 million in the first half of 2009.
• Adjusted EBITDA1 increased to USD1,325 million for the first half of 2010, as compared to negative USD144 million for the first half of 2009. Adjusted EBITDA margin has returned to historically comfortable level of 24.9%.
• Total aluminium output grew to 1,996 thousand tonnes in the first half of 2010, an increase of 1%, as compared to the first half of 2009. In the second quarter of 2010, aluminium production increased by 5%, as compared to the first quarter of 2010.
• Alumina output totaled 3,712 thousand tonnes in the first half of 2010, a decrease of 1%, as compared to the first half of 2009. In the second quarter of 2010 alumina production increased by 3.7%, as compared to the first quarter of 2010.
• Aluminium foil and packaging production volumes increased by 32% to 39.7 thousand tonnes in the first half of 2010, as compared to 30.1 thousand tonnes in the first half of 2009.
• Aluminium Cash Operating Costs decreased by 2.3% from an average of USD1,706 per tonne of aluminium for the first quarter of 2010 to an average of USD1,666 per tonne for the second quarter of 2010.
• Completed commissioning of potline 5 at Irkutsk aluminium smelter (Russia), restarted production at the Novokuznetsk aluminium smelter (Russia), Ewarton plant (Jamaica) and restored operations at Aughinish alumina refinery (Ireland).
• Investments2 in development of existing facilities and construction of new assets amounted to USD457 million, including refinancing of the BEMO Loan in the amount of USD208 million and repayment of the BEMO Loan in the amount of USD52 million out of IPO proceeds in accordance with the terms of the International Override
• The market value of UC RUSAL's stake in Norilsk Nickel was USD7,168 million at 30 June 2010, compared to USD6,707 million as at 31 December 2009 due to a positive share price performance in the first half of 2010.
• VEB USD4.5 billion loan refinancing approved by Sberbank, maturing in December 2013.
• Long-term project finance in the amount of RUR50 billion (approximately USD1.7 billion3) for BEMO HPP and the first phase of the Boguchansky aluminium smelter approved by VEB.
• The Board of Directors of the company approved that the board lot size of the shares for trading on the Stock Exchange of Hong Kong Limited will be changed from 24,000 shares to 6,000 shares with effect from 9:30 a.m. (Hong Kong time) on 4 October 2010.

Commenting on the first half of 2010 results, Oleg Deripaska, CEO of UC RUSAL said: "UC RUSAL significantly improved its strong financial performance in the first half of 2010. We have increased revenue by 41.6%, returned to a historically comfortable adjusted EBITDA margin of 24.9% and consolidated the positive rate of return. These results reflect the significant improvements in our operational efficiency including the impact of various cost-saving initiatives and productivity enhancement programs. As the industry outlook began to improve, we started to restore production at our facilities, and also increased our capacity through the launch of a technologically and environmentally advanced fifth potline at the Irkutsk aluminium smelter. This will strengthen our position as the world's largest aluminium producer.

"Recessions are followed by active growth and dynamic development, which we need to be prepared for. Continued recovery in global markets should generate good opportunities for growth in demand for aluminium, as it is a base metal required to support key industries and growing economies. As financing has been finalised for the completion of the BEMO Project and further negotiated for the Taishet Aluminium Smelter, more than 1 million tonnes per annum of new, more efficient aluminium and electricity production capacity will be ensured.

Asia is a key region for the aluminium industry and consumption, driven by China, is forecast to continue to grow. UC RUSAL's developing presence in the region will allow the Company to capitalise on its competitive advantages, thereby achieving even stronger financial performance and value growth."

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