OAO TMK - TMK Implements SAP ERP

RNS Number:5336S
OAO TMK
17 April 2008

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April 17, 2008 PRESS RELEASE

TMK Successfully Implements SAP ERP

OAO TMK (TMK) announces today that it successfully completed the implementation
of an SAP ERP based corporate information system at its Russian mills and
proceeded to its industrial use.

The implementation of the SAP ERP based corporate information system will allow
TMK to control and manage, in real-time, its sales, production, supplies,
finances, accounting, and human resources. TMK customers will benefit from
increased production quality, a unified billing platform, and real-time order
and shipment tracking.

TMK information technology specialists worked together with management and
identified the need for a corporate information system that would integrate a
majority of the company's activities. Manufacturing, supply chain management,
tax compliance and accounting to IFRS best practice, human resources, and
customer relationship management are some issues and activities that needed to
be streamlined in one system. TMK awarded the SAP ERP implementation project to
SAP CIS.

The system was implemented at Volzhsky, Seversky, Sinarsky and TAGMET mills.

The implementation of the SAP ERP based corporate information system, given its
scope and complexity, was undertaken in different stages. On January 1, 2006,
the SAP ERP system was launched at Volzhsky Pipe Plant and integrated the
operations and production areas. Seven integrated modules - sales, production,
supplies, accounting, finance, automation, and human resources were consolidated
in one system. For the first time in the Russian metallurgical sector, a
just-in-time production environment was established.

Earlier this year, "Maintenance and Equipment Repair" and "Project Management"
functionalities were added to Volzhsky's corporate information system. The
second stage consisted of implementing the system at the group's other
facilities. From January 1, 2008, all of TMK's Russian mills have been
integrated in the ERP system industrial use.

"The implementation of our corporate information system was designed to
consolidate and streamline the company's strategies and operations, putting the
company one step ahead of its peers. Moreover, we believe that facilitating
cooperation and communication within the group will greatly benefit our
customers and suppliers", noted TMK's CEO, Konstantin Semerikov.

"We hope that this SAP implementation, which is based on global corporate
experience and production efficiency standards, will further enhance TMK's
competitiveness by giving it unique production advantages.", said Mr. Iovan
Maryanovich, CEO of SAP CIS. He also commented on the execution of the project,
paying special attention to the implementation schedule and quality.

OAO "TMK" (www.tmk-group.com)

Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and one
of the three global market leaders.

In 2007, TMK shipped over 3 million tonnes of pipes. TMK supplies to companies
in more than 60 countries.

TMK production facilities are located in Russia and Romania:

• Volzhsky Pipe Plant;
• Seversky Tube Works;
• Taganrog Metallurgical Works;
• Sinarsky Pipe Plant;
• SC TMK-Resita SA;
• SC TMK-ARTROM SA;
• TMK Oilfield Services:
• Orsky Machine Building Plant;
• Truboplast pipe coating company;
• TMK Central Pipe Yard;
• TMK Pipe Maintenance Department.

For further information please contact:

TMK PR Department: TMK IR Department
Alexey Sotskov Alexei Ratnikov
Tel: +7 495 775 7600 ext. 2125 Tel: +7 495 775 7600 ext. 2078
Email: PR@tmk-group.com Email: IR@tmk-group.com

www.tmk-group.com

This information is provided by RNS
The company news service from the London Stock Exchange

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