- Revenue increased to US $ 1389.1 million, compared to US $ 949.1 million in 2009

- Operating profit increased to US $ 205.2 million compared with the loss of US $ 5.6 million in 2009

-  Adjusted EBITDA grew to US $ 309.2 million, compared to US $ 110.5 million in 2009

-  Net profit amounted to US $ 29.6 million compared to the net loss of US $ 97 million in 2009

Moscow, Russia - April 21, 2011. URALCHEM Holding P.L.C. (hereinafter URALCHEM Holding or the Company), a Cypriot holding company of the URALCHEM Group (hereinafter  the Group), one of the largest producers of nitrogen and phosphate fertilizers in Russia, today announced its IFRS consolidated financial results under for the 12 months of 2010.

Key financial figures for 2009-2010 ($ million)

Dmitry Konyaev, CEO of  URALCHEM, OJSC (part of URALCHEM Group), commented on the results of operations in 2010: “Strong results have been achieved through access to a unique resource base and a strong industrial and logistics infrastructure, a balanced lineup of basic and premium products, a significant share of the Russian domestic market and international distribution to over 50 countries worldwide. Due to the increased activity in the phosphorus market, optimum resource use, improved structure and schemes of sales, we were able to significantly improve EBITDA which is the key indicator in evaluating the effectiveness of the company”.

Maxim Bakov, Chief Financial Officer of URALCHEM, OJSC said: “The financial performance of URALCHEM in the reporting period was massively influenced by market conditions. Excellent results were achieved due to the restoration of the phosphate fertilizer market, growing demand from Russian and Western consumers, as well as flexibility of production at the Company’s enterprises. The market began its steady growth towards pre-crisis figures in the last 9 months of 2010, together with an increase in average world prices for ammonia by 47.3%, ammonium nitrate by 31.5%, DAP by 40.1% and urea - by 3.9% compared with the same period of 2009.”

Financial results

Revenue for the 12 months of 2010 grew to US $ 1389.1 million, compared to US $ 949.1 million for the 12 months of 2009. Operating profit amounted to US $ 205.2 million, or 14.7% of the revenue, compared with the loss of US $ 5.6 million for the 12 months of 2009.

During the reporting period net profit amounted to US $ 29.6 million compared to the net loss of US $ 97 million during the 12 months of 2009.

During 12 months of 2010 adjusted EBITDA reached US $ 309.2 million, compared to US $ 110.5 million for the same period last year. Adjusted EBITDA margin for 12 months of 2010 comprised 22.3% of revenue compared with 11.6% of revenue for the 12 months of 2009.

Markets

URALCHEM is one of the largest Russian exporters of nitrogen, phosphate and NPK fertilizers, providing up to 14% of its total export supplies from Russia.

During the 12 months of 2010 the volume of export sales reached US $ 891.4 million, compared with the volume of export sales of US $ 632.8 million for the 12 months of 2009.

The volume of domestic sales within the 12 months of 2010 reached US $ 316.0 million, compared with the volume of domestic sales of US $ 200.0 million for the 12 months of 2009.

Sales and Production

The production volume of all Group companies for 12 months in 2010 increased by 10.3% compared to the same period in 2009, amounting to a total of 4.861 million tons. Ammonia production increased by 23.8%, and phosphate fertilizers by 635.5%. Excellent results were achieved due to favorable market conditions, growing demand from Russian and foreign consumers.

Sales of commercial products of URALCHEM in 2009-2010 (thousands of tons)

Dmitry Konyaev, CEO of URALCHEM, OJSC commented on the sales of commercial products in 2010: “As a result of last year’s operations, the group of companies URALCHEM ranks first among Russian manufacturers in terms of production of ammonium nitrate and its derivatives and holds second place in terms of production of ammonia and nitrogen fertilizers. We intend to increase the annual output, and by 2015 total production is set to reach 5.6 million tons.”

Financial situation

Cash generated from operating activities (before tax and interest) for the 12 months of 2010 amounted to US $ 134.9 million.

On 31 December 2010 net debt amounted to US $ 1307.9 million. The weighted average interest rate in the loan portfolio for the 12 months of 2010 amounted to 9.07% compared to 9.66% in the same period of 2009.

During the first half of 2011 the Company plans to reduce the net debt by at least 10%.

Annex to the press release about the consolidated financial results for 2010

EBITDA is a profit / loss from financial and economic activities during the reporting period, before deduction of income tax on profits, income and interest costs, depreciation and amortization. "Adjusted EBITDA" is EBITDA for the reporting period before goodwill, profit / loss from associates, profit / loss on foreign exchange differences arising on financial performance and profit / loss on operations with derivative financial instruments. Adjusted EBITDA is operating profit before depreciation and amortization and financial results of operations with derivative financial instruments. In accordance with International Financial Reporting Standards ("IFRS"), depreciation and amortization included in cost structure, and in the selling, general and administrative expenses. IFRS does not require the disclosure and does not describe the calculation of EBITDA and adjusted EBITDA, among other financial indicators, so they can not substitute for net profit for the period when evaluating the results of operations or the measure of cash provided by operating activities when evaluating liquidity. Approach to the calculation of EBITDA and adjusted EBITDA, as described earlier, may not coincide with the approaches used by other companies, therefore, comparability may be limited. We believe that EBITDA and adjusted EBITDA provide useful information to investors because they are indicators of the stability and efficiency of our business and our ability to fund discretionary spending such as capital expenditures, the acquisition of subsidiaries and other investments, as well as indicators of our ability to incur and service debt. IFRS classifies depreciation and amortization to operating costs, while in fact they are distributed to the current period non-cash expenses for the acquisition or creation of fixed assets, incurred in previous periods, and are not affiliated with the movement of funds.

Calculation of EBITDA for the 12 months of 2010 and EBITDA for the 12 months of 2009 (Thousands of US dollars)