In the fourth quarter of 2011, while TMK continues to see a slowdown in segments related to projects (such as large diameter pipes) as well as in segments driven by general macroeconomic factors (industrial pipes), higher sales volumes, as well as a better product mix will contribute to the quarter on quarter EBITDA growth and a partial recovery of EBITDA margin.

Additionally, the current downward trend in raw materials prices should positively impact 4Q 2011 and 1Q 2012 financial performance. TMK expects around 5% growth vs an original estimation of 7% to 8% in sales volumes for the full year of 2011 mainly as a result of lower than expected volumes of large diameter pipe.

TMK sees different trends on Russian pipe market developments in 2012. E&P budgets of Russian oil companies are expected to grow in 2012 driven by sustainably high oil prices. Demand for large diameter pipe in Russia and the CIS remains uncertain, although a number of major projects by Gazprom and customers in the CIS countries is scheduled to start over the course of next year. Industrial pipe segment performance would depend on general macroeconomic trends.

The US OCTG market outlook also remains positive for the fourth quarter of 2011. Despite economic uncertainty and commodity price volatility, the rig count is expected to remain strong as operators shift further away from dry gas and focus on oil and liquids production. In addition to growth areas like the Permian Basin, Bakken Shale and Eagle Ford Shale, the company sees increasing growth in the Mid Continent plays.

The Company intends to further reduce the level of leverage and optimize its debt profile. Despite some negative developments on global financial markets, TMK continues to refinance at favorable terms and expects to extend the maturities of its debt facilities as planned.