International company Middlesex

CIS countries. He had been trading there through his private businesses and had a wide network of contacts since 1988.

Alikhani’s plan appeared to be ambitious at first. From a small London base he aimed to create a group specializing in trading and finance across a number of industries in the former Russian republics. He saw a big opportunity to provide development finance, western management skills and reliable sources of raw material to newly privatized countries. In October

1993, Alikhani and six Russian contacts put Ј370,000 into MiddleSex. Other investors came up with another Ј250,000. As well as the equity, Alikhani undertook to put enough trading through MiddleSex to earn it Ј1 million gross profit within. Masoud Alikhani and Phil Edmonds earlier had an agreement, once Ј 1 million in the bank, Edmonds would let Alikhani turn

MiddleSex into his own vehicle. Under the terms of Alikhani’s first deal,

MiddleSex supplied raw materials to a Tadjikistan smelter and then exported final goods to the West. This arrangement soon turned to be very profitable and Alikhani began haunting for new ventures.

At that time Alikhani understood that the company had changed its image completely, and had gone to a much higher lever, so it desperately needed a well known person with a great huge worldwide experience. Ant that was the time when Edmonds stood down from the chairmanship and Lord

Owen turned up. A former foreign secretary and long-time European Union peace negotiator in the troubled Balkans .Also has a deep understanding of the mentality of the Slavic people and how to conduct business with them.In 1996 another well known person in business has joint the company.

Fahrad Moshiri, formerly with Ernst & Young and Deloitte & Touche turned up as Managing director in MiddleSex. He was mainly responsible for securing the US$300m contract with OEMK (Oskol Elektro-Metallurgical Kombinat ) and was the key in building the relationship with GAZPROM.

There many more people in the company whose personal worldwide experience has influenced the growth of the company, but it might take me hundreds of pages to describe the significant work they have for the company. I have mentioned, in my opinion, three most important and most affective people in MiddleSex. Once again, I have to say that the success of any company, specially with a case of MiddleSex, lies in its people and how these people effectively manage to bring their past experience into the company.

Steel . The flagship operation.

At the beginning of 1996, MiddleSex entered into a trading agreement with OEMK, one of the most modern and profitable steel mills in Russia, for the export of up to US$300m of steel products per annum. As trading was unfolding successfully, MiddleSex acquired a 7.9% interest in OEMK.

Additionally, its 40 % owned investment vehicle, Interfin, holds another

6.6% of OEMK, which gives MiddleSex a further 2.6% indirect interest.

In august 1996, MiddleSex acquired DRI (IOM) Ltd. whose sole asset was the exclusive rights to export 40,000 metric tons per month (±10%) of thermally passivated direct reduced iron (DRI) pellets produced by OEMK.

Direct iron reduction technology is becoming increasingly popular as it significantly improves composition, reduces impurity contents and consequently enhances steel quality. DRI pellets are used as replacement for scrap material n modern electric arc furnace steel mills. Hence, in addition to steel products, MiddleSex also controls the exports of OEMK’s

DRI pellets. DRI trading is carried out through MiddleSex’s 100% owned subsidiary, Oskmet (DRI) Limited.

In late 1996, MiddleSex acquired WolffSteel Ltd., an established international steel trading business, with a world-wide distribution network of clients.

As a result, MiddleSex currently records steel profits from three sources : OEMK export contacts, DRI exports contacts and additional

WolffSteel trading :

|Company |Gross Profit (Ј’000) |

| |1996 |1997 |1998 (est) |1999 (est) |