March 2006 — Arcelor, Société Nationale d'Investissement (SNI, Morocco) and the reference shareholders of Sonasid (MAMDA-MCMA, Axa Assurances Maroc, RMA-Watanya, CIMR, and Attijariwafabank) recently signed a strategic partnership agreement for the development of Sonasid (Société Nationale de Sidérurgie).

The main objective of the agreement is to consolidate and develop Sonasid’s position on the Moroccan market and to allow it to benefit from the transfer of Arcelor's technologies and skills in the long carbon steel product sector. Arcelor and SNI have also agreed to jointly analyze the possibility of Sonasid becoming a platform for future developments in the region.

It is anticipated that this project will be value-accretive for Sonasid and for all its shareholders. It will enable Arcelor to strengthen its positions in markets with a high growth potential.

The agreement foresees, in particular, that, subject to the fulfillment of certain conditions, Arcelor, SNI and the reference shareholders will group their respective stakes in Sonasid's capital by transferring their Sonasid shares, at a price of MAD 1,350 per share, to a holding company specifically created for the purpose.

Concurrently, Arcelor will subscribe a reserved all-cash capital increase, after which the capital of the holding company will be distributed 50/50 between Arcelor and the group of shareholders formed by SNI and the current reference shareholders of Sonasid. These operations are conditional upon the authorization of the competition authorities.

At the end of this stage, the holding company will hold 64.86% of Sonasid's capital.

In compliance with the Moroccan stock exchange regulations, the holding company will make a take-over bid for all the remaining shares of Sonasid. The conditions for this take-over bid will the same as for the transfers of Sonasid shares to the holding company by Arcelor, SNI and the reference shareholders, i.e. MAD 1,350 per share. This operation will be subject to the decision of the Conseil Déontologique des Valeurs Mobilières regarding the admissibility of the bid.

Société Nationale de Sidérurgie (Sonasid) holds a leading position in the long products sector (rebars and wire-rod), with a production capacity of around 1.4 million tonnes per year. The company is listed on the Casablanca stock exchange, and its current market capitalization amounts to close to 5.2 billion dirhams.

Created in 1966, Société Nationale d'Investissement (SNI) is a financial holding company listed on the Casablanca stock exchange, which actively participates in projects that are value accretive for the country. The main items in SNI's portfolio are its investments in ONA, Lafarge Maroc and Sonasid. The company is the main shareholder of Groupe ONA, the first private industrial and financial group in Morocco.

Arcelor holds leadership positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company — number one steel producer in Europe and Latin America — ambitions to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its global customers. Arcelor employs 96,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labor relations and social responsibility.