Arcelor and the Turkish pension fund Ordu Yardimlasma Kurumu (OYAK) have agreed that Arcelor will acquire 41% of Ataer Holding AS, a wholly owned OYAK subsidiary that was founded to acquire a 49.29% equity stake of Eregli Demir ve Celik Fabrikalari AS (Erdemir).

This move will allow Arcelor to develop its position in the growing Turkish and regional steel markets, leveraging the performance of the high quality assets of Erdemir. The Turkish steelmaker will benefit from Arcelor’s technology and innovation leadership, powerful sourcing and extensive global commercial network to further boost its operational excellence.

The price offered by Oyak for Erdemir shares in a public auction organized by the Turkish Privatization Administration on October 4, 2005, (USD 2.77 billion for a 46.12% stake) will be the reference for the acquisition by Arcelor of the stake in Ataer. The transaction is subject to various regulatory approvals, including the Turkish Competition Authority. Further details will be disclosed upon the closing of the transaction between Arcelor and Oyak.

In the context of the privatization process, Oyak additionally obtained the right to acquire 3.17% in Erdemir from the Development Bank of Turkey (TSK), allowing it to acquire a total equity stake of 49.29% in Erdemir. Separately, Arcelor holds approximately 5% of the capital of Erdemir.

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Arcelor is a leading player of the global steel industry. With a turnover of 30 billion euros in 2004, the company holds leading 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 — aspires 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 94,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and aspires to be a benchmark for economic performance, labor relations and corporate social responsibility.