March 2006 — Chinese steelmaker Laiwu Steel Group Ltd. has agreed to sell a 38.41% stake in Laiwu Steel Corp. to Arcelor.

Under terms of the share purchase agreement, Arcelor will acquire 354,236,546 legal person shares at a price of RMB 5.888 per share for a total consideration of RMB 2.085.760.530,86. The all-cash consideration is subject to adjustment based on the net asset value at a date close to the closing of the transaction.

At the signing ceremony in Jinan, Arcelor Senior Executive Vice President Roland Junck said, "This move comes as a result of Arcelor's global long term growth strategy. This partnership with Laiwu gives us an opportunity to contribute to the tremendous development potential of China; the world's largest and fastest growing steel market. The investment in Laiwu Steel Corp. will become a key operational platform to better serve our Chinese customers.

Laiwu Steel Corp. will benefit from the technology and innovation leadership, powerful sourcing and extensive global commercial network of Arcelor to further boost its operational excellence. Laiwu Steel Corporation will for instance gain access to Arcelor's product and process technology as well as to its expertise in environmental protection and management systems.

Closing of the transaction is subject to the regulatory and governmental approvals and waivers of the competent authorities in P.R. China.

Laiwu Steel Corp. is a listed subsidiary of Laiwu Steel Group., Ltd. For the nine months until September 30, 2005, Laiwu Steel Corp.'s main business revenue reached RMB 14.078 billion. With the addition of its recently commissioned heavy section mill, Laiwu Steel Corp. is China's largest producer of sections and beams.

Active in the production of long and flat carbon steel products, Laiwu Steel Group., Ltd. employs a total of 41,000 associates. In 2005, the Group produced over 10 million tonnes of steel.

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 — intends 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.