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Dofasco and Arcelor Plan Automotive
Galv Line for Southern U.S.

April 30, 2004 — Dofasco Inc. has been working with Arcelor to evaluate the joint construction and operation of a greenfield automotive galvanizing line in the United States. The two companies are in the final stages of site evaluation.

The new facility would serve key automotive customers and supply the growing automotive industry in the Southern U.S. The facility will be capable of producing 500,000 tons per year of galvanized steel for the automotive industry, primarily exposed galvanized products, including Arcelor's proprietary product, Extragal^(TM). Dofasco is the exclusive licensee in North America for Extragal^(TM), which is used in high-value exposed automotive applications.

"This type of galvanizing facility has the potential to be an excellent extension of Dofasco's proven Solutions in Steel^(TM) strategy which has made Dofasco one of the most profitable steelmakers in North America," said Don Pether, Dofasco's President and CEO. "It will be a targeted investment in the high value-added segment of the automotive steel supply chain, and will meet established and future demand."

Dofasco and Arcelor are currently joint owners of DoSol Galva Limited Partnership, a world-class galvanizing line at Dofasco's Hamilton operations with annual capacity of 500,000 tons, which produces Extragal^(TM) for exposed auto body panels.

"This venture is consistent with our strategy to apply innovative technologies that focus on solutions that address our customers' value chain," said Pether. "This approach has created sustainable value for Dofasco shareholders and differentiates the company from its North American competitors."

The proposal, which will have to meet each company’s respective, will be subject to final approval by both companies.

Dofasco is a leading North American steel solutions provider. Product lines include hot rolled, cold rolled, galvanized, Extragal^(TM), Galvalume^(TM) and tinplate flat rolled steels, as well as tubular products, laser welded blanks and Zyplex^(TM), a proprietary laminate. Dofasco's wide range of steel products is sold to customers in the automotive, construction, energy, manufacturing, pipe and tube, appliance, packaging and steel distribution industries.

Headquartered in Luxemburg, Arcelor is the world's largest steel producer, with a turnover of 25.9 billion euros and shipments of 40.2 million metric tons of steel in 2003. Employing 98,000 employees in over 60 countries, the company is a major player in all its main markets: automotive, construction, household appliances and packaging as well as general industry. Arcelor places its commitment to sustainable development at the heart of its strategy and ambitions to become a benchmark for economic performance, labor relations, social responsibility and environmental protection in the world of steel.

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