Mittal Steel Co. NV has completed its acquisition of 93.02% of Kryvorizhstal.

Under terms of the share purchase agreement, 3,590,038,755 shares have been transferred to Mittal Steel for a total consideration of UAH 24.2 billion (US$4.84 billion)*. The transaction has been financed out of Mittal Steel's own cash resources and credit lines.

Kryvorizstal is the largest carbon steel long products producer in the Ukraine and the nearby region, producing 7.7 million tonnes of liquid steel, 17.1 million tonnes of iron ore, and 6.7 million tonnes of shipments in 2004. The company had sales of US$1,897 million, EBITDA of US$551 million, EBIT of US$505 million and net income of US$478 million in 2004. The net cash position was US$413 million as of June 30, 2005.**

Following completion of the transaction, Mittal Steel has now taken operational control of Kryvorizhstal. The company announced that it has appointed Mr. Narendra Chaudhary as CEO of Kryvorizstal. Mr. Chaudhary joined Mittal Steel in 1993 and has over forty years of experience in the steel industry, in a wide range of technical and managerial positions. During his time at Mittal Steel, he has been CEO of both Mittal Steel Galati and Mittal Steel Temirtau. Most recently, he was Director of Operations and Maintenance, based in London.

Commenting, Lakshmi N. Mittal, Chairman and CEO of Mittal Steel Co., said: "This is a key, strategic acquisition for Mittal Steel as it provides us with a large size, low-cost production platform in a core and fast growing market. Now the acquisition has been completed, we can immediately start working to improve the competitive position of Kryvorizstal. We have already identified some US$200 million of synergies which we believe can be realized by the end of 2006, largely through implementing improvements to the sales and marketing and procurement divisions. We will now be looking at how additional value can be created in the company over the longer-term, through a variety of means including making strategic investments to improve product mix and quality and increase raw material self-sufficiency.

"I am delighted that Mr. Chaudhary is to become CEO of Kryvorizstal. He is one of the most experienced managers in the steel industry today and has demonstrated in both Romania and Kazakhstan the considerable value he can add to an operation. I am confident he will be equally successful at helping Kryvorizstal realize its full potential."

* Based on an exchange rate of US$1 = UAH 5.0
** All amounts per US$ millions, in this paragraph are unaudited numbers based on Ukrainian GAAP and adjusted to US GAAP

Mittal Steel is the world's largest and most global steel company. With operations in fourteen countries, on four continents, Mittal Steel encompasses all aspects of modern steelmaking, to produce a comprehensive portfolio of both flat and long steel products to meet a wide range of customer needs. It serves all the major steel consuming sectors, including automotive, appliance, machinery and construction. For 2004, Mittal Steel had revenues of US$22.2 billion and steel shipments of 42.1 million tonnes.