Mittal Steel Co. NV submitted a direct offer to the Government of the Czech Republic to purchase 98.96% shareholding in Vitkovice Steel.

Mittal Steel offered a total consideration of Czk 9bn for the majority shareholding in Vitkovice Steel. The offer was submitted on July 1 to the Prime Minister as well as other members of the Czech Government involved in the Vitkovice Steel privatization. In addition to the offered price, Mittal Steel proposed a settlement of all outstanding disputes between Osinek and Vysoke Pece Ostrava by accepting Osinek's previously proposed terms and conditions.

Ondra Otradovec, Director Mergers & Acquisitions, Mittal Steel, said: "We are confident that the offer of Mittal Steel is the best solution for the Czech Government, Osinek, VS and the Ostrava region. Not only do we offer a superior price, but we also offer a full settlement of the ongoing disputes between Osinek and Vysoke Pece Ostrava. Technically, our offer ensures seamless continuity of the steelmaking in the Ostrava region with all benefits retained by local companies and local workers. We believe that the Czech Government will acknowledge all the benefits that Mittal Steel has already contributed to Ostrava region through its restructuring of Nova Hut and will support the proposed offer by Mittal Steel."

Mittal Steel Co. is the world's largest and most global steel company. The company has 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. For 2004, Mittal Steel had revenues of US$22.2 billion and steel shipments of 42.1 million tonnes.