Arcelor Completes Sale of its Tubes Business.

Business Editors

LUXEMBOURG--(BUSINESS WIRE)--June 3, 2004

Arcelor and Bagoeta, SL (majority shareholder of CONDUCCIONES Y DERIVADOS, SA (CONDESA)) have completed the sale and purchase agreement relative to the Tubes business of Arcelor Group on June 3, 2004. The companies have obtained the approval of the relevant anti-trust authorities.

Arcelor has sold to Bagoeta SL 100% of the share capital of Arcelor Tubes, S.A., Alessio Tubi, SpA, Exma, S.A. and Aceralia Tubos, SL, as well as 5% of the share capital of Industube (the remaining 5% of the share capital of Industube has been sold to the other partners of the company) and 30% of the share capital of Condesa. The total price of the deal amounts to 58.7 million Euros.

With regard to the remaining 18.84% stake of Condesa owned by Arcelor Group, the parties have mutually granted put and call options.

Arcelor had announced on February 18, 2004 the signature with Bagoeta, SL of an agreement for the sale of the Tubes business of Arcelor Group.

In 2003, the tubes business of Arcelor Group shipped over 1.2 million tons of steel with a turnover of approximately 587 million Euros.

CONDESA is a major European player in the manufacture of tubes.

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.