Siam United Steel Becomes Consolidated Subsidiary of Nippon Steel.

Tokyo, Japan, Oct 18, 2006 - (JCN) - Nippon Steel Corporation has announced its decision to acquire 7,527,000 shares of the issued capital stock of The Siam United Steel (1995) Co., Ltd. (SUS), a Thai company manufacturing the cold-rolled sheet in coil in which NSC has 36.3% equity holdings, from The Siam Cement Public Company Limited (SCC), its partner on the Thai side, thus increasing its equity ratio to 44.7% and making SUS a consolidated subsidiary of NSC.

Thailand is the largest steel market among ASEAN member countries, with good prospects for future growth chiefly in high value added steels for automotive, home-appliance, OA and other such uses. Therefore, Thailand is one of the most important overseas markets for Nippon Steel Group.

SUS plays a central role of Nippon Steel Group, attracting growing demand for high-class steels in Thailand and serving as a strong base for exports to neighboring countries in Southeast Asia. As a consolidated subsidiary of NSC, SUS will share in Group strategies to a much greater extent, and enhancing its corporate worth as a member of Nippon Steel Group.

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