Arcelor has reached a Framework Agreement with Corporación Gestamp, SL in order to reorganize its stake in GONVARRI Group. This Agreement entails:

a) The reduction of the participation of Arcelor Group in Gonvarri Group from 60% to 35%. Thus the shareholding structure of Gonvarri Group will be fixed in the following manner: Arcelor Group (through its subsidiaries Usinor and Aceralia) 35% and Corporación Gestamp, SL 65%.

b) The sale by Arcelor Group to Gonvarri Group of its 15% stake in Hierros y Aplanaciones, SA.

c) The purchase by Arcelor Group of (i) a 50% stake of the share capital of Laminados Gonvelsa, SL and (ii) certain assets used by the latter Company.

Following the authorization granted by the Board of Directors of Arcelor SA held on September 17, 2004, the Framework Agreement will be implemented during the fourth quarter of 2004 through the realization of the corresponding corporate and contractual acts.

The net income to be perceived by Arcelor Group as a consequence of the above mentioned deals will amount to approximately 118 million euros.

After the implementation of the deal, Arcelor and Corporación Gestamp will continue their fruitful collaboration through their common joint venture Gonvarri.

Gonvarri Group is the leader in the Spanish market of distribution and commercialization of iron and steel products, with a turnover of 1.25 billion euros and shipments of 2.44 million metric tons of steel in 2003. Employing more than 2000 employees, it is also active with steel service centres in Brazil, Italy, Portugal, Poland and Morocco.

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.

Investor relations
Martine Hue
+352 4792 2151
00 800 4792 4792