First Quarter 2005: Arcelor posts record quarterly results
•Highest quarterly results since Arcelor’s creation
•Net result, group share : 934 million euros
•Further reduction of net debt

Arcelor delivered excellent first quarter results in a global industry
environment influenced by marked by last year’s exceptional industry growth
rates.

Net result, group share, at EUR 934 million compared to EUR 234 for the first
quarter of 2004 confirms the good performance of all business segments.
A further reduction of net financial debt by EUR 241 million on March
31, 2005 to EUR 2,271 million since December 31, 2004 leads to a further
strengthening of the balance sheet, thus positioning the Group well for
external growth projects.

On March 31, 2005, annualized post-merger synergies attain EUR 580 million,
well ahead of schedule.

Throughout the quarter, Arcelor pursued its initiatives to structurally
strengthen the competitiveness of its European operations while at the same
time preparing further development in areas with a high growth potential.
Active portfolio management continues with the signature, at the beginning
of the second quarter, of an agreement with the Alfonso Gallardo Spanish
group for the sale of three rebars and mesh production units (Corrugados
Azpeitia, Corrugados Getafe and Corrugados Lasao) which shipped
1.7 million tons in 2004.

The current situation of steel markets is the consequence of market
developments observed at the end of 2004. China started reducing
inventories after massive imports and growth of domestic production
capacities, limiting imports during the second half of 2004. At the same time
selling prices in the US were reduced, driven by an offtake drop due to
excess inventories.

In Europe, final demand grew approximately 3% in 2004. Tensions on raw
materials and freight availability encouraged end users and some
distribution channels to buy quantities in excess to market needs andഊimports surged at the same time leading to swelling inventories at the end of
2004 in a climate of weaker European demand.
In this context, Arcelor has decided to reduce European flat carbon steel
production by at least 1 million tons and long carbon steel production by
approximately 0.5 million tons in the first half of 2005, in order to accelerate
the necessary adjustment of inventory levels to the bare needs of the market.

Outlook
The overall development of the global economy should be satisfactory in 2005 with a possible contraction in Western countries, more specifically in Europe.
For steel, tensions on availability and cost of raw materials and freight will continue in 2005, again driven by a strong Chinese consumption and will gradually impact costs for the mills from the second quarter to the end of the year.
Under the pressure of growing imports and substantial inventories, Arcelor has initiated a slowdown of production at the end of February, shutting down or idling several mills across Europe, aiming at removing approximately 1 million tons of flat carbon steels and half a million tons of long carbon steels during the first half year. Furthermore, the company has accelerated efforts in management gains that will continue to improve its cost base. Announced production cuts by producers in Europe and the U.S are expected to restore
market balance in the third quarter. Hence, after an exceptional year 2004, growth this year should be more moderate for the steel industry in general. 2005 is expected to be a very good year for Arcelor with the company benefiting from contracts negotiated at the end of 2004 for a substantial portion
of its flat carbon activities as well as from the full year consolidation of CST in Brazil and Acindar in Argentina where prospects are excellent.

Verkopen door Arcelor,
Arcelor has signed an agreement with Alfonso
Gallardo Group for the sale of Corrugados Azpeitia, Corrugados Getafe and
Corrugados Lasao, three rebar and mesh plants located in Spain, to Alfonso
Gallardo Group.

This transaction reflects Arcelor’s active management of its business portfolio.
The agreement is subject to approval by the anti-trust authorities and to the
completion of the relevant due diligences.

Corrugados Azpeitia and Corrugados Getafe each comprise a steel shop and
rolling mills, while Corrugados Lasao has facilities for the production of
welded mesh. The three companies’ shipments totalled 1.7 million tons last
year. They supply steel products for the construction sector, serving mainly
the Spanish market.

The Alfonso Gallardo Group, which employs 1500 people, is one of the major
actors of the Spanish steelmaking sector, with a capacity of 2.5 million tons of
finished products. Its 2004 sales amounted to 600 million euros.
Arcelor is a leading player of the global steel industry. With a turnover of 30 billion euros in 2004, the company holds leading positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company - number one steel producer in Europe and Latin America - ambitions to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its global customers.
Arcelor employs 95,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labour relations and social responsibility.

Corporate Communications Investor Relations
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E-mail : press@arcelor.com 00 800 4792 4792 (toll-free
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