Luxembourg -- (MARKET WIRE) -- 10/27/2005 -- Excellent results in an adverse market environment and good prospects
. Strong performance in a difficult market environment
. Consistent commercial policy
. Expansion in Latin America improves results and cost base
. Very strong results confirmed for 2005
. Priority to value creation

Arcelor posts a remarkable EUR 1.1 billion EBITDA for the third quarter and EUR 4.5 billion for the first nine months of the year. This result was achieved in a context of adverse market conditions. The third quarter cumulated higher costs due to strong raw materials price increases, unfavourable market conditions due to excess inventories, weak demand and seasonal effects.

This performance clearly reflects the resilience of the "new Arcelor". It is essentially due to its product mix, its expansion in Brazil and Argentina, growth areas which combine low cost basis and high end markets.

Flat carbon steel prices reached their low point in September while shipments have started recovering with improved market conditions. Shipments and therefore production levels have continued to be adjusted to market needs and should increase only moderately during the last quarter except seasonality effects.

Furthermore, Arcelor is going to complete the creation and listing of Arcelor Brasil in November, combining flat carbon activities and long carbon steels. Finally, Arcelor has recently acquired control of Acesita, the sole South American stainless producer.

Luxembourg, October 27, 2005 - The board of directors of Arcelor met on October 26, 2005 under the chairmanship of Joseph Kinsch and reviewed the Group consolidated accounts for the third quarter of 2005.

Consolidated net result, Group share for the third quarter of 2005, was EUR 657 million, compared to EUR 629 million for the same period of last year.

Consolidated revenues for the Group for the first nine months of 2005 amounted to EUR 24,259 million compared to EUR 21,745 million for the same period last year (+6.7% on a comparable basis). Net consolidated result, Group share, was EUR 2,594 million for the first nine months of 2005, compared with EUR 1,494 million at September 30, 2004.

At EUR 7,481 million for the third quarter of 2005 compared to EUR 7,152 million for the same period last year, consolidated revenues increased by 4.6% (0.9% on a comparable basis). Despite a severe drop in shipped volumes, this evolution confirms the good resilience of average selling prices. Consolidated gross operating result for the third quarter amounted to EUR 1,122 million compared to EUR 1,098 million for the third quarter 2004, or a 15.0% margin against a 15.4% margin for the same period of 2004 showing good control of inventories and progression on management gains despite the strong slowdown in production. Gross operating results incorporate several non-recurring items (capital gains of EUR 96 million due to the disposal of the Spanish facilities).

Consolidated gross operating result for the nine months up to September 30th amounted to EUR 4,505 million or 18.6% margin compared to EUR 2,877 million or 13.2% for the same period of last year.

Quarterly consolidated operating result was EUR 800 million for the third quarter of 2005 versus EUR 835 million for the equivalent period last year, which corresponds to a 10.7% margin versus 11.7% respectively.

Consolidated operating result for the nine months up to September 30th amounted to EUR 3,443 million or 14.2% margin compared to EUR 2,072 million or 9.5% for the same period of last year.

After a financial result of EUR -62 million, a contribution from associates of EUR 90 million and income tax of EUR 87 million, consolidated quarterly net result, Group share was EUR 657 million compared to EUR 629 million for the same period last year.

Key Figures

+-------------------------+------------------+------------------+
|In millions of euros | 3rd Quarter 2004| 3rd Quarter 2005|
+-------------------------+------------------+------------------+
|Revenue | 7,152| 7,481|
+-------------------------+------------------+------------------+
|Gross Operating Result | 1,098| 1,122|
+-------------------------+------------------+------------------+
|Operating Result | 835| 800|
+-------------------------+------------------+------------------+
|Net Result, Group share | 629| 657|
+-------------------------+------------------+------------------+
|Earnings per Share (in E)| 1.09| 1.07*|
+-------------------------+------------------+------------------+
+-------------------------+------------------+------------------+

+---------------+---------------+
| 9 months 2004| 9 months 2005|
+---------------+---------------+
| 21,745| 24,259|
+---------------+---------------+
| 2,877| 4,505|
+---------------+---------------+
| 2,072| 3,443|
+---------------+---------------+
| 1,494| 2,594|
+---------------+---------------+
| 2.87| 4.23**|
+---------------+---------------+
+---------------+---------------+

*taking into account an average number of 639 774 327 of outstanding shares and excluding 25 561 531 treasury shares over the period

**taking into account an average number of 639 774 327 of outstanding shares and excluding 26 180 522 treasury shares over the period

Net Financial Debt

At EUR 1,428 million, net financial debt decreased by EUR 1,084 million at September 30, 2005 compared to EUR 2,512 million at December 31, 2004 and by EUR 385 million compared to June 30, 2005. The net debt-to-equity ratio (including minority interests) decreased to 0.09 from 0.12 at June 30, and 0.20 at December 31, 2004.
Cash-flow from operations amounted to EUR 2,911 million for the first nine months of the year to be compared with EUR 2,004 million for the first six months of 2005 and EUR 3,205 million for the full year 2004. This favourable evolution is explained by margin improvements and control of working capital requirements, mainly through management of inventory levels despite raw materials cost increases.
Capital expenditures at EUR 1,249 million (intangible, tangible) for the first nine months include the expansion of CST in Brazil.

+-------------------------+-------------------+---------------+
Business prospects

In this environment, order books for flat carbon products are improving and inventories are at normal levels. Good improvements are already observed for long carbon products where inventories are low. With imports remaining stable, apparent consumption should rebound to align with real consumption.

With the growth of Arcelor in Brazil and Argentina, the Group is now the number one Latin American player, and with the significant progress achieved by most of its European operations, Arcelor confirms that 2005 results will show a very strong performance and an ability to adapt to the cycles. The group will pursue its active and disciplined approach to external growth opportunities across the world, evaluating specific projects.

Arcelor is a leading player of the global steel industry. With a turnover of 30 billion euros in 2004, the Group holds leading positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The Group, 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 customers. Arcelor employs 94,000 associates in over 60 countries. The Group 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.

This press release contains certain forward looking statements regarding anticipated market evolution and the future prospects of Arcelor. While these statements are based on the Company's best estimations as of the date hereof, actual results will vary as a function of market conditions, the action of competitors, consumer demand, steel prices, economic conditions and other factors.

Arcelor prepares its consolidated financial information under International Financial Reporting standards (" IFRS ") since 2002. Revised IFRS standards are applicable as from 2005 in the perspective of the deadline fixed by the European Union. Those changes have had no impact on the Group consolidated financial position of the first three quarters of the year and should not have any significant impact on the Group consolidated financial position of the last quarter.

Arcelor agreed with the Brazilian pension fund Fundação Sistel de Seguridade Social ("Sistel") to acquire the 12% of the voting capital of Acesita held by Sistel for R$45 per share. As a result, Arcelor will become the controlling shareholder of Acesita, holding 76% of the common (voting) shares of Acesita and 40 percent of the total capital of that company.

The move follows the agreement, on October 6, 2005, with Previ and Petros, two other Brazilian pension funds to acquire common shares representing 25% of the Brazilian stainless steel producer's voting capital and 8% of its total capital for R$ 45 per share.