Arcelor today announces its 2006-2008 strategic plan to maximise return for its shareholders. Key highlights of the plan include:
· Target normalized EBITDA of Euro 7 billion, with further upside potential
· Sustainable and resilient free cash-flow generation of Euro 4.4 billion per annum
· Continuation of progressive dividend policy: 30% normalized payout ratio
· Targeting only value accretive acquisitions with ROCE in excess of 15%
· Commitment to return excess cash to shareholders, including all proceeds from disposal of non-core assets

A commitment to value creation…
A significant acceleration of cash-flow generation and the dynamic management of the portfolio of industrial assets are to deliver free cash-flow that will be available to increase shareholder returns.

Arcelor’s growth initiatives will be executed with a disciplined focus on highly value accretive opportunities consistent with its strategic vision. The group will pursue opportunities to strengthen its global leadership in key strategic markets such as the automotive industry and will continue to seek regional leadership in profitable and high-growth areas throughout the world. Arcelor has strengthened the performance potential of its flat stainless business through investments (Carinox steel plant in Belgium) or acquisitions (Acesita in Brazil). The group will pursue the strategic review it has engaged into in view of exploring all options that could best unlock value for its shareholders.

…building on a proven and highly successful business model

Four years after its creation, Arcelor has fully demonstrated its resilience across the industry cycle and delivered beyond promises. Arcelor has built an innovative business model designed to maximise cash-flow generation throughout the cycle and deliver sustainable profitability through focus on market consolidation in high margin products. Driven by a strong industrial project, Arcelor has implemented a very active portfolio management and gives priority on value before volumes. The group has strengthened its position in flat carbon products especially for the automotive industry, successfully tapping into new growth territories (North and South America, China...). Additionally, Arcelor holds a unique market position in steel distribution around the globe and delivers a continuous strong performance in the long carbon steel business.

In Latin America, Arcelor has already created Euro 3.4 billion of additional value, with further promising expansion projects underway. The acquisition of Canadian steelmaker Dofasco builds on a strategic vision of global leadership and the integration of the company into the international Arcelor industrial set-up promises strong value creation opportunities. This investment allows Arcelor to develop a major position in the world largest automotive market.

Note to editors:
1. The full presentation that will be shown to investors is available on investorrelations.arcelor.com.
2. Members of the media are invited to attend a conference call with Arcelor CFO Gonzalo Urquijo on Monday, February 27, 2006 at 13h00 CET. Call details on press.arcelor.com.