SOURCE: Arcelor SA

June 27, 2005 02:02 ET

Arcelor SA announces Usinor to Purchase Any and All of its Outstanding $300,000,000 aggregate principal amount of 7 1/4% Bonds due August 1, 2006

Luxembourg -- (MARKET WIRE) -- June 27, 2005 --

 
                                                              27 June 2005

         Usinor to Purchase Any and All of its Outstanding 
              $300,000,000 aggregate principal amount of
                  7 1/4% Bonds due August 1, 2006

Description of the transaction

Usinor (formerly known as Usinor Sacilor), a societe anonyme organized under the laws of the French Republic ("Usinor"), wholly owned by Arcelor, a societe anonyme incorporated under the laws of Luxembourg ("Arcelor") offers to purchase for cash any and all of its $300 million aggregate principal amount of 7 1/4% Bonds due August 1, 2006.

The purpose of the offer is to reduce Arcelor's gross indebtedness and borrowing costs and optimize the use of its cash. Arcelor intends to fund the offer through cash generated from its operations.

Usinor will conduct the offer in accordance with terms and conditions described in its Offer to Purchase, dated 24 June 2005.

About the Arcelor Group

The Arcelor Group (the "Group") was created in February 2002. Arcelor was born out of the amalgamation of three steelmakers, Aceralia, Arbed and Usinor, to create a leading steel company in the global steel industry. The Group is developing its business in four principal sectors: Flat Carbon Steels, Long Carbon Steels, Stainless Steels and Arcelor Steel Solutions and Services ("A3S"). Employing almost 95,000 people in more than 60 countries, Arcelor is a major player in the global steelmaking industry, with output of 47 million tons of steel and sales of 30 billion euros in 2004. Thirty percent of output is produced from scrap through the electric arc furnace, 70% being produced from iron ore. On a proforma basis for 2004, including the Group's new Brazilian and Argentine businesses, sales amount to 31.26 billion euros with output of 51 million tons of steel. The Group is a leading player in all its principal markets: automotive, construction, domestic electrical appliances, packaging and general industry.

Contact Information

Dealer Manager:	               Merrill Lynch & Co.
                               Tel: +212 449 4914 (collect)
                               Merrill Lynch International
                               Tel: +44 207 995 3715

Information and Tender Agent:  Bondholder Communications Group
                               Tel. +1 888 385 BOND (2663) (toll-free USA)
                               Tel. +44 20 7236 0788 (collect)


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