SOURCE: Arcelor SA

June 26, 2006 11:47 ET

Strategic Alliance Agreement

Luxembourg -- (MARKET WIRE) -- June 26, 2006 --

                     ARCELOR PRESS RELEASE
As announced on May 26, 2006, Arcelor entered into a Strategic Alliance Agreement (SAA) with Alexey Mordashov. This agreement remains enforceable despite Arcelor's Board of director's recommendation of Mittal Steel's revised offer.

Arcelor shall fully abide by its commitments and obligations under the SAA, including by maintaining the June 30 shareholders meeting which is designed to allow Arcelor shareholders to express their views vis-a-vis the SeverStal transaction. The SAA provides that such shareholders meeting cannot be adjourned of cancelled by Arcelor.

Consequently, Arcelor invites all shareholders wishing to express their views on the SeverStal transaction, as announced on May 26, to participate in such meeting in person or by proxy and reminds them that the ultimate date for the filing of the appropriate documentation and voting instructions is June 28, 2006.

Arcelor indicates that until such date, shareholders may change or amend any voting instructions they would have already sent, in the same way as they sent the original ones.

Arcelor reiterates that the SAA may be terminated in particular in the following manners:

 1. by mutual consent of the parties;
 2. by Mr. Mordashov following the recommendation by the Board of
    Directors of Arcelor of the revised Mittal Steel offer;
 3. by both parties in the following events:
     a. at the June 30 shareholders meeting, shareholders representing
        more than 50% of the outstanding share capital of Arcelor shall
        have voted against the SeverStal transaction;
     b. in case Mittal Steel acquires 50% or more of the shares of
        Arcelor on a fully diluted basis, i.e. including the shares
        issued or to be issued to Mr. Mordashov, as applicable
As previously announced on June 19, 2006, the Board of Directors of Arcelor reserved the right to convene and extraordinary shareholders meeting in order to allow its shareholders to decide on the distribution to the Arcelor shareholders of €6.5 billion in case the Mittal Steel offer was not successful. Arcelor indicates that if the now recommended revised Mittal Steel offer was successful, it shall not proceed with such distribution.

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