Arcelor Raises Interest in Morocco Steelmaker Sonasid in Association with SNI and Local Partners

LUXEMBOURG & CASABLANCA, Morocco--()--June 1, 2006--On 31 May 2006, Arcelor (ISIN:LU0140205948) (Pink Sheets:ARLOF) (Paris:LOR), Societe Nationale d'Investissement (SNI, Morocco) and the other main shareholders of Sonasid (Societe Nationale de Siderurgie) including MAMDA-MCMA, Axa Assurances Maroc, RMA-Watanya, CIMR and Attijariwafa bank transferred their interests in Sonasid to an ad hoc holding company on the basis of a price of MAD 1,350 per Sonasid share. The transactions were pursuant to the strategic partnership for the development of Sonasid agreed on by these companies on March 3, 2006. The holding company now owns 64.86% of Sonasid's equity.

Arcelor also subscribed to a reserved capital increase in cash, following which it owns 50% of the holding company, while the remaining 50% is owned by the other main shareholders of Sonasid, including SNI.

Roland Junck, Senior Executive Vice President of Arcelor, commented: "The transaction carried out in agreement with our Moroccan partners will provide a basis for the consolidation and continued development of Sonasid's market positions with the benefit of technology transfers and Arcelor's expertise in long carbon steel products. It will also enable Arcelor to strengthen its positions on markets with high growth potential."

Hassan Bouhemou, Chairman and Chief Executive of SNI, commented: "This ambitious project will create value for Sonasid and all its shareholders. We are also in discussion with Arcelor concerning possibilities for Sonasid to provide a base for further development in the region."

In accordance with Moroccan stock-market regulations, the holding company will make a public tender offer for the purchase of all remaining Sonasid shares.

This offer, which remains conditional on the acceptance of market authority Conseil Deontotogique des Valeurs Mobilieres, will be on the same terms as applied to the transfers of Sonasid shares to the holding company by Arcelor and other main shareholders, with the price offered thus MAD 1,350 per share.

About Sonasid

Sonasid (Societe Nationale de Siderurgie) is the mainstay of Morocco's steel industry, taking the number-one place for long steel products including concrete reinforcement and wire rod. Annual production capacity is around 1.4 million metric tons and 2005 sales revenues were close to MAD 4.7 billion or approximately EUR 433 million(1). Sonasid is listed on the Casablanca stock exchange, with market capitalization on 30 May 2006 close to MAD 7.3 billion.

About Societe Nationale d'Investissement

Founded in 1966, SNI (Societe Nationale d'Investissement) is a financial holding company listed on the Casablanca stock exchange. An active participant in the projects creating value for the country, its main equity investments are in ONA, Lafarge Maroc and Sonasid. It is the main shareholder of ONA, Morocco's leading private financial and industrial group. Consolidated revenues for the year to December 31, 2005 amounted to MAD 1.9 billion or approximately EUR 176 million, and consolidated net result came to MAD 681.5 million or approximately EUR 62 million.

About Arcelor

Arcelor is the number one steel company in the world with a turnover of 32.6 billion euros in 2005. The company holds leadership 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. In 2006, Arcelor employs 110,000 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.

For more information visit www.arcelor.com

(1) EUR 1 = 10.9085 dirham at 31 December 2005

Contacts

Arcelor
Corporate Communications, +352 4792 5000
Patrick Seyler, +352 4792 2360
Luc Scheer, +352 4792 4455
Jean Lasar, +352 4792 2359
press@arcelor.com
or
Spain
Ignacio Agreda, +34 94 489 4162
Oscar Fleites, +34 98 512 60 29
or
France
Sandra Luneau, +33 1 71 92 00 58
or
Brasil
Eimar Magalhaes, +55 31 3219 1257
or
Investor Relations
Martine Hue, +352 4792 2151
Toll free from the EU and Switzerland, 00 800 4792 4792
investor.relations@arcelor.com
or
France, +33 1 71 92 0090
or
Brasil
Christiano Woelffel, +55 31 3219 1245
or
SNI
Financial Communication
Ms Fakhita Drissi, + 212 22 43 21 00
f.drissi@ona.co.ma

Contacts

Arcelor
Corporate Communications, +352 4792 5000
Patrick Seyler, +352 4792 2360
Luc Scheer, +352 4792 4455
Jean Lasar, +352 4792 2359
press@arcelor.com
or
Spain
Ignacio Agreda, +34 94 489 4162
Oscar Fleites, +34 98 512 60 29
or
France
Sandra Luneau, +33 1 71 92 00 58
or
Brasil
Eimar Magalhaes, +55 31 3219 1257
or
Investor Relations
Martine Hue, +352 4792 2151
Toll free from the EU and Switzerland, 00 800 4792 4792
investor.relations@arcelor.com
or
France, +33 1 71 92 0090
or
Brasil
Christiano Woelffel, +55 31 3219 1245
or
SNI
Financial Communication
Ms Fakhita Drissi, + 212 22 43 21 00
f.drissi@ona.co.ma