18 October 2006

Novolipetsk Steel and Duferco are in talks to create a joint venture

OJSC Novolipetsk Steel announced today that it is in discussions with Duferco Participations Holding Limited (“Duferco”) to create a joint venture that would acquire certain steel production facilities currently owned by Duferco in Europe and the United States. The main companies expected to be acquired by the joint venture include Duferco Farrell Corporation (USA), Carsid SA (Belgium), Duferco Clabecq SA (Belgium), Duferco La Louviere SA (Belgium), Duferco Coating SAS (France), Sorral SA (France), Acciaierie Grigoli S.p.a. (Italy) and Duferco Transformation Europe (France).

The transaction, which is subject to the negotiation and execution of a definitive agreement and competition and other approvals, is expected to be completed by the end of the year.

No further announcement is expected to be made until the execution of a definitive agreement for the transaction.