SVST.L Regulatory News (SVST)

25 May 2007 10:56

OAO Severstal25 May 2007 SEVERSTAL Mira str. 30, RU-162600, Cherepovets, Vologda region, RussiaPhone: +7 (8202) 53 14 18, fax: +7 (8202) 53 12 56, www.severstal.com For Immediate Release25 May 2007 Arcelor Mittal and Severstal announce the agreed sale to Severstal of Arcelor Mittal's 25% interest in Severgal Rotterdam/Luxembourg, 25 May 2007 - Arcelor Mittal and Severstal have announcedtoday the agreed sale to Severstal of the 25% minority stake held by Arcelor inSevergal, their joint venture located at the Severstal Cherepovets site. The Severgal joint venture was originally set up to serve the former CISautomotive market. While it has the capacity to produce coated products for boththe industry and the automotive markets, the hot dip galvanising line iscurrently mostly dedicated to supplying the booming domestic industry market. Arcelor Mittal terminates the Extragal(R) License Agreement with Severgal andwill remain a non-exclusive agent for some Severgal products. In addition, Arcelor Mittal and Severstal have agreed to separately pursue theirrespective development plans in the automotive market. About Severstal SeverStal is an international steel producer with a listing on the RussianTrading System and the London Stock Exchange. Incorporated in 1993, the companyfocuses on high value-added and unique niche products and has a successful trackrecord of acquiring and integrating high-quality assets in North America andEurope. SeverStal owns mining assets in Russia, thus securing its supplies ofraw materials. In 2006 SeverStal produced 17.6 million tonnes of steel and had revenues of$12.4bn, PBT of $1.8bn and EPS of $1.27. In April 2007 the company had a marketcapitalisation of $13.6bn. The majority of the company's stock (82.37%) belongs to Alexei Mordashov, withthe remaining 17.63% owned by institutional investors and employees. SeverStal'ssupervisory board has 10 members, five of whom are independent non-executivesincluding a chairman. The company has recently put in place corporate governancesystems which match international standards. OAO SeverStal (Russia) Dmitry Druzhinin, Investor Relations Olga Antonova, Natalia Ivanova, Public Relations Tel (495) 540 77 66 Tulchan Communications (UK) Dominic Fry/ Tom Murray Tel +44 207 353 4200 About Arcelor Mittal Arcelor Mittal is the world's number one steel company, with 320,000 employeesin more than 60 countries. The company brings together the world's number oneand number two steel companies, Arcelor and Mittal Steel. Arcelor Mittal is the leader in all major global markets, including automotive,construction, household appliances and packaging, with leading R&D andtechnology, as well as sizeable captive supplies of raw materials andoutstanding distribution networks. An industrial presence in 27 European, Asian,African and American countries exposes the company to all the key steel markets,from emerging to mature, positions it will be looking to develop in thehigh-growth Chinese and Indian markets. Arcelor Mittal key pro forma financials for 2006 show combined revenues of USD88.6 billions, with a crude steel production of 118 million tonnes, representingaround 10 per cent of world steel output. Arcelor Mittal is listed on the stock exchanges of New York (MT), Amsterdam(MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stockexchanges of Barcelona, Bilbao, Madrid (MTS) and Valencia. Forward-Looking Statements This document may contain forward-looking information and statements aboutMittal Steel Company N.V. including Arcelor S.A. These statements includefinancial projections and estimates and their underlying assumptions, statementsregarding plans, objectives and expectations with respect to future operations,products and services, and statements regarding future performance.Forward-looking statements may be identified by the words "believe," "expect,""anticipate," "target" or similar expressions. Although Arcelor Mittal'smanagement believes that the expectations reflected in such forward-lookingstatements are reasonable, investors and holders of Mittal Steel's securitiesare cautioned that forward-looking information and statements are subject tonumerous risks and uncertainties, many of which are difficult to predict andgenerally beyond the control of Mittal Steel, that could cause actual resultsand developments to differ materially and adversely from those expressed in, orimplied or projected by, the forward-looking information and statements. Theserisks and uncertainties include those discussed or identified in the filingswith the Netherlands Authority for the Financial Markets and the Securities andExchange Commission ("SEC") made or to be made by Mittal Steel, including (inthe latter case) on Form 20-F. Mittal Steel undertakes no obligation to publiclyupdate its forward-looking statements, whether as a result of new information,future events, or otherwise. Contact information Arcelor Mittal Investor RelationsContinental Europe +352 4792 2414UK/Asia/Africa +44 207 543 1172Americas +1 312 899 3569Retail +352 4792 2434Bonds/Credit +33 1 71 92 10 26Contact information Arcelor Mittal CommunicationsE-mail: press@arcelormittal.comPhone: +352 4792 5000Arcelor Mittal Corporate NetherlandsCommunicationsNicola Davidson +44207543 1162 / Leon Melens, Smink, Van der Ploeg & Jongsma,1172 +31 20 647 81 81Luc Scheer +352 47922360 GermanyJean Lasar +352 4792 2359 Phoebe Kebbel, Herring Schuppener, +49 69 92 18 74 77Belgium FranceCharles-Hubert Gernaert, Comfi, Sandra Luneau +33 1 71 92 00 58+32 2 290 90 90Maitland Consultancy: Tiphaine Hecketsweiler, Image 7 +33 1 5370 7470Philip Gawith / Lydia Pretzlik +44 Spain20 7379 5151North America Ignacio Agreda +34 94 489 4162Bill Steers +1 312 899 3817 Oscar Fleites +34 98 512 60 29 Keith Grant +34 639 760 397 This information is provided by RNS The company news service from the London Stock Exchange