ANNOUNCEMENT

               SIDENOR FURTHER EXPANDS ITS STAKE IN THE BALKANS

Following the strategy for its expansion in the Balkan markets, SIDENOR SA informs the investor community of the increase of its participation to 100% in the subsidiary in FYROM, DOJRAN STEEL Ltd, in which participated until now by 75%.

The DOJRAN STEEL facilities are located in Nikolic, F.Y.R.O.M., at about 80 kilometres' distance from Thessaloniki and include a long products rolling mill with an annual production capacity of 200,000 tonnes, a wire mesh unit with an annual production capacity of 20,000 tonnes and a lattice girders unit with an annual production capacity of 10,000 tonnes.

DOJRAN STEEL cover the needs for concrete reinforcement products in F.Y.R.O.M., Kosovo and Albania, while the strategically chosen location of the plant ensures favourable import conditions of raw materials and sales of final products, with low transport costs.