In the frames of integration of the overall steel operations of SIDENOR Group under one entity, the Company SIDENOR S.A. announces that pursuant to the decisions of the Boards of Directors dated July 30, 2008, SIDENOR S.A. proceeds with the spin-off and contributes to its subsidiary DEPAL S.A., and, respectively, the latter undertakes, in accordance with the provisions of articles 1-12 of c.l. 1297/1972 setting as the date of the financial statements valuing the contributing assets, the 31st of July 2008:
(A) the industrial division of SIDENOR S.A. whose main object of operations is the processing of steel scrap and the production from it, in the latter s plants, of long steel products as the end product, and
(B) part of the commercial division of "SIDENOR S.A." whose object of operations is to trade and distribute long steel products.