Signing of the Agreement Concerning Further Strengthening of Collaboration and Cross Share Holding b

Nippon Steel Corporation (Principal place of business: Chiyoda-ku， Tokyo， President: Akira CHIHAYA) (”Nippon Steel”) and Kobe Steel， Ltd. (Principal place of business: Chuo-ku， Kobe， President: Koshi MIZUKOSHI) (”Kobe Steel”) agreed in December of last year to pursue collaboration to improve their respective competitiveness and， till now， have been studying and implementing the joint supply of semi-finished products to Nakayama Steel Works， Ltd.， and studying specific tie-up measures in the areas such as transportation of steel products， procurement of raw materials， machinery and materials， and measures among the neighboring places of operation and subsidiaries and affiliates of both companies.

Both companies have agreed to accelerate the study of those items which have been under study as well as other new items.

Major study items of the collaboration between the two companies are as follows (Any mutually agreeable items will be added from time to time in the future):

1. To strengthen tie-up arrangements among the affiliates of both companies in the field of steel products processing for improving the respective competitiveness of those affiliates， particularly for structuring optimum production/operation on a regional basis.

2. To achieve greater efficiency of the transportation subsidiaries mainly by strengthening tie-up arrangements in respect of sea transport and relay bases.

3. To accelerate both companies’ joint studies on ways to utilize new iron-making and steelmaking processes considering predictable constraints on raw material supplies for blast-furnaces and future environmental issues.

In addition， Nippon Steel and Kobe Steel will supply to Sumitomo Metal Industries， Ltd. hot rolled steel sheet which becomes necessary as a result of the stoppage of the hot rolling mill at its Wakayama Works.

Further， for ensuring these collaboration measures， Nippon Steel and Kobe Steel have signed an agreement concerning cross share holding (about 3，000 million each).

For more information， please contact :
Nippon Steel Corporation
Public Relations Center， Corporate Secretariat Div.
Tel 81-3-3275-5022
Kobe Steel， Ltd.
Communication Center
Tel 81-3-5739-6010