Integration of the Stainless Steel Businesses of Nippon Steel and Sumitomo Metals

Nippon Steel Corporation (place of business: Chiyoda-ku， Tokyo， president: Akira Chihaya) and Sumitomo Metal Industries， Ltd. (place of business: Chuo-ku， Osaka， president: Hiroshi Shimozuma) signed the basic memorandum with a view to integrating both companies’ stainless steel businesses， in June of this year. Since then， studies have been conducted by the Business Integration Study Committee， and now reaching an agreement to implement the business integration of both companies’ stainless steel businesses， they have entered into a definitive agreement therefor.

Its outline is as follows:

1. Company Name:
Nippon Steel Sumikin Stainless Steel Corporation (provisional name)
2. Purpose of integration:
Structural strengthening of the profit base of the stainless steel businesses of both companies.
3. Subject business:
Stainless steel sheets， medium and heavy plates， round bars， and slabs (provided that Sumitomo Metals’ businesses at Naoetsu and Kokura are excluded).
4. Scale of business:
Sales of approx. 150 billion/year， production of approx. 1 million tons/year (on an actual output basis).
5. Date of integration:
October 1， 2003
6. Method of business integration:
Joint Shinsetsu Bunkatsu (joint establishment of a new company by corporate split)
7. Share allotment ratio:
Nippon Steel 80 : Sumitomo Metals 20


Please direct any inquiries on this matter to the following:
Public Relations Center， Corporate Secretariat Div.， Nippon Steel Corporation: Telephone: 03-3275-5022
Public Relations Group， PR & IR Div.， Sumitomo Metal Industries， Ltd.: Telephone: 03-4416-6115