A Strategic Alliance between Nippon Steel Corporation and Nippon Denko Co.， Ltd.

Nippon Steel Corporation
Nippon Denko Co., Ltd.

Today, Nippon Steel Corporation (Head office: Chiyoda Ward, Tokyo; President: Shoji Muneoka, hereinafter referred to as “Nippon Steel”) and Nippon Denko Co., Ltd. (Head office: Chuo Ward, Tokyo; President: Yoichiro Mitsui, hereinafter referred to as “Nippon Denko”) have agreed to further strengthen the alliance between them (hereinafter referred to as the “Alliance”), in order to enhance their respective competitive edge and corporate values.

Nippon Steel and Nippon Denko, which have been far maintaining a close business relationship through trade in manganese ferroalloy, will strive to construct a system that enables proper response to further changes in the materials environment in the future and will endeavor to strengthen their respective business foundations through the Alliance.

An outline of the Alliance agreed upon at this time is as stated below.

Policy goals to be pursued through the Alliance:
1. Stabilize procurement of raw materials (including manganese ore) for Nippon Denko;
2. Provide assistance to Nippon Denko from Nippon Steel and its group companies concerning the development of Nippon Denko’s overseas business;
3. Jointly research and develop with a goal to optimize production and usage methods for manganese ferroalloy;
4. Promote cost reduction in the raw materials procurement and product distribution; and
5. Conclude a long-term sales and purchase agreement for ferromanganese produced by Nippon Denko.

In order to define Nippon Denko’s position within Nippon Steel Group more clearly and to implement the Alliance in a smooth and steady manner, Nippon Steel has decided to increase its holding ratio of Nippon Denko shares (with voting rights) from the present 9.5% to 15%, upon the completion of which Nippon Denko will become an equity method affiliate of Nippon Steel.

For inquiries, please contact the following:
Public Relations Center, General Administration Div., Nippon Steel Corporation:
+81-3-6867-2135, 2146, 2147
General Affairs Dept., Nippon Denko Co., Ltd.:
+81-3-3546-9319

Company Outlines

Nippon Steel Corporation (Securities Code: 5401)
Head Office: 2-6-1 Marunouchi, Chiyoda Ward, Tokyo
Representative Director: Shoji Muneoka
Date of Establishment: April 1950
Common Stock: 419.5 billion yen
Net Sales: 4,769.8 billion yen (FY ending March 2009)
Number of Employees: 15,503 (As of March 31, 2009)

Nippon Denko Co., Ltd. (Securities Code: 5563)
Head Office: 1-13-14 Tsukiji, Chuo Ward, Tokyo
Representative Director: Yoichiro Mitsui
Date of Establishment: January 1935
Common Stock: 11 billion yen
Net Sales: 116 billion yen (FY ending December 2008)
Number of Employees: 813 (As of December 31, 2008)