Sumitomo Metal Industries, Ltd. and Sumitomo Corporation win contract to supply UOE line pipe for Nord Stream Pipeline
-Supply for large pipeline project which links Russia and the European Union -

Sumitomo Metal Industries, Ltd. (Representative Director & President: Hiroshi Tomono) and Sumitomo Corporation (President & CEO: Susumu Kato) have won a contract from Nord Stream AG to supply large diameter welded (UOE) line pipes, coated on the inner and outer walls, for the Nord Stream Project, an offshore natural gas pipeline project that links Russia and the European Union via the Baltic Sea. The project is to lay two offshore pipelines (each being approximately 1,220 km in length) on the seabed of the Baltic Sea. Sumitomo's pipes will be used for its second line, the Line 2.

1. Background on the award:

(1) Technical requirements were very tough: pipes are required to be high strength with heavy wall thickness. In the previous tender for the Line 1

     (which took place in 2007 for approximately 1 million tons of pipes,) Japanese companies did not receive order. However, during the current

     tender for the Line 2, Sumitomo was awarded thanks to the following factors, in our view.
     - Sumitomo Metals' world-leading technical capabilities that have been accumulated from its long history in production of high quality pipes; and
     - Sumitomo's high credibility based on its supply record for various large pipeline projects worldwide.

(2) In addition, we believe that Sumitomo's comprehensive project management and control capabilities (including strict control for punctual delivery)

     were highly evaluated by Nord Stream AG. They ensure smooth execution of the awarded work, including coating arrangement and delivery to

     destinations in Germany and Finland.

2.Outline of the award:
(1) Products:
      High strength UOE line pipes, coating on the inner and outer walls (Grade SAWL 485 I FD, equivalent to X70)
     (Bare pipes are to be produced in Sumitomo Metals' Kashima Steel Works, while a process of coating is to be arranged by Sumitomo Corp.)

(2) Contract amount:
      Approx. 91 million euro

(3) Size:
      ID 1,153 mm x WT 30.9 mm, 110 km

(4) Shipment:
      September 2010 (start of on-site delivery of coated pipes)

(5) Buyer:
      Nord Stream AG.

        Nord Stream AG is an international joint venture company established for the planning, construction and subsequent operation of the Nord Stream

        Pipeline. Russian OAO Gazprom holds a 51 percent stake of the joint venture. German companies, BASF/Wintershall Holding AG and E.ON Ruhrgas

        AG, hold 20 percent each, and a Dutch gas infrastructure company, N.V. Nederlandse Gasunie, has a 9 percent stake.

(6) Contract flow:
     Nord Stream AG → Sumitomo Corp. → Sumitomo Metals

[Pipeline Map]

3.Prospect:
Many other large-scale natural gas development projects are expected to be realized worldwide in the future.
Sumitomo Metals and Sumitomo Corp. will continue to make efforts in securing orders for important pipeline projects, although we have almost full orders up to our capacity for the fiscal year 2010.