Suspension of Electromagnetic Steel Sheet Processing Facilities in Thailand due to the Flood

Sumitomo Metal Industries, Ltd (Sumitomo Metals) announces today that its consolidated subsidiary, Thai Sumilox Company, Ltd. (Thai Sumilox) has suspended its operation due to the flood in Thailand. Thai Sumilox processes and sells electromagnetic steel sheets used for electric motors. Other three subsidiaries of Sumitomo Metals in Thailand are not affected.

Thai Sumilox is located in Rojana Industrial Park in Ayutthaya Province. Its operation is currently being suspended because the governor of Ayutthaya issued the evacuation instruction due to the flood. No injury or casualty was reported. We are investigating the damage of the flood and how and when we can recover the damage.

<Profile of Thai Sumilox Company, Ltd.>

We are watching the situation closely and estimating the impact of the flood to our results. We believe it is unlikely the impact to our results will be material. We will announce any important findings to our results.