Arcelor Mittal Acquires Sicartsa, The Leading Mexican Long Steel Producer


· Acquisition of a 100% stake in Sicartsa, an integrated long steel mill in
Mexico and Border Steel, a mini-mill in Texas, from Grupo Villacero.

· Commercial 50/50 joint-venture with Grupo Villacero in Mexico and
Southern US

· Combination of Sicartsa with Mittal Steel Lázaro Cárdenas leads to the
creation of Mexico's largest steel producer with an annual capacity of 6.7
million tons

· First external growth initiative since the announcement of the merger

Rotterdam/Luxembourg, December 20, 2006 - Arcelor Mittal has announced today the
acquisition of Sicartsa, a Mexican integrated steel producer, from Grupo Villacero for an
enterprise value of $1,439 million. The two companies will also create together a downstream
strategic alliance.

Sicartsa is a fully integrated producer of long steel, with an annual production capacity of
approximately 2.7 million tonnes from its facilities in Mexico and Texas, USA. Through its
wholly owned mine, linked directly to the plant via a slurry pipeline, Sicartsa has estimated iron
ore reserves of 160 million tonnes, providing 30 years of reserves at current production rates.

Arcelor Mittal has also today entered into a 50/50 commercial joint-venture with Grupo Villacero
for the distribution and trading of Arcelor Mittal long products in Mexico and in the southwest of
the United States, capitalizing on Villacero's commercial network.

This is Arcelor Mittal's first acquisition since the creation of the company earlier this year and
demonstrates the M&A synergies the merger created as well as the company's desire to further
consolidate the steel industry. Arcelor Mittal expects this acquisition to generate $80 million of
industrial synergies in addition to a further $50 million from commercial, procurement and
selling, general & administrative synergies.

Sicartsa is sharing its production site with Mittal Steel Lázaro Cárdenas, offering significant
synergy potential, once reunited. Prior to the privatization in 1991 which led to its separation in
two entities, the Lázaro Cárdenas steelworks operated as one single integrated site producing
both flat and long carbon products. Mittal Steel Lázaro Cárdenas is Mexico's largest steel
producer and slab exporter. The plant has a capacity of 4 million tons per year.

The transaction values Sicartsa at $1,439 million. For 2004, Sicartsa's revenue was $956
million, with an EBITDA of $ 248 million. In addition to the integrated steel making facility at
Lázaro Cárdenas, the acquisition also includes Metaver, a mini-mill, Sibasa and Camsa, two
rolling mills in Celaya, Guanajuato (Sibasa) and Tultitlán, State of Mexico as well as Border
Steel, a mini-mill in Texas, USA. In 2005, Border Steel had net sales of USD 110.8 million and
an EBITDA of USD 12.5 million. In 2005 Sicartsa saw a drop in its performance compared to
2004 largely due to a strike of 46 days in 2005. The strike has also affected its operations for
another 4 months in 2006.

Aditya Mittal, CFO Arcelor Mittal said: "This acquisition creates a strong and well balanced long
carbon player in the Americas. With the Mexican market expected to grow by up to 6% per year
over the next ten years this is the ideal time to expand our presence in this country. Through
the implementation of rapid technological and best practice transfer, we see significant potential
for improving the profitability of Sicartsa. Combining these two facilities creates Mexico's largest
and one of its lowest cost steel producers and further accelerates our growth plans in this
exciting region."

The closing of this transaction is expected during Q1 2007, subject to regulatory and
competition approvals.

About Grupo Villacero

With total annual sales exceeding 2.5 billion USD (2004), Grupo Villacero is the largest distribution and marketing
company of steel products in Mexico., Thanks to the joint-venture with Arcelor-Mittal, the company will benefit from a
reliable supply of steel products for its downstream marketing and processing operations, a key component of the
company's strategy to consolidate its position as the marketing, processing and steel service leader in Mexico,
Southwestern U.S. and Central America.

About Arcelor Mittal

Arcelor Mittal is the world's number one steel company, with 330,000 employees in more than 60 countries. The
company brings together the world's number one and number two steel companies, Arcelor and Mittal Steel.

Arcelor Mittal is the leader in all major global markets, including automotive, construction, household appliances and
packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding
distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the
company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth
Chinese and Indian markets.

Arcelor Mittal key pro forma financials for the first nine months of 2006 show combined revenues of USD 65.4 billions,
with approximate production capacity of 130 million tonnes a year, representing around 10 per cent of world steel
output.

Arcelor Mittal is currently listed under the legal entity Mittal Steel NV on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona,
Bilbao, Madrid (MTS) and Valencia.

Contact information Arcelor Mittal Investor Relations
Continental Europe +352 4792 2414
UK/Asia/Africa +44 207 543 1172
Americas +1 312 899 3569
Retail +352 4792 2434
SRI +352 4792 2902

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