Ispat Acquiring ISG

Ispat International N.V. announced that it has agreed to acquire International Steel Group. Additionally, Ispat also announced it is acquiring LNM Holdings N.V., and is changing the name of the company to Mittal Steel Company N.V.

The merger of the companies will create one of the largest steel company in the world.

LNM Holdings is one of the world's largest and most profitable steel companies and also has substantial mining assets. Revenues were $9.9 billion and operating income was $3.2 billion in the first nine months of 2004. The company has annual total raw steel production capacity of over 32 million tons and owns significant mining assets, annually producing approximately 18 million metric tons of iron ore, 13 million metric tons of coke and 12 million metric tons of coal.

Under the terms of the agreement with ISG, ISG shareholders will receive $21.00 per share in cash and a number of Mittal Steel shares equal to $21.00 divided by the average closing price of Mittal Steel for the 20 trading days prior to closing, up to a maximum of 0.6087 shares and a minimum of 0.4793 shares.

The companies have signed a Letter of Agreement with the United Steelworkers of America and the Independent Steelworkers Union.

Upon completion of both transactions, Mittal Steel will have operations in 14 countries on four continents and 165,000 employees.

Lakshmi N. Mittal will be chairman and CEO of Mittal Steel. Wilbur L. Ross, chairman of ISG, will become a Board member of Mittal Steel. Aditya Mittal will be president, group chief financial officer and a Board member. Malay Mukherjee will be chief operating officer. Rodney Mott, president and chief executive officer of ISG, will become chief executive officer of Mittal Steel's combined U.S. operations.

spat International operates in 6 countries in North America and Western Europe, including the United States through Ispat Inland Inc. Ispat International has annual total raw steel production capacity of over 18 million tons and is targeting 2004 revenues of approximately $8.3 billion.

LNM Holdings operates in 8 countries in Europe, Africa and Asia. It has annual total raw steel production capacity of over 32 million tons and is targeting 2004 revenues of approximately $14.5 billion.

ISG is one of the largest integrated steel producers in North America and among the top ten globally. Since being formed in April 2002, it has grown rapidly by acquiring the steel making assets of LTV, Acme Steel, Bethlehem Steel, Weirton Steel and Georgetown. ISG has annual total raw steel production capacity of approximately 20 million tons and is targeting 2004 revenues of approximately $9 billion.