ACERINOX ANNOUNCES IN ITS GENERAL SHAREHOLDERS MEETING THAT ITS SUBSIDARY COMPANY, NORTH AMERICAN STAINLESS INCREASES ITS PRODUCTION CAPACITY BY 40%

Victoriano Muñoz Cava, ACERINOX Chairman, has announced in the General Shareholders Meeting, held today that its subsidiary company NORTH AMERICAN STAINLESS will invest 270 million USD in its Kentucky factory so as to increase its melting capacity from one million Mt forecasted for the end of 2006 to 1,415,000 Mt with a second A.O.D converter and to put into operation a fourth annealing and pickling line, a 5th ZM cold rolling mill and finishing equipments for long products. 80 new jobs will be created. These facilities are scheduled to come into stream at the end of 2008. Once the new facilities are working at full capacity in2010, production will be 78% higher than the output achieved in 2005.

Victoriano Muñoz Cava, ACERINOX Chairman, has announced in the General Shareholders Meeting, held today that its subsidiary company NORTH AMERICAN STAINLESS will invest 270 million USD in its Kentucky factory so as to increase its melting capacity from one million Mt forecasted for the end of 2006 to 1,415,000 Mt with a second A.O.D converter and to put into operation a fourth annealing and pickling line, a 5th ZM cold rolling mill and finishing equipments for long products. 80 new jobs will be created. These facilities are scheduled to come into stream at the end of 2008. Once the new facilities are working at full capacity in2010, production will be 78% higher than the output achieved in 2005.

This investment is to be added to the already announced investments of the 15th Phase of Campo de Gibraltar Factory, which amounts to 35 million euros. In addition, it is scheduled to enlarge ROLDAN factory in Ponferrada with a 20 million euros investment aimed to increase productivities of the factory, to update technology of facilities and to improve environmental conditions and safety.

New warehouses in Warsaw, Oporto and Seville are under construction with a global investment of 21 million euros.

Consequently, the approved Group investment, which will be carried out in the next two years, amounts to 300 million euros.

ACERINOX, S.A. General Shareholders Meeting has resolved to pay out a complementary dividend of 0.12 euros per share on account of year 2005, which will be effective on the 4th July, and an issue premium refund of 0.08 euros per share, which will be effective next month of October. Both are the same to those paid out in July and October 2005.