ACERINOX INCREASES ITS SHAREHOLDING IN COLUMBUS UP TO 76%

Acerinox, S.A. has acquired the 12% shareholding of Highveld Steel & Vanadium Corp. Ltd. in the South African company Columbus Stainless. After said transaction, Acerinox, S.A. shareholding in Columbus Stainless rises to 76%.

Acerinox, S.A. has acquired the 12% shareholding of Highveld Steel & Vanadium Corp. Ltd. in the South African company Columbus Stainless. After said transaction, Acerinox, S.A. shareholding in Columbus Stainless rises to 76%.

The transaction price, 47.5 millions €, match up approximately with the shareholding book value and consequently there is no goodwill.

After Columbus melt-shop revamping, carried out last month of April, its annual capacity has risen to one million tons, which means twice the production achieved in 2001, the year before to Acerinox entry in Columbus. In the first quarter 2005 Columbus Stainless results after taxes amounts to 13.5 million €.

ACERINOX, S.A. has also purchased the remaining 3,866,666 Acerinox shares, owned by Highveld Steel & Vanadium Corp. Ltd. (1.47% Capital Stock) at an average price of 11.35 €.

Industrial Development Corporation (IDC), Southafrican state owned corporation, remains as stable partner of Acerinox, owning a 12% in Columbus, and a 2.938% in Acerinox, S.A. Samancor Ltd. (BHP Billiton Angloamerican) holds its stake of 12% in Columbus Stainless and 1.47% in Acerinox, S.A.