Luxembourg -- (MARKET WIRE) -- 06/30/2006 -- The extraordinary shareholders meeting of Arcelor, which met on 30 June 2006 under the Chairmanship of Mr. Joseph Kinsch, has resolved to reject the proposed SeverStal merger.

The Board of Directors is pleased that shareholders representing a large majority of the share capital were present or represented at the meeting. Approximately, 58% of the outstanding share capital of Arcelor, or 96% of the shares present or represented at the meeting, voted against the proposed SeverStal merger.

Based on this result, Mr. Kinsch stated that the strategic alliance agreement with Mr. Mordashov will be terminated in accordance with the terms of such agreement.

The second resolution, relating to the convocation of a further shareholders' meeting to approve the proposed SeverStal merger, had been added to the agenda of the shareholders meeting at the request of persons who represented that they were shareholders and that they collectively held more than 30% of Arcelor's share capital.

As signatories of the letter did not represent 30% of Arcelor's outstanding share capital, as claimed, but less than 20% of the share capital, which is the minimum threshold provided by the Luxembourg law, the proposed resolution was withdrawn from the agenda.

About Arcelor

Arcelor is the number one steel company in the world with a turnover of 32.6 billion euros in 2005. The company holds leadership positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company - number one steel producer in Europe and Latin America - ambitions to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its global customers. In 2006, Arcelor employs 110,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labour relations and social responsibility.

For more information visit www.arcelor.com

Investor Relations

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Arcelor S.A. - Registered office: 19, avenue de la Liberté L-2930 Luxembourg

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