Vallourec & Mannesmann Tubes

The news circulated on the evening of November 26, 2002, that the Bolloré Group was to acquire 12.1 % of the shares in the French quoted company Vallourec SA, in which the Salzgitter Group holds about 20 % of the stock and just under one third of the voting rights, has caused some sparked both irritation and speculation.

In the interests of clarification, Salzgitter AG would emphasize that it and its subsidiary Mannesmannröhren-Werke AG directly and indirectly hold and will continue to hold economically a majority stake in Vallourec & Mannesmann Tubes S.A. (V & M), the world market leader in the field of seamless tubes. In 2001, V & M achieved sales of € 1.9 billion which were reported in full by Vallourec S. A. (total sales in 2001: € 2.5 billion). V & M is thus the principal contributor of sales and profits to Vallourec S.A.

The set of agreements regarding V & M dating from 1997 effectively prevent any other shareholder from acquiring an economically meaningful majority stake in Vallourec S. A. which would result in any detrimental change in the potential influence exercised over V & M by Salzgitter AG and MRW.

Salzgitter AG therefore takes an interested, albeit relaxed, view of any changes in the structure of shareholdings in Vallourec S. A..