Signing the 'Global Strategic Alliance' Between Nippon Steel and USINOR

    PARIS and TOKYO, Jan. 23 USINOR (President: Francis Mer,
[USINOR]) and Nippon Steel Corporation (President: Akira Chihaya, [NSC])
signed on January 22, 2001, the "Global Strategic Alliance" agreement to
develop cooperation in the steel business.  Both companies, in the development
of business activities mainly in Asia and in Europe, are facing the same and
formidable challenge: respond to a trend toward globalization among steel
users, such as automotive manufacturers, packaging industry and stainless
steel customers.

    Thus, NSC and USINOR have concluded this agreement in order to structure a
mutual cooperation in various activities.  The objective is to achieve greater
customer satisfaction and more efficient utilization of their respective
corporate resources in steel sector and high performing R&D.  To reach these
targets, the two companies will jointly work on cooperation projects in areas
such as automotive sheet.  They will enter into license arrangements
concerning technologies already possessed and joint R&D endeavors.  Moreover,
they will study opportunities such as joint venture and OEM production.  They
intend to develop similar cooperation with respect to steel for packaging and
stainless steel.  They will also implement cooperation for purchasing and
e-business, and pay special joint attention to environmental issues related to
their industry.

    The two companies have established a steering committee composed of
respectively designated senior executives for studies and development of
specific themes for cooperation.

    Both companies must respond to their customers' moves toward globalization
and world basis production of goods.  These customers also demand lighter,
stronger and better materials for environmental and safety considerations.  To
meet their legitimate requirements, the two companies will reinforce
connection with them, to better anticipate their needs and remain true
solution providers.

    To this end, the two companies have signed specific agreement in the area
of steel products for automotive use.  Accordingly, they will now be able to
cross-license each other existing products and to manufacture any
jointly-developed new products.  In this way, a better supply capability of
high-grade products will be available.  Both companies will capitalize on each
other technical advantages through cooperation, complementing and sharing.
Thus they will be able to respond to customers' demands for new product
development even faster and better than ever.  Attention will be paid to the
area of world-car design and supply where many tasks remain to be undertaken
regarding the level of globalization these customers have already achieved.

    This technical collaboration will tap each long accumulated know-how in
varied and numerous areas, such as technical services, product transportation,
delivery services and inventory control.  It is the belief of the
two companies that combined with cutting-edge information technology, it will
enable them to make significant contributions to customers and manufacturers
in many ways.

    "We are very confident that our two companies agreement, aimed at
establishing the best conditions to supply high-grade flat steel products,
strengthening new-product development capabilities, and improving the ability
of our two companies to make various improvement proposals will result into
superior benefits to our customers" affirm both NSC and USINOR presidents.