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Mittal Steel Company N.V. Reports Second Quarter and Half Year Results 2005 ROTTERDAM, The Netherlands, August 10 /PRNewswire-FirstCall/ -- Mittal Steel Company N.V., (NYSE: MT; AEX: MT),'Mittal Steel' or 'the Company'), the world's largest and most global steel company, today announced results for the second quarter and six months ended June 30, 2005. Highlights: - Solid results given current market conditions (US Dollars in millions except per share data and shipments) 2Q 2005 1Q 2005 2Q 2004 1H 2005 1H 2004 Shipments (000'ST) 12,181 10,379 10,843 22,560 20,949 Revenues 7,604 6,424 5,588 14,028 9,728 Operating income 1,391 1,719 1,690 3,110 2,489 Net income 1,090 1,147 1,276 2,237 1,815 Earning Per Share ($) 1.57 1.78 1.98 3.35 2.81 The results of the second quarter include those of International Steel Group ('ISG') which merged with Mittal Steel from April 15, 2005, and excludes the first 15 days of ISG second quarter results. - Further strengthening of global position The merger of International Steel Group ('ISG') with Mittal Steel was completed on April 15, 2005. This is Mittal Steel's first earnings release consolidating the results of ISG from the acquisition date of April 15, 2005. The acquisition of ISG was accounted for using the purchase method of accounting, as required under US GAAP. Commenting, Mr Lakshmi N. Mittal, Chairman and CEO, Mittal Steel Company, said: 'The industry has been experiencing an inventory de-stocking in Europe and the US, as a result of which demand and prices have softened. The industry response to this has been positive, with various producers cutting production including Mittal Steel. Against this backdrop, we have maintained net income at US$1.1 billion. Looking ahead to the third quarter, we are expecting conditions to remain difficult but key economic indicators are showing an encouraging signal for real steel demand prospects and prices are expected to improve in the short-term. We believe that the basic fundamentals for the steel industry remain positive and that Mittal Steel is well positioned to further build on its unique global position.' Second Quarter 2005 Earnings Conference Call Lakshmi N. Mittal, Chairman and Chief Executive Officer, and Aditya Mittal, President and Chief Financial Officer, will host a conference call for members of the investment community to discuss the company's financial results and general business operations at 9:30 AM New York Time/ 2:30 PM London time on Wednesday, August 10, 2005. The conference call will include a brief question and answer session with senior management. The conference call information is as follows: Date: Wednesday, August 10, 2005 Time: 9:30 AM New York Time/2:30 PM London Time Dial-In Number from within the U.S.: +1-877-780-2271 Dial-In Number from outside the U.S.:+1-973-582-2737 For individuals unable to participate in the conference call, a telephone replay will be available from 1:00 PM New York Time/6:00 PM London Time on August 10, 2005 until midnight/5:00 AM London Time on August 24, 2005 at: Replay Number from within the U.S.: +1-877-519-4471 Replay Number from outside the U.S.: +1-973-341-3080 Passcode: 6329996 A webcast of the conference call can also be accessed via www.mittalsteel.com and will be available for one week. RealPlayer or Windows Media Player will be required in order to access the webcast. Mittal Steel Company N.V. net income for the quarter ended June 30, 2005 was $1.1 billion or $1.57 per share, as compared with net income of $1.1 billion or $1.78 per share for the quarter ended March 31, 2005 and $1.3 billion or $1.98 per share for the quarter ended June 30, 2004. Consolidated sales and operating income for the quarter ended June 30, 2005 were $7.6 billion and $1.4 billion, respectively, as compared with $6.4 billion and $1.7 billion, respectively, for the quarter ended March 31, 2005 and compared with $5.6 billion and $1.7 billion, respectively, for the quarter ended June 30, 2004. Total steel shipments for the quarter ended June 30, 2005 were 12.2 million tons as compared with 10.4 million tons for the quarter ended March 31, 2005 and 10.8 million tons in the quarter ended June 30, 2004. Inter company transactions have been eliminated in financial consolidation. Analysis of operations Mittal Steel's consolidated financial statements for the quarter ended June 30, 2005 include ISG, the results of which were included from April 15, 2005. As a result, the comparison of past periods may not be entirely appropriate. Average price realization in the quarter ended June 30, 2005 marginally increased by 1% as compared with the quarter ended March 31, 2005 (4% lower excluding ISG). Average price realization in the quarter ended June 30, 2005 improved by 19% as compared with the quarter ended June 30, 2004, primarily due to higher base selling prices, following a steep increase in the cost of inputs (14% higher excluding ISG). Steel shipments were higher by 17% in the quarter ended June 30, 2005 as compared with the quarter ended March 31, 2005 (10% lower excluding ISG). Steel shipments for quarter ended June 30, 2005 were 12% higher as compared with the quarter ended June 30, 2004, primarily due to inclusion of ISG (14% lower excluding ISG). Due to the increases in the cost of key inputs, such as iron ore, electricity, natural gas, and the reduction of production due to the market environment, cost of goods sold per ton during the quarter ended June 30, 2005 was higher by 14% as compared with the quarter ended March 31, 2005 (4% higher excluding ISG) and higher by 40% as compared with the quarter ended June 30, 2004 (28% higher excluding ISG). The Company voluntarily cut production in some of its subsidiaries, to address an inventory de-stocking situation in the market place. Cost of sales during the quarter ended June 30, 2005 include the cash receipt of $75 million relating to an insurance claim, following the fire at Mittal Steel Temirtau (formerly known as Ispat Karmet) on February 17, 2005. Selling, general and administrative expenses in the quarter ended June 30, 2005 increased by 8% as compared with the quarter ended March 31, 2005 and increased by 52% as compared with the quarter ended June 30, 2004 largely due to higher levels of sales activity, as well as the inclusion of ISG. Operating income for the quarter ended June 30, 2005 was $1.4 billion as compared with $1.7 billion for both the quarter ended March 31, 2005 and quarter ended June 30, 2004, for reasons described above. Other income for the quarter ended June 30, 2005 was $35 million which includes $14 million in respect of a gain on a sale of a property at our Mexican operations, partly offset by $7 million minority interest, and $24 million relating to dividend from our 8.6% investment in Erdemir, which was made during December 2002 and March 2003 dates. Net interest expenses at Mittal Steel for the quarter ended June 30, 2005 increased to $55 million as compared with $33 million for the quarter ended March 31, 2005 and $47 million for the quarter ended June 30, 2004 primarily due to the increased borrowing for acquisition of ISG and assumption of debt at ISG. Mittal Steel's income tax expense for the quarter ended June 30, 2005 amounted to $165 million as compared with $397 million for the quarter ended March 31, 2005. The effective tax rate for the quarter ended June 30, 2005 was 12% as compared with 23% for the quarter ended March 31, 2005 primarily due to a tax credit in our Mexican operation, amounting to $136 million, as well as a one-time tax credit of $20 million in our US operations, due to a change in the Ohio tax regulations. Mittal Steel's income tax expense for quarter ended June 30, 2004 amounted to $257 million. Net income for the quarter ended June 30, 2005 remained flat as compared with the quarter ended March 31, 2005 at $1.1 billion and lower as compared with quarter ended June 30, 2004 at $1.3 billion owing to the reasons as discussed above. Americas Total steel shipments in the Americas region were 5.4 million tons in the quarter ended June 30, 2005, as compared with 3.0 million tons for the quarters ended March 31, 2005 and June 30, 2004. Excluding ISG, shipments were lower, primarily due to the de-stocking taking place. Sales were higher at $3.5 billion in the quarter ended June 30, 2005, as against $1.9 billion for the quarter ended March 31, 2005 and $1.6 billion for quarter ended June 30, 2004 due to the inclusion of ISG. Operating income was $447 million for the quarter ended June 30, 2005 as compared with $568 million for the quarter ended March 31, 2005 and compared with $370 million for quarter ended June 30, 2004. Excluding ISG, operating income was lower due to higher cost of inputs as well as reduced levels of activities due to the market environment. Europe The European region achieved total steel shipments of 4.0 million tons in the quarter ended June 30, 2005, as compared with 4.6 million tons for the quarter ended March 31, 2005 and 4.8 million tons for the quarter ended June 30, 2004. Shipments were lower primarily due to the aforementioned de-stocking taking place. Sales were lower at $2.6 billion in the quarter ended June 30, 2005, as compared with $3.0 billion for the quarter ended March 31, 2005, and $2.6 billon for the quarter ended June 30, 2004. Operating income was $263 million for the quarter ended June 30, 2005 as compared with $492 million for the quarter ended March 31, 2005, and compared with $668 million for the quarter ended June 30, 2004. Lower operating income was due to higher cost of inputs as well as reduced levels of production, caused by the market environment. Asia & Africa Total steel shipments of our Asia & Africa region (formerly known as Rest of World) were 2.7 million tons for the quarter ended June 30, 2005 as compared with 2.8 million tons for the quarter ended March 31, 2005, and 3.0 million tons for the quarter ended June 30, 2004. Shipments for the first and second quarters 2005 were affected primarily due to a fire at Kazakhstan subsidiary. Sales were marginally higher at $2.1 billion in the quarter ended June 30, 2005, as compared with $2.0 billion for the quarter ended March 31, 2005, and $1.8 billion for the quarter ended June 30, 2004 due to higher selling prices. Operating income was higher at $678 million for the quarter ended June 30, 2005 compared with $632 million for the quarter ended March 31, 2005, and higher as compared with $600 million for the quarter ended June 30, 2004. Liquidity The Company's liquidity remains strong. As at June 30, 2005, the Company's cash and cash equivalents including restricted cash were $2.7 billion ($2.7 billion at March 31, 2005 and $1.5 billion at June 30, 2004). In addition, the Company's operating subsidiaries had available borrowing capacity of $2.2 billion as at June 30, 2005.[1] Net debt (which is total debt including loan from shareholder and dividend payable less cash and cash equivalents and restricted cash) at the end of June 30, 2005 was $2.0 billion ($520 million at March 31, 2005). During the quarter, ISG purchase consideration of $2.1 billion was paid to ISG shareholders. In addition, $144 million was paid out for the cancellation of ISG stock options and net debt of $96 million at ISG was assumed. On a pro forma basis, including ISG stock options, the net debt decreased by $1,008 million in the quarter ended June 30, 2005. Inventories, receivables and prepaid expenses and other current assets were higher during the quarter, offset by increases in trade payables, accrued expenses and other liabilities net of effects of acquisitions, mainly due to reduced purchases, payment of options resulting from the merger and severance related costs at ISG. Capital expenditures during the quarter ended June 30, 2005 were $255 million as compared with $205 million for the quarter ended March 31, 2005 and $199 million for the quarter ended June 30, 2004. Depreciation during the quarter ended June 30, 2005 was $192 million as compared with $163 million for the quarter ended March 31, 2005 and $133 million for the quarter ended June 30, 2004. On June 20, 2005 the Board of Directors of Mittal Steel Company declared a dividend of US$0.10 per share, as per the dividend policy recently announced. The cash dividend was paid on July 7, 2005 to stockholders of record on June 30, 2005. Outlook for third quarter 2005. For the third quarter, production and shipments are expected to be slightly lower, selling prices are expected to be significantly lower and cost of sales slightly lower. Overall, we expect operating income to be lower by $50-$60 per ton as compared to second quarter. The tax rate should return to its normal level of around 25%. [1] Corresponding exercisable/available limits are lower, which are based on the level of inventory/receivable. Includes new unused portion of unsecured revolving credit facility. Statements in this press release that are not historical facts, including statements regarding expectations concerning market growth and development, expectations and targets for Mittal Steel's results of operations and expectations regarding cost savings from recently acquired companies and statements preceded by 'believe,' 'expect,' 'anticipate,' 'target' or similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those implied by such forward-looking statements on account of known and unknown risks and uncertainties, including, without limitation: (1) changes in general economic, political and social conditions; (2) adverse regulatory changes; (3) fluctuations in currency exchange rates; (4) cyclicality of the steel industry; (5) increased competition; (6) availability and cost of raw materials, energy and transportation; (7) Mittal Steel's ability to realize expected cost savings from recently acquired companies within the expected time frame; (8) Mittal Steel's ability to integrate recently acquired companies; (9) labor disputes; and (10) the risks contained in Mittal Steel's Form 20-F and other filings with the Securities and Exchange Commission. Mittal Steel undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. This press release also contains pro forma data (adjusted to give effect to the merger of Mittal Steel and ISG) for informational purposes only and does not purport to represent what Mittal Steel's results of operations or financial condition would have actually been had the merger with ISG been completed at the beginning of the period or to project Mittal Steel's results of operations or financial position for any future period. This press release also contains pro forma data (adjusted to give effect to the merger of Mittal Steel and ISG) for informational purposes only and does not purport to represent what Mittal Steel's results of operations or financial condition would have actually been had the merger with ISG been completed at the beginning of the period or to project Mittal Steel's results of operations or financial position for any future period. For further information, visit our web site: www.mittalsteel.com MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION MITTAL STEEL COMPANY N.V. CONSOLIDATED BALANCE SHEETS As of June 30, March 31, December 31, In millions of U.S. 2005 2005 2004 Dollars (Unaudited) (Unaudited) (Audited) ASSETS Current Assets Cash and cash $ 2,049 $ 2,171 $ 2,495 equivalents Restricted cash 681 560 138 Short-term 8 1 1 investments Trade accounts 2,434 2,085 2,006 receivable - net Inventories 5,979 4,209 4,013 Prepaid expenses and 950 738 666 other current assets Deferred tax assets 222 246 306 Total Current Assets 12,323 10,010 9,625 Property, plant and 10,904 7,277 7,562 equipment - net Investments in 710 682 667 affiliates and joint ventures Deferred tax assets 730 789 855 Intangible pension 102 104 106 assets Other assets 507 311 338 Total Assets $25,276 $19,173 $19,153 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Payable to banks and $ 511 $ 369 $ 341 current portion of long-term debt Trade accounts 1,991 1,743 1,899 payable Dividend payable 70 1,375 1,650 Accrued expenses and 3,037 2,250 2,307 other current liabilities Deferred tax 168 32 33 liabilities Total Current 5,777 5,769 6,230 Liabilities Long-term debt 4,213 1,508 1,639 Deferred tax 909 928 955 liabilities Deferred employee 2,039 1,936 1,931 benefits Other long-term 1,392 728 809 obligations Total Liabilities 14,330 10,869 11,564 Minority Interest 1,756 1,719 1,743 Shareholders' Equity Common shares 60 59 59 Treasury stock (113) (117) (123) Additional paid-in 2,481 548 552 capital Retained earnings 6,904 5,886 4,739 Accumulated (142) 209 619 comprehensive income Total Shareholders' 9,190 6,585 5,846 Equity Total Liabilities and $25,276 $19,173 $19,153 Shareholders' Equity MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION Quarter Ended Six Months Ended In millions of June 30, March 31, June 30, June 30, June 30, U.S. Dollars, 2005 2005 2004 2005 2004 except shares,(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) per share and other data STATEMENT OF INCOME DATA Sales $7,604 $6,424 $5,588 $14,028 $9,728 Costs and expenses: Cost of sales 5,748 4,289 3,585 10,037 6,650 (exclusive of depreciation shown separately) Depreciation 192 163 133 355 261 Selling, 273 253 180 526 328 general and administrative expenses 6,213 4,705 3,898 10,918 7,239 Operating 1,391 1,719 1,690 3,110 2,489 income Operating 18% 27% 30% 22% 26% margin Other income 35 5 (9) 40 18 (expense) - net Income from 32 15 30 47 41 equity method investments Financing costs: Interest (88) (58) (63) (146) (118) (expense) Interest 33 25 16 58 23 income Net gain from 4 13 11 17 - foreign exchange (51) (20) (36) (71) (95) Income before 1,407 1,719 1,675 3,126 2,453 taxes and minority interest Income tax expense: Current 161 290 197 451 245 Deferred 4 107 60 111 173 165 397 257 562 418 Income before 1,242 1,322 1,418 2,564 2,035 minority interest Minority (152) (175) (142) (327) (220) interest Net income $1,090 $1,147 $1,276 $2,237 $1,815 Basic and $1.57 $1.78 $1.98 $3.35 $2.81 diluted earnings per common share Weighted 695 643 643 669 645 average common shares outstanding (in millions) OTHER DATA Total 12,181 10,379 10,843 22,560 20,949 shipments of steel products including inter-company shipments (thousands of tons) MITTAL STEEL COMPANY N.V. CONSOLIDATED STATEMENTS OF CASH FLOWS Quarter Ended Six Months Ended, In millions June 30, March 31, June 30, June 30, June 30, of U.S. 2005 2005 2004 2005 2004 Dollars (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating activities: Net income $1,090 $1,147 $1,276 $2,237 $1,815 Adjustments required to reconcile net income to net cash provided by operations: Depreciation 192 163 133 355 261 Net accretion (42) - - (42) - of purchased intangibles Deferred (150) 4 (9) (146) (15) employee benefit costs Net foreign (7) (5) (103) (12) (100) exchange loss (gain) Deferred (17) 107 58 90 171 income tax Undistributed (14) (10) (39) (24) (75) earning from Joint Ventures Loss (gain) (15) - - (15) - on sale or write-off of property plant & equipment Minority 152 175 142 327 220 interest Other (22) 12 103 (10) 97 Changes in operating assets and liabilities, net of effects from acquisitions: Trade 448 (174) (287) 274 (600) accounts receivable Short-term (8) - (1) (8) (1) investments Inventories 210 (315) (386) (105) (437) Prepaid (141) (87) (117) (228) (197) expenses and other assets Trade (542) (79) 39 (621) 59 accounts payable Accrued (151) 27 211 (124) 259 expenses and other liabilities Net cash 983 965 1,020 1,948 1,457 provided by operating activities Investing activities: Purchase of (255) (205) (199) (460) (299) property, plant and equipment Proceeds from 37 (8) 2 29 21 sale of assets and investments including affiliates and joint ventures Acquisition (1,306) - (73) (1,306) (15) of net assets of subsidiaries, net of cash acquired Investment in 22 - 8 22 16 affiliates and joint ventures Restricted (97) (445) 185 (542) 8 cash Other (1) 5 (1) 5 Net cash used (1,600) (658) (72) (2,258) (264) in investing activities Financing activities: Proceeds from 824 520 656 1,344 1,585 payable to banks Proceeds from 3,080 19 42 3,099 952 long-term debt Debt issuance (10) - - (10) - cost Proceeds from - - - - 46 long-term debt from an affiliate Payments of (707) (508) (736) (1,215) (1,786) payable to banks Payments of (1,208) (116) (293) (1,324) (1,064) long-term debt Payment of - - (3) - (3) long-term debt to an affiliate Purchase of - - (24) - (54) treasury stock Sale of 4 2 2 6 2 treasury stock Dividends (1,375) (426) (150) (1,801) (261) paid Others (18) - 1 (18) 1 Net cash 590 (509) (505) 81 (582) provided by (used in) financing activities Net increase (27) (202) 443 (229) 611 (decrease) in cash and cash equivalents Effect of (95) (122) 18 (217) 28 exchange rate changes on cash Cash and cash equivalent: At the 2,171 2,495 938 2,495 760 beginning of the period At the end of $2,049 $2,171 $1,399 $2,049 $1,399 the period

Mittal Steel Company N.V. Announces Second Quarter 2005 Earnings Conference Call ROTTERDAM, The Netherlands, July 29 /PRNewswire-FirstCall/ -- Mittal Steel Company N.V. (NYSE and Euronext Amsterdam: MT), the world's most global steel producer, announced today that it will release financial results for the second quarter 2005 on Wednesday, August 10, 2005. Lakshmi Mittal, Chairman and Chief Executive Officer, and Aditya Mittal, President and Chief Financial Officer, will host a conference call for members of the investment community to discuss the company's financial results and general business operations at 9:30 AM New York Time / 2:30 PM London time on Wednesday, August 10, 2005. The conference call will include a brief question and answer session with senior management. The conference call information is as follows: Date: Wednesday, August 10, 2005 Time: 9:30 AM New York Time / 2:30 PM London Time Dial-In Number from within the U.S.: +1-877-780-2271 Dial-In Number from outside the U.S.:+1-973-582-2737 For individuals unable to participate in the conference call, a telephone replay will be available from 1:00 PM New York Time / 6:00 PM London Time on August 10, 2005 until midnight / 5:00 AM London Time on August 24, 2005 at: Replay Number from within the U.S.: +1-877-519-4471 Replay Number from outside the U.S.: +1-973-341-3080 Passcode: 6329996 A webcast of the conference call can also be accessed via ww.mittalsteel.com and will be available for one week. RealPlayer or Windows Media Player will be required in order to access the webcast. About Mittal Steel Mittal Steel Company is the world's largest and most global steel company. The company has operations in fourteen countries, on four continents. Mittal Steel encompasses all aspects of modern steelmaking, to produce a comprehensive portfolio of both flat and long steel products to meet a wide range of customer needs. It serves all the major steel consuming sectors, including automotive, appliance, machinery and construction. For 2004, Mittal Steel had revenues of US$22.2 billion and steel shipments of 42.1 million tons. The company trades on the New York Stock Exchange and the Euronext Amsterdam under the ticker symbol 'MT'. SOURCE Mittal Steel Company NV