Nippon Steel, Sumitomo Metals and Kobe Steel Form Closer Ties

Nippon Steel Corporation , Sumitomo Metal Industries, Ltd., and Kobe Steel, Ltd. reached agreement at the end of October this year to consider ways of further expanding and enhancing their cooperative ties and additional cross-purchase of shares. The three companies have proceeded with consideration of these courses of action and now reached the following agreement regarding the additional cross-purchase of shares. The companies share the view that increased cross-shareholdings will be effective in promoting smooth and steady implementation of strategic cooperative measures, such as the mutual use and sharing of core production facilities, and will assist the companies in pursuing the mutual benefits of these arrangements based on relationships of trust.

1. Nippon Steel and Sumitomo Metals
   Nippon Steel and Sumitomo Metals will each purchase the other's shares in the amount of around 100 billion yen.
   -Nippon Steel will increase its ownership in all Sumitomo Metals shares from 5.01% (representing a voting right percentage of about 5.3%) at present to about 9.4% (representing a voting right percentage of about 9.9%).
   -Sumitomo Metals will increase its ownership in all Nippon Steel shares from 1.81% (representing a voting right percentage of about 2.0%) at present to about 4.1% (representing a voting right percentage of about 4.5%).
2. Nippon Steel and Kobe Steel
   Nippon Steel and Kobe Steel will each purchase the other's shares in the amount of approximately 15 billion yen.
   -Nippon Steel will increase its ownership in all Kobe Steel shares from 2.05% (representing a voting right percentage of about 2.2%) at present to about 3.4% (representing a voting right percentage of about 3.6%).
   -Kobe Steel will increase its ownership in all Nippon Steel shares from 0.41% (representing a voting right percentage of about 0.4%) at present to about 0.8% (representing a voting right percentage of about 0.8%).
3. Sumitomo Metals and Kobe Steel
   Sumitomo Metals and Kobe Steel will each purchase the other's shares in the amount of approximately 15 billion yen.
   -Sumitomo Metals will increase its ownership in all Kobe Steel shares from 2.05% (representing a voting right percentage of about 2.2%) at present to about 3.4% (representing a voting right percentage of about 3.6%).
   -Kobe Steel will increase its ownership in all Sumitomo Metals shares from 1.71% (representing a voting right percentage of about 1.8%) at present to about 2.4% (representing a voting right percentage of about 2.5%).