ArcelorMittal Reports Record Results for the Second Quarter and First Half 2007

Regulatory News: Mittal Steel Company N.V. (referred to as "ArcelorMittal”, "Mittal Steel” or "the Company”) (New York: MT; Amsterdam: MT; Madrid: MTS; Paris: MTP; Brussels: MTBL; Luxembourg: MT), the world’s largest and most global steel company, today announced results for the three and six month periods ended June 30, 2007. H107 highlights: Record quarterly and half-year results EBITDA of $9.7 billion – 42% increase over pro forma H106 Net income of $5.0 billion – 45% increase over pro forma H106 Operating income of $7.7 billion – 50% increase over pro forma H106 $973m of synergies captured by end of 1H07 Financial highlights (on the basis of IFRS, amounts in US$ and Euros1): (US dollars in millions except earnings per share and shipments data) Results US Dollars   Q2 2007 Actual   Q1 2007 Actual   Q2 2006 Pro forma   H1 2007 Actual   H1 2006 Pro forma Shipments (Million MT)2   28.7   27.0   29.1   55.7   56.9 Sales   27,223   24,476   22,430   51,699   43,304 EBITDA3   5,326   4,346   3,500   9,672   6,800 Operating income   4,232   3,455   2,633   7,687   5,137 Net income   2,723   2,250   1,817   4,973   3,420 Basic earnings per share   $1.97   $1.62   $1.31   $3.60   $2.47 (Euros in millions except earnings per share and shipments data) Results Euros1   Q2 2007 Actual   Q1 2007 Actual   Q2 2006 Pro forma   H1 2007 Actual   H1 2006 Pro forma Shipments (Million MT)2   28.7   27.0   29.1   55.7   56.9 Sales   20,194   18,675   17,827   38,898   35,218 EBITDA3   3,951   3,316   2,782   7,277   5,530 Operating income   3,139   2,636   2,093   5,784   4,178 Net income   2,020   1,717   1,444   3,742   2,781 Basic earnings per share   €1.46   €1.24   €1.04   €2.71   €2.01   1 US dollars have been translated into Euros using an average exchange rate (US$/Euro) of 1.3481, 1.3106, 1.2582, 1.3291 and 1.2296 for Q2 2007, Q1 2007, Q2 2006, 1H 2007 and 1H 2006, respectively.     2 Some inter-company shipments are not eliminated.   3 EBITDA is defined as operating income plus depreciation. Inter-company transactions have been eliminated in consolidation. The financial information in this press release and Appendix 1 has been prepared in accordance with International Financial Reporting Standards as endorsed by the European Union ("IFRS”). While the financial information included in this announcement has been prepared in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Auditing Standards 34, "Interim Financial Reporting”. Unless otherwise noted the numbers in this press release have not been audited. Commenting, Lakshmi N. Mittal, President and CEO, ArcelorMittal, said: "We are pleased to be able to report a record set of numbers for the second quarter and first half 2007. These results were driven by a strong demand for steel combined with higher selling prices in all our major segments. The company reported EBITDA of US$9.7 billion in the first half of 2007, as compared with US$6.8 billion for the first half of 2006, representing an increase of 42%. We are anticipating a robust end to the year supported by the strength of our unique global and diversified business model. "We are also continuing to make good progress with our three-dimensional growth strategy. Most recently we have been awarded the mining license for an attractive iron-ore deposit in Senegal and have strengthened our presence in the automotive sector through the acquisition of two French pipes and tubes businesses. One year on from the merger, the Company has made excellent progress in effecting a successful integration and is well positioned for the future.” SECOND QUARTER 2007 NEWS CONFERENCE (FOR MEDIA)   ArcelorMittal management will host a news conference:     Date: Wednesday, August 1st 2007 Time: 6.00am New York Time / 11.00am London Time / 12.00pm Central European Time   The dial in number: International number: +44 207 0705 579 UK: 0207 0705 579 USA: +1 866 432 7186   Replay Numbers: International number: +44 208 196 1998 UK: 0208 196 1998 USA: +1 866 583 1035   Access Code for each language on the replay: English 069434# Spanish 181439# French 414790# The news conference will be available via a live video webcast on www.arcelormittal.com. SECOND QUARTER 2007 EARNINGS ANALYST CONFERENCE CALL Additionally, ArcelorMittal management will host a conference call for members of the investment community to discuss the second quarter 2007 financial performance of ArcelorMittal at 9.30am New York time / 2.30pm London time / 3.30pm Central European Time on Wednesday, August 1st 2007. The conference call will include a brief question and answer session with senior management. The conference call information is as follows: Dial in access numbers will be the following:   International: +44 208 611 0043 UK: 0208 611 0043 USA: +1 866 432 7175   A replay of the conference call will be available for one week by dialing (access code 634819#):   International: +44 208 196 1998 UK: 0208 196 1998 USA: +1 866 583 1035 The presentation will be available via a live video webcast on www.arcelormittal.com Important information This document constitutes neither an offer to acquire Arcelor Brasil S.A. securities nor an offer of securities in any jurisdiction. In particular, this document does not constitutes an offer of securities for distribution nor sales in the United States. Securities may not be offered, sold or distributed in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933. ArcelorMittal does not interest to register securities or conduct a public offering the United States. Forward-Looking Statements This document may contain forward-looking information and statements about Mittal Steel Company N.V. and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words "believe,” "expect,” "anticipate,” "target” or similar expressions. Although Mittal Steel’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Mittal Steel’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of Mittal Steel, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Netherlands Authority for the Financial Markets and the United States Securities and Exchange Commission ("SEC”) made or to be made by Mittal Steel or its successor entities (including ArcelorMittal) including Mittal Steel’s Annual Report on Form 20-F filed with the SEC. Mittal Steel undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. Additional Information In connection with the proposed merger of Mittal Steel Company N.V. ("Mittal Steel") with ArcelorMittal (a wholly owned subsidiary of Mittal Steel), and the subsequent merger of ArcelorMittal with Arcelor, Mittal Steel, ArcelorMittal and Arcelor have filed and will file important documents with the relevant securities regulatory authorities, including the filing with the U.S. SEC by ArcelorMittal of a registration statement that included a proxy statement/prospectus and the anticipated filing with the SEC by Arcelor of a registration statement that will include a proxy statement/prospectus. The proxy statement/prospectus filed by ArcelorMittal does and the proxy statement/prospectus to be filed by Arcelor will contain important information about the relevant merger and related matters, and Mittal Steel, ArcelorMittal and Arcelor have made or will make public such proxy statement/prospectus and mail the proxy statement/prospectus to the relevant U.S. shareholders. Investors and security holders are urged to read each proxy statement/prospectus, and any other relevant documents filed with the relevant securities regulatory authorities, when they become available and before making any investment decision. You can obtain a free copy of the proxy statement/prospectus filed by ArcelorMittal and will be able to obtain a free copy of the proxy statement/prospectus filed by Arcelor (when available) and other related documents filed with the SEC by Mittal Steel, ArcelorMittal and Arcelor at the SEC’s web site at www.sec.gov and from Mittal Steel, ArcelorMittal and Arcelor at www.arcelormittal.com. ARCELORMITTAL SECOND QUARTER AND FIRST HALF 2007 RESULTS – PRO FORMA COMPARISON ArcelorMittal, the world’s largest and most global steel company, today announced results for the three and six month periods ended June 30, 2007. Pro forma presentation The pro forma results for 2006 include the results of the following acquisitions as if such acquisitions took place on January 1, 2006: the acquisition of Arcelor on August 1, 2006; and the acquisition of certain subsidiaries of Stelco on January 30, 2006. Furthermore, the results of Arcelor include the following acquisitions as if such acquisitions took place on January 1, 2006: the acquisition of Sonasid on June 1, 2006; and the acquisition of Dofasco on March 1, 2006. The results of Sicartsa are included from April 20, 2007, the date of its acquisition by the Company. Disposals The pro forma results for 2006 include the results of the following subsidiaries until the date of their disposal: the disposal of Huta Bankowa Spólka z.o.o. ("Huta Bankowa”) in January 2007 the disposal of Travi e Profilati di Pallanzeno ("TPP”) in January 2007 the disposal of Stahlwerk Thüringen GmbH ("SWT”) in March 2007 Results for the three months ended June 30, 2007 versus the three months ended March 31, 2007 and pro forma results for the three months ended June 30, 2006 ArcelorMittal’s net income for the three months ended June 30, 2007, was $2.7 billion, or $1.97 per share, as compared with $2.3 billion, or $1.62 per share, for the three months ended March 31, 2007, and pro forma net income of $1.8 billion, or $1.31 per share, for the three months ended June 30, 2006. Net income in the second quarter 2007 is higher than the first quarter 2007 primarily due to strong demand for our products, resulting in higher shipments and higher selling prices, offset in part by higher costs. Sales and operating income for the three months ended June 30, 2007, were $27.2 billion and $4.2 billion, respectively, as compared with $24.5 billion and $3.5 billion, respectively, for the three months ended March 31, 2007. Pro forma sales and operating income for the three months ended June 30, 2006, were $22.4 billion and $2.6 billion, respectively. Total steel shipments for the three months ended June 30, 2007, were 28.7 million metric tonnes as compared with 27.0 million metric tonnes for the three months ended March 31, 2007, and pro forma steel shipments of 29.1 million metric tonnes for the three months ended June 30, 2006. Total steel shipments are lower in the three months ended June 30, 2007, as compared to the three months ended June 30, 2006, primarily due to the non consolidation of a Canadian joint venture in 2007, where a 50% proportion was include in 2006. Shipments in Flat Carbon Americas were lower, offset by an increase in shipments in Flat Carbon Europe. Analysis of operations. Sales for the three months ended June 30, 2007, were $27.2 billion as compared with $24.5 billion for the three months ended March 31, 2007, and pro forma sales of $22.4 billion for the three months ended June 30, 2006. Depreciation for the three months ended June 30, 2007, increased to $1.1 billion as compared with $891 million for the three months ended March 31, 2007, and pro forma depreciation of $867 million for the three months ended June 30, 2006. Depreciation was higher in the second quarter due to an increase of plant, property and equipment, amortisation of intangibles recognised in purchase price allocations and alignment of definitions. Operating income for the three months ended June 30, 2007, increased to $4.2 billion as compared with $3.5 billion for the three months ended March 31, 2007, and pro forma operating income of $2.6 billion for the three months ended June 30, 2006. Income from investments for the three months ended June 30, 2007, was $195 million as compared with $154 million for the three months ended March 31, 2007, and pro forma income from investments of $119 million for the three months ended June 30, 2006. Net financing costs for the three months ended June 30, 2007, were $182 million as compared with $10 million for the three months ended March 31, 2007 and pro forma expense of $299 million for the three months ended June 30, 2006. Included in the net financing cost is net interest expense which increased by $33 million to $296 million for the three months ended June 30, 2007, as compared to $263 million for the three months ended March 31, 2007. Net financing costs for the three months ended June 30, 2007 include other gains such as Canadian Dollar swap, foreign exchange and certain financial instruments. Income tax expense for the three months ended June 30, 2007, increased to $1.1 billion as compared with $934 million for the three months ended March 31, 2007. The effective tax rate for the three months ended June 30, 2007, was 25.2% as compared with 25.8% for the three months ended March 31, 2007. The pro forma income tax expense for the three months ended June 30, 2006 was $310 million, representing an effective tax rate of 12.7%. Minority interest for the three months ended June 30, 2007, was $497 million (of which Arcelor Brasil is $152 million), as compared with $436 million (of which Arcelor Brasil is $141 million) for the three months ended March 31, 2007, and pro forma minority interest of $320 million for the three months ended June 30, 2006. Net income for the three months ended June 30, 2007, increased to $2.7 billion as compared with $2.3 billion for the three months ended March 31, 2007, and pro forma net income of $1.8 billion for the three months ended June 30, 2006. Analysis of operations Q2 2007 v Q1 2007 Flat Carbon Americas Total steel shipments in the Flat Carbon Americas segment were higher at 7.1 million metric tonnes for the three months ended June 30, 2007, as compared with steel shipments of 6.6 million metric tonnes for the three months ended March 31, 2007. Sales were higher at $5.9 billion for the three months ended June 30, 2007, as compared with sales of $5.1 billion for the three months ended March 31, 2007. Operating income was substantially higher at $846 million for the three months ended June 30, 2007, as compared with operating income of $584 million for the three months ended March 31, 2007. Operating results for the three months ended June 30, 2007, as compared with the three months ended March 31, 2007, were favorably impacted by higher shipments in the US and Mexican operations and were positively impacted by higher average steel selling prices particularly in Mexico and South America. Flat Carbon Europe Total steel shipments in the Flat Carbon Europe segment were higher at 9.2 million metric tonnes for the three months ended June 30, 2007, as compared with steel shipments of 8.7 million metric tonnes for the three months ended March 31, 2007. Sales were higher at $8.9 billion for the three months ended June 30, 2007, as compared with sales of $8.2 billion for the three months ended March 31, 2007. Operating income was higher at $1.2 billion for the three months ended June 30, 2007, as compared with $1.1 billion for the three months ended March 31, 2007. Operating results for the three months ended June 30, 2007, as compared to the three months ended March 31, 2007, increased due to improved volumes and average steel selling prices, which were partially offset by higher input costs. Long Carbon Americas and Europe Total steel shipments in the Long Carbon Americas and Europe segment were higher at 6.5 million metric tonnes for the three months ended June 30, 2007, as compared with steel shipments of 6.2 million metric tonnes for the three months ended March 31, 2007. Sales were higher at $6.2 billion for the three months ended June 30, 2007, as compared with sales of $5.5 billion for the three months ended March 31, 2007. Operating income was higher at $1.1 billion for the three months ended June 30, 2007, as compared with operating income of $947 million for the three months ended March 31, 2007. Operating results for the three months ended June 30, 2007, as compared with the three months ended March 31, 2007, increased primarily due to improved average steel selling prices, particularly in Europe and the Brazilian markets, which were partially offset by higher input costs. Asia Africa and CIS ("AACIS”) Total steel shipments in the AACIS segment were higher at 5.4 million metric tonnes for the three months ended June 30, 2007, as compared with steel shipments of 5.1 million metric tonnes for the three months ended March 31, 2007. Sales were higher at $4.7 billion for the three months ended June 30, 2007, as compared with sales of $4.0 billion for the three months ended March 31, 2007. Operating income was substantially higher at $1.0 billion for the three months ended June 30, 2007, as compared with operating income of $744 million for the three months ended March 31, 2007. Operating results for three months ended June 30, 2007, as compared to the three months ended March 31, 2007, increased mainly due to higher volumes and average steel selling prices, particularly in the CIS operations, which were partially offset by higher input costs. Stainless Steel Total steel shipments in the Stainless Steel segment were higher at 544 thousand metric tonnes for the three months ended June 30, 2007, as compared with steel shipments of 498 thousand metric tonnes for the three months ended March 31, 2007. Sales were higher at $2.7 billion for the three months ended June 30, 2007, as compared with sales of $2.3 billion for the three months ended March 31, 2007. Operating income was substantially lower at $237 million for the three months ended June 30, 2007, as compared with operating income of $373 million for the three months ended March 31, 2007. Operating results for the Stainless Steel segment declined for the three months ended June 30, 2007, as compared to the three months ended March 31, 2007, primarily due to a write-down in the value of inventory, as a result of the recent decline in nickel prices, partially offset by improved volumes. AM3S1 Total steel shipments in the AM3S segment were higher by 0.3 million tonnes, in the three months ended June 30, 2007, as compared with the three months ended March 31, 2007. Sales in the AM3S segment were higher at $3.8 billion for the three months ended June 30, 2007, as compared with sales of $3.4 billion for the three months ended March 31, 2007. Operating income increased to $184 million for the three months ended June 30, 2007, as compared with operating income of $121 million for three months ended March 31, 2007, primarily due to higher volumes and higher average steel selling prices. Liquidity and Capital Resources ArcelorMittal's principal sources of liquidity are cash generated from its operations, its credit lines at the corporate level and various working capital credit lines at its operating subsidiaries. As of June 30, 2007, the Company’s cash and cash equivalents, including restricted cash and short-term investments, amounted to $6.8 billion as compared to $8.3 billion at March 31, 2007. Net debt for the second quarter, which includes long-term debt plus short-term debt less cash and cash equivalents, restricted cash and short-term investments, increased by $4.5 billion to $23.2 billion. Gearing2 has increased from 35% to 42% and net debt to EBITDA ratio has increased from 1.1x3 at March 31, 2007, to 1.2x at June 30, 2007. The increase in net debt was primarily due to the following: Acquisition of Sicartsa, Mexico: $1.5 billion Cash purchase of minority interests in Arcelor Brasil: $3.7 billion Share buy-back and dividend: $1.0 billion The Company had total liquidity of $16.4 billion at June 30, 2007, consisting of cash and cash equivalents (including restricted cash and short-term investments of $6.8 billion), and available bank lines (including bank lines at the level of its operating subsidiaries) of $9.6 billion at June 30, 2007. Changes in current assets and current liabilities resulted in the use of cash during the three months ended June 30, 2007, of $587 million as compared to $653 million for the three months ended March 31, 2007, primarily due to an increase in trade accounts receivables and prepaid expenses, partially offset by an increase in trade payables. For the three months ended June 30, 2007, net cash provided by operating activities was $3.7 billion, as compared with $2.7 billion for the three months ended March 31, 2007. Capital expenditures during the three months ended June 30, 2007, increased to $1.3 billion as compared with $988 million for the three months ended March 31, 2007. Recent Developments On July 26, 2007, ArcelorMittal announced that it has reached an agreement with the Polish Government to acquire the outstanding 25.2% shares of ArcelorMittal Poland currently held by the Polish State and Treasury Ministry. ArcelorMittal has agreed to acquire each share at a price of Polish zloty ("PLN”) 6.5, valuing the remaining 25.2% of shares at approximately PLN 436 million (approx. $157 million). On July 20, 2007, ArcelorMittal, announced that it had reached a preliminary agreement to acquire two steel tube businesses from Vallourec. Vallourec Précision Soudage (VPS) produces about 100,000 tonnes of welded steel tubes for application in the automotive industry from two sites in France. Also based in France, Vallourec Composants Automobiles Vitry (VCAV) specialises in the design and manufacturing of tubular components for the automotive industry. Combining them with ArcelorMittal's existing pipes and tubes business, will enable an even more complete product offering range to automotive customers. On July 19, 2007, ArcelorMittal announced that it had been formally granted concessions by the Republic of Senegal to develop mining, transportation and logistics activities in the Faleme region of South East Senegal. On July 10, 2007, ArcelorMittal announced the signing of agreement and installation of European Works Council ("EWC”) agreement. The newly installed integrated ArcelorMittal EWC will replace the former EWCs that existed in both previous companies. On June 29, 2007, Mittal Steel announced the publication of the legal documentation for its merger with ArcelorMittal, a Luxembourg subsidiary. This was the first step of the previously-announced two-step merger process between Mittal Steel and Arcelor S.A. In the first step, Mittal Steel will merge into its wholly-owned non-operating subsidiary ArcelorMittal. On June 5, 2007, Mittal Steel publicly announced the results of its tender offer for the shares it did not hold in Arcelor Brasil. In the aggregate, Mittal Steel acquired 29.5% of the total share capital and 89.7% of the free float of Arcelor Brasil as of June 5, 2007, thereby increasing its previous 67.1% shareholding in Arcelor Brasil to 96.6%. Mittal Steel paid for the shares with $3.5 billion in cash and approximately 27.0 million Mittal Steel class A common shares, representing a total consideration of $5.2 billion. As required by Brazilian regulations, beginning on June 5, 2007 and ending at the latest on September 4, 2007, the remaining shareholders in Arcelor Brasil may sell their shares to Mittal Steel for R$53.89 per share (the same price offered to the Arcelor Brasil shareholders accepting the cash option of the offer) as adjusted pursuant to applicable law. On June 19, 2007, the Brazilian stock exchange regulator CVM announced that the Arcelor Brazil shares have been delisted. Mittal Steel will cause a general Arcelor Brasil shareholders’ meeting to be held in order to approve the redemption of the remaining shares. The redemption price will be equal to R$53.89 per share. Mittal Steel therefore expects that it will subsequently acquire the 18.3 million Arcelor Brasil shares that remained outstanding after the closing of the tender offer, which are valued at approximately $0.5 billion. Following the tender offer an additional 7.9 million Arcelor Brasil shares were purchased, resulting in an outstanding balance of $0.3 billion. Outlook for third Quarter 2007 The Company expects third quarter 2007 EBITDA to be between $4.7 to $4.9 billion, as compared with $4.4 billion in the third quarter of 2006. Total shipments, in the third quarter of 2007, are expected to decrease compared with the second quarter 2007 due to usual seasonal slowdown. In the Flat Carbon Americas segment EBITDA is expected to decrease slightly. EBITDA is also expected to decline in Flat Carbon Europe, Long Carbon Americas and Europe and AM3S segment due to seasonal activity slowdown. AACIS segment EBITDA is expected to remain stable. Stainless Steel EBITDA is expected to decline due to continuing market deterioration. Minority interest charge will be lower following the acquisition of Arcelor Brasil minority. The tax rate is expected to remain at approximately 25% for the year. 1 Shipments for the AM3S segment, which are mainly inter-company, are not consolidated in the total shipments of the combined company and are eliminated. 2 Gearing is defined as net debt divided by total equity 3 Based on 1H07 annualized levels ARCELORMITTAL UNAUDITED CONSOLIDATED BALANCE SHEETS     In millions of US dollars As of ACTUAL ACTUAL ACTUAL   June 30, 2007   March 31, 2007   December 31, 20061 ASSETS Current Assets Cash and cash equivalents, restricted cash and short-term investments $ 6,782 $ 8,277 $ 6,146 Trade accounts receivable – net 11,246 10,318 8,769 Inventories 19,448 19,319 19,238 Prepaid expenses and other current assets 6,091   5,838   5,209 Total Current Assets 43,567   43,752   39,362   Goodwill and intangible assets 14,954 10,720 10,782 Property, plant and equipment 57,836 54,351 54,696 Investments in affiliates and joint ventures 4,707 4,058 3,492 Deferred tax assets 1,503 1,563 1,670 Other assets 2,282   2,340   2,164 Total Assets $124,849   $116,784   $112,166   LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Payable to banks and current portion of long-term debt $7,617 $5,829 $4,922 Trade accounts payable 11,853 10,909 10,717 Accrued expenses and other current liabilities 10,741   10,061   8,921 Total Current Liabilities 30,211   26,799   24,560   Long-term debt, net of current portion 22,389 21,200 21,645 Deferred tax liabilities 7,625 7,419 7,274 Other long-term obligations and deferred employee benefits 9,677   8,182   8,496 Total Liabilities 69,902   63,600   61,975   Total Shareholders’ Equity 48,549 44,642 42,127 Minority Interest 6,398   8,542   8,064 Total Equity 54,947   53,184   50,191 Total Liabilities and Shareholders’ Equity   $124,849   $116,784   $112,166   1 Amounts are derived from the Company’s audited financial statements for the year ended December 31, 2006 ARCELORMITTAL UNAUDITED CONSOLIDATED STATEMENTS OF INCOME In millions of US dollars, except shares, per share, employee and shipment data   Three Months Ended Six Months Ended June 30, 2007   March 31, 2007   June 30, 2006 1,2,3   June 30, 2007   June 30, 2006 1,2,3     Actual   Actual   Pro forma   Actual   Pro forma STATEMENTS OF INCOME Sales $27,223 $24,476 $22,430 $51,699 $43,304 Depreciation 1,094 891 867 1,985 1,663 Operating Income 4,232 3,455 2,633 7,687 5,137 Operating Margin % 15.5% 14.1% 11.7% 14.9% 11.9%   Other income (expense) - net 62 21 (6) 83 2 Income from equity method investments 195 154 119 349 229 Financing costs - net (182)   (10)   (299)   (192)   (980) Income before taxes and minority interest 4,307 3,620 2,447 7,927 4,388 Income tax expense 1,087   934   310   2,021   343 Income before minority interest 3,220 2,686 2,137 5,906 4,045 Minority interest (497)   (436)   (320)   (933)   (625) Net income $2,723   $2,250   $1,817   $4,973   $3,420   Basic earnings per common share $1.97 $1.62 $1.31 $3.60 $2.47 Diluted earnings per common share 1.97 1.62 1.31 3.59 2.47 Weighted average common shares outstanding (in millions) 1,380 1,386 1,385 1,383 1,384 Diluted weighted average common shares outstanding (in millions) 1,382 1,388 1,386 1,385 1,386   EBITDA4 $5,326 $4,346 $3,500 $9,672 $6,800 EBITDA Margin % 19.6% 17.8% 15.6% 18.7% 15.7%   OTHER INFORMATION Total shipments of steel products5 (million metric tonnes) 28.7 27.0 29.1 55.7 56.9 Employees (in thousands)   314   316   330   314   330   1 The information provided assumes that the acquisition of Arcelor occurred at the beginning of the period presented. Arcelor is included on a pro forma basis assuming the acquisition of Dofasco and Sonasid occurred at the beginning of the period presented.     2 The information provided includes preliminary purchase price adjustments except for the adjustment for inventory     3 The information provided assumes that shares issued in connection with the acquisition of Arcelor were issued at the beginning of the period presented.     4 EBITDA is defined as operating income plus depreciation.     5 Some intercompany shipments are not eliminated ARCELORMITTAL UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS In millions of US dollars Three Months Ended   Six Months Ended June 30, 2007   March 31, 2007   June 30, 2006 1,2   June 30, 2007   June 30, 20061,2     Actual   Actual   Pro forma   Actual   Actual Operating activities: Net Income $2,723 $2,250 $1,817 $4,973 $3,420 Adjustments to reconcile net income to net cash provided by operations:             Minority interests 497 436 320 933 625 Depreciation 1,094 891 867 1,985 1663 Others 5 (274) (541) (269) (792) Changes in operating assets and liabilities, net of effects from acquisitions     (587)     (653)     415     (1,240)     (728)           Net cash provided by operating activities   3,732   2,650   2,878   6,382   4,188 Investing activities: Purchase of property, plant and equipment (1,330) (988) (1,022) (2,318) (1,959) Other investing activities (net)   (5,435)   862   39   (4,573)   (339) Net cash used in investing activities   (6,765)   (126)   (983)   (6,891)   (2,298) Financing activities: Proceeds (payments) from payable to banks and long-term debt 2,693 15 1,637 2,708 2,762 Dividends paid (644) (514) (1,729) (1,158) (1,914) Other financing activities (net)   (580)   46   (54)   (534)   (58) Net cash provided by (used in) financing activities   1,469   (453)   (146)   1,016   790 Net increase in cash and cash equivalents   (1,564)   2,071   1,749   507   2,680 Effect of exchange rate changes on cash   90   67   (112)   157   147 Change in cash and cash equivalents   $(1,474)   $2,138   $1,637   $664   $2,827   1 The information provided assumes that the acquisition of Arcelor occurred at the beginning of the period presented. Arcelor is included on a pro forma basis assuming the acquisition of Dofasco and Sonasid occurred at the beginning of the period presented.     2 The information provided includes preliminary purchase price adjustments except for the adjustment for inventory Appendix 1 - Second Quarter 2007 Key financial and operational information Amounts in millions of US dollars unless otherwise stated   Flat Carbon Americas   Flat Carbon Europe   Long Carbon Americas and Europe   AACIS   Stainless Steel   AM3S Financial Information Sales $5,916 $8,898 $6,157 $4,749 $2,655 $3,831   Depreciation 266 373 184 137 70 35   Operating income 846 1,176 1,129 1,019 237 184 Operating margin (as a percentage of sales) 14.3% 13.2% 18.3% 21.5% 8.9% 4.8% EBITDA 1,112 1,549 1,313 1,156 307 219 EBITDA margin (as a percentage of sales) 18.8% 17.4% 21.3% 24.3% 11.6% 5.7% Capital expenditure 373 331 260 240 77 35   Operational Information Crude Steel Production (Thousand MT) 7,466 9,835 6,490 5,294 578 - Steel Shipments (Thousand MT) 7,121 9,165 6,490 5,356 544 3,332 Average Steel Selling price (US$/MT) 715 832 782 640 4,731 NA Employees (000’S)   35.9   69.6   55.8   125.6   11.6   12.2   EBITDA is defined as operating income plus depreciation. Crude steel production is a combination of crude steel at the former Arcelor units and liquid steel at the former Mittal Steel units Some inter segment and intra segment sales have not been eliminated. Some inter-company shipments have not been eliminated. AM3S shipments are not consolidated. AM3S shipments exclude all hirework and commission shipments from April 1, 2007 onwards. Average steel selling prices are calculated as steel sales divided by steel shipments.   Appendix 2 - Quarter 2 2007 ArcelorMittal steel shipments by geographical location   Shipments (Thousand MT)   Q2 07   Q1 07   H1 07               Flat Carbon Americas:   7,121   6,597   13,718 North America1   5,910   5,404   11,314 South America   1,211   1,193   2,404 Flat Carbon Europe:   9,165   8,653   17,818 Europe   9,165   8,653   17,818 Long Carbon Americas and Europe:   6,490   6,169   12,659 North America2 1,061 763 1,824 South America 1,313 1,259 2,573 Europe   4,116   4,147   8,263 AACIS:   5,356   5,117   10,474 Africa 2,019 2,107 4,126 Asia, CIS & Other   3,337   3,011   6,348 Stainless Steel:   544   498   1,042   1 Includes shipments from Lazaro Cardenas, Mexico   2 Includes shipments from Sicartsa, Mexico   Some inter-company shipments have not been eliminated. AM3S shipments are not consolidated in the combined company total MITTAL STEEL COMPANY N.V. REPORTS RECORD RESULTS FOR THE SECOND QUARTER AND FIRST HALF 2007 Mittal Steel Company N.V. (referred to as "ArcelorMittal”, "Mittal Steel” or "the Company”) (New York: MT; Amsterdam: MT; Madrid: MTS; Paris: MTP; Brussels: MTBL; Luxembourg: MT), the world’s largest and most global steel company, today announced results for the three and six month periods ended June 30, 2007. H107 Highlights: Record quarterly and half-year results $9.7 billion EBITDA - triple H106 levels $7.7 billion operating income - triple H106 levels Shipments at 55.7 million metric tonne – almost double H106 levels $973m of synergies captured by end of H107 Financial highlights (on the basis of IFRS, amounts in US$ and Euros1): (US dollars in millions except earnings per share and shipments data) Results US Dollars Q2 2007 Actual   Q1 2007 Actual   Q2 2006 Actual   H1 2007 Actual   H1 2006 Actual Shipments (Million MT)2 28.7   27.0   15.2   55.7   29.4 Sales 27,223   24,476   9,230   51,699   17,660 EBITDA3 5,326   4,346   1,701   9,672   3,010 Operating income 4,232   3,455   1,359   7,687   2,311 Net income 2,723   2,250   897   4,973   1,507 Basic earnings per share $1.97   $1.62   $1.27   $3.60   $2.14 (Euros in millions except earnings per share and shipments data) Results Euros1   Q2 2007 Actual   Q1 2007 Actual   Q2 2006 Actual   H1 2007 Actual   H1 2006 Actual Shipments (Million MT)2   28.7   27.0   15.2   55.7   29.4 Sales   20,194   18,675   7,336   38,898   14,362 EBITDA3   3,951   3,316   1,352   7,277   2,448 Operating income   3,139   2,636   1,080   5,784   1,879 Net income   2,020   1,717   713   3,742   1,226 Basic earnings per share   €1.46   €1.24   €1.01   €2.71   €1.74 1 US dollars have been translated into Euros using an average exchange rate (US$/Euro) of 1.3481, 1.3106, 1.2582, 1.3291 and 1.2296 for Q2 2007, Q1 2007, Q2 2006, 1H 2007 and 1H 2006, respectively. 2 Some inter-company shipments are not eliminated. 3 EBITDA is defined as operating income plus depreciation. Inter-company transactions have been eliminated in consolidation. The financial information in this press release and Appendix 1 has been prepared in accordance with International Financial Reporting Standards as endorsed by the European Union ("IFRS”). While the financial information included in this announcement has been prepared in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Auditing Standards 34, "Interim Financial Reporting”. Unless otherwise noted the numbers in this press release have not been audited. MITTAL STEEL COMPANY N.V. SECOND QUARTER AND FIRST HALF 2007 RESULTS Net income for the three months ended June 30, 2007, was $2.7 billion, or $1.97 per share, as compared with net income of $2.3 billion, or $1.62 per share, for the three months ended March 31, 2007. Net income in the second quarter 2007 was higher than first quarter 2007 primarily due to strong demand for our products, resulting in higher shipments and higher selling prices, offset in part by higher costs. Sales and operating income for the three months ended June 30, 2007, were $27.2 billion and $4.2 billion, respectively, as compared with $24.5 billion and $3.5 billion, respectively, for the three months ended March 31, 2007. Total steel shipments for the three months ended June 30, 2007, were 28.7 million metric tonnes as compared with 27.0 million metric tonnes for the three months ended March 31, 2007. Analysis of operations for Q207 v Q206 During 2006, the Company’s operations have changed substantially, primarily following the merger with Arcelor which has been consolidated from August 1, 2006, and therefore, the Q207 and Q206 results are not comparable on a like-for-like basis. Sales for the three months ended June 30, 2007, were $27.2 billion as compared with $9.2 billion for the three months ended June 30, 2006. Depreciation for the three months ended June 30, 2007, was $1.1 billion as compared with $342 million for the three months ended June 30, 2006. Operating income for the three months ended June 30, 2007, increased to $4.2 billion as compared with $1.4 million for the three months ended June 30, 2006. Income from equity method investments for the three months ended June 30, 2007, was $195 million as compared with $13 million for the three months ended June 30, 2006. Net financing cost for the three months ended June 30, 2007, was $182 million as compared with $20 million for the three months ended June 30, 2006. Income tax expense for the three months ended June 30, 2007, was $1.1 billion as compared with $339 million for the three months ended June 30, 2006. The effective tax rate for the three months ended June 30, 2007 remained flat at 25.2% as compared with the three months ended June 30, 2006. Net income for the three months ended June 30, 2007, was $2.7 billion as compared with $897 million for the three months ended June 30, 2006. Analysis of operations for Q207 v Q107 Sales for the three months ended June 30, 2007, were $27.2 billion as compared with $24.5 billion for the three months ended March 31, 2007. Sales were higher in the second quarter due to higher shipment and higher average steel selling prices. The company enjoyed strong demand for its products in the second quarter as compared to the first quarter 2007. Depreciation for the three months ended June 30, 2007, was $1.1 billion as compared with $891 million for the three months ended March 31, 2007. Depreciation was higher in the second quarter due to an increase of plant, property and equipment, amortisation of intangibles recognised in purchase price allocations and alignment of definitions. Operating income for the three months ended June 30, 2007, increased to $4.2 billion as compared with $3.5 billion for the three months ended March 31, 2007. Income from investments for the three months ended June 30, 2007, was $195 million as compared with $154 million for the three months ended March 31, 2007. Net financing costs for the three months ended June 30, 2007, were $182 million as compared with $10 million for the three months ended March 31, 2007. Included in the net financing cost is net interest expense which increased by $33 million to $296 million for the three months ended June 30, 2007, as compared to $263 million for the three months ended March 31, 2007. Net financing costs for the three months ended June 30, 2007 include other gains such as Canadian dollar swap, foreign exchange and certain financial instruments. Income tax expense for the three months ended June 30, 2007, was $1.1 billion as compared with $934 million for the three months ended March 31, 2007. The effective tax rate for the three months ended June 30, 2007, was 25.2% as compared with 25.8% for the three months ended March 31, 2007. Minority interest during the three months ended June 30, 2007, was $497 million (of which Arcelor Brasil is $152 million) as compared with $436 million (of which Arcelor Brasil is $141 million) for the three months ended March 31, 2007. Net income for the three months ended June 30, 2007, increased to $2.7 billion as compared with $2.3 billion for the three months ended March 31, 2007. Liquidity and Capital Resources ArcelorMittal's principal sources of liquidity are cash generated from its operations, its credit lines at the corporate level and various working capital credit lines at its operating subsidiaries. As of June 30, 2007, the Company’s cash and cash equivalents, including restricted cash and short-term investments, amounted to $6.8 billion as compared to $8.3 billion at March 31, 2007. Net debt for the second quarter, which includes long-term debt plus short-term debt less cash and cash equivalents, restricted cash and short-term investments, increased by $4.5 billion to $23.2 billion. Gearing4 has increased from 35% to 42% and net debt to EBITDA ratio increased from 1.1x5 at March 31, 2007, to 1.2x at June 30, 2007. The increase in net debt was primarily due to the following: Acquisition of Sicartsa, Mexico: $1.5 billion Cash purchase of minority interests in Arcelor Brasil: $3.7 billion Share buy-back and dividend: $1.0 billion The Company had total liquidity of $16.4 billion at June 30, 2007, consisting of cash and cash equivalents (including restricted cash and short-term investments of $6.8 billion), and available bank lines (including bank lines at the level of its operating subsidiaries) of $9.6 billion at June 30, 2007. Changes in current assets and current liabilities resulted in the use of cash during the three months ended June 30, 2007 of $587 million as compared to $653 million for the three months ended March 31, 2007, primarily due to an increase in trade accounts receivables and prepaid expenses, partly offset by an increase in trade payables. For the three months ended June 30, 2007, net cash provided by operating activities was $3.7 billion, as compared with $2.7 billion for the three months ended March 31, 2007. Capital expenditures during the three months ended June 30, 2007, increased to $1.3 billion as compared with $988 million for the three months ended March 31, 2007. Recent Developments On July 26, 2007, ArcelorMittal announced that it has reached an agreement with the Polish Government to acquire the outstanding 25.2% shares of ArcelorMittal Poland currently held by the Polish State and Treasury Ministry. ArcelorMittal has agreed to acquire each share at a price of Polish zloty ("PLN”) 6.5, valuing the remaining 25.2% of shares at approximately PLN 436 million (approx. $157 million). On July 20, 2007, ArcelorMittal, announced that it had reached a preliminary agreement to acquire two steel tube businesses from Vallourec. Vallourec Précision Soudage (VPS) produces about 100,000 tonnes of welded steel tubes for application in the automotive industry from two sites in France. Also based in France, Vallourec Composants Automobiles Vitry (VCAV) specialises in the design and manufacturing of tubular components for the automotive industry. Combining them with ArcelorMittal's existing pipes and tubes business, will enable an even more complete product offering range to automotive customers. On July 19, 2007, ArcelorMittal announced that it had been formally granted concessions by the Republic of Senegal to develop mining, transportation and logistics activities in the Faleme region of South East Senegal. On July 10, 2007, ArcelorMittal announced the signing of agreement and installation of European Works Council ("EWC”) agreement. The newly installed integrated ArcelorMittal EWC will replace the former EWCs that existed in both previous companies. On June 29, 2007, Mittal Steel announced the publication of the legal documentation for its merger with ArcelorMittal, a Luxembourg subsidiary. This was the first step of the previously-announced two-step merger process between Mittal Steel and Arcelor S.A. In the first step, Mittal Steel will merge into its wholly-owned non-operating subsidiary ArcelorMittal. On June 5, 2007, Mittal Steel publicly announced the results of its tender offer for the shares it did not hold in Arcelor Brasil. In the aggregate, Mittal Steel acquired 29.5% of the total share capital and 89.7% of the free float of Arcelor Brasil as of June 5, 2007, thereby increasing its previous 67.1% shareholding in Arcelor Brasil to 96.6%. Mittal Steel paid for the shares with $3.5 billion in cash and approximately 27.0 million Mittal Steel class A common shares, representing a total consideration of $5.2 billion. As required by Brazilian regulations, beginning on June 5, 2007 and ending at the latest on September 4, 2007, the remaining shareholders in Arcelor Brasil may sell their shares to Mittal Steel for R$53.89 per share (the same price offered to the Arcelor Brasil shareholders accepting the cash option of the offer) as adjusted pursuant to applicable law. On June 19, 2007, the Brazilian stock exchange regulator CVM announced that the Arcelor Brazil shares have been delisted. Mittal Steel will cause a general Arcelor Brasil shareholders’ meeting to be held in order to approve the redemption of the remaining shares. The redemption price will be equal to R$53.89 per share. Mittal Steel therefore expects that it will subsequently acquire the 18.3 million Arcelor Brasil shares that remained outstanding after the closing of the tender offer, which are valued at approximately $0.5 billion. Following the tender offer an additional 7.9 million Arcelor Brasil shares were purchased, resulting in an outstanding balance of $0.3 billion. 4 Gearing defined as net debt divided by total equity 5 Based on 1H07 annualized levels MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION MITTAL STEEL COMPANY N.V. UNAUDITED CONSOLIDATED BALANCE SHEETS As of June 30, March 31, December 31, In millions of US dollars 2007 2007 2006 1 ASSETS Current Assets Cash and cash equivalents, restricted cash and short-term investments $ 6,782 $ 8,277 $ 6,146 Trade accounts receivable – net 11,246 10,318 8,769 Inventories 19,448 19,319 19,238 Prepaid expenses and other current assets 6,091 5,838 5,209 Total Current Assets 43,567 43,752 39,362   Goodwill and intangible assets 14,954 10,720 10,782 Property, plant and equipment –net 57,836 54,351 54,696 Investments in affiliates and joint ventures 4,707 4,058 3,492 Deferred tax assets 1,503 1,563 1,670 Other assets 2,282 2,340 2,164 Total Assets $124,849 $116,784 $112,166   LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Payable to banks and current portion of long-term debt $7,617 $5,829 $4,922 Trade accounts payable 11,853 10,909 10,717 Accrued expenses and other current liabilities 10,741 10,061 8,921 Total Current Liabilities 30,211 26,799 24,560   Long-term debt, net of current portion 22,389 21,200 21,645 Deferred tax liabilities 7,625 7,419 7,274 Other long-term obligations and deferred employee benefits 9,677 8,182 8,496 Total Liabilities 69,902 63,600 61,975   Total Shareholders’ Equity 48,549 44,642 42,127 Minority Interest 6,398 8,542 8,064 Total Equity 54,947 53,184 50,191 Total Liabilities and Shareholders’ Equity $124,849 $116,784 $112,166   1 Amounts are derived from the Company’s audited financial statements for the year ended December 31, 2006 MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION MITTAL STEEL COMPANY N.V. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME DATA & OTHER INFORMATION In millions of US dollars, except shares, per share and shipment data Three Months Ended Six Months Ended June 30, 2007 March 31, 2007 June 30, 2006 June 30, 2007 June 30, 2006 STATEMENT OF INCOME   Sales $27,223 $24,476 $9,230 $51,699 $17,660 Depreciation 1,094 891 342 1,985 699 Operating income 4,232 3,455 1,359 7,687 2,311 Operating margin % 15.5% 14.1% 14.7% 14.9% 13.1%   Other income (expense) – net 62 21 (6) 83 1 Income from equity method investments 195 154 13 349 38 Financing costs – net (182) (10) (20) (192) (195) Income before taxes and minority interest 4,307 3,620 1,346 7,927 2,155 Income tax expense 1,087 934 339 2,021 456 Income before minority interest 3,220 2,686 1,007 5,906 1,699 Minority interest (497) (436) (110) (933) (192) Net income $2,723 $2,250 $897 $4,973 $1,507   Basic earnings per common share $1.97 $1.62 $1.27 $3.60 $2.14 Diluted earnings per common share 1.97 1.62 1.27 3.59 2.13 Weighted average common shares outstanding (in millions) 1,380 1,386 705 1,383 705 Diluted weighted average common shares outstanding (in millions) 1,382 1,388 706 1,385 706   EBITDA1 $5,326 $4,346 $1,701 $9,672 $3,010 EBITDA Margin % 19.6% 17.8% 18.4% 18.7% 17.0%   OTHER INFORMATION Total shipments of steel products2 (Millions of metric tonnes) 28.7 27.0 15.2 55.7 29.4   1 EBITDA is defined as operating income plus depreciation.   2 Some inter-company shipments are not eliminated MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION MITTAL STEEL COMPANY N.V. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS In millions of US dollars Three Months Ended Six Months Ended June 30, 2007 March 31, 2007 June 30, 2006 June 30, 2007 June 30, 2006 Operating activities: Net Income $2,723 $2,250 $897 $4,973 $1,507 Adjustments to reconcile net income to net cash provided by operations:             Minority interests 497 436 110 933 192 Depreciation 1,094 891 342 1,985 699 Others 5 (274) 34 (269) (173) Changes in operating assets and liabilities, net of effects from acquisition     (587)     (653)     336     (1,240)     (118) Net cash provided by operating activities 3,732 2,650 1,719 6,382 2,107 Investing activities:           Purchase of property, plant and equipment (1,330) (988) (348) (2,318) (611) Acquisition of net assets of subsidiaries, net of cash acquired (5,435) 862 (942) (4,573) (957) Net cash used in investing activities (6,765) (126) (1,290) (6,891) (1,568) Financing activities:           Proceeds (payments) from payable to banks and long-term debt 2,693 15 (171) 2,708 (164) Dividends paid (644) (514) (105) (1,158) (241) Other financing activities (net) (580) 46 3 (534) 2 Net cash provided by (used in) financing activities 1,469 (453) (273) 1,016 (403) Net increase (decrease) in cash and cash equivalents (1,564) 2,071 156 507 136 Effect of exchange rate changes on cash 90 67 (86) 157 (50)             At the beginning of the period 8,158 6,020 2,051 6,020 2,035 At the end of the period $6,684 $8,158 $2,121 $6,684 $2,121