SSAB divests IPSCO Tubulars for USD 4,025 million in cash

SSAB divests its North American tubular operations ("IPSCO Tubulars") to Evraz for USD 4,025 million in cash.

• The transaction allows SSAB to better focus on and more rapidly develop its high-strength steel niche
• SSAB retains the majority of IPSCO's steel production capacity and also the full synergy potential declared at the time of the acquisition of IPSCO
• Proceeds to be used for debt reduction. SSAB's net debt/equity ratio pro forma 31 December 2007 decreases from 148% to 62%

SSAB today announces an agreement with Evraz Group S.A. ("Evraz") to sell SSAB's North American Tubulars operations, IPSCO Tubulars, for USD 4,025 million on a debt and cash free basis. IPSCO Tubulars was acquired as part of SSAB's acquisition of IPSCO in 2007 and had sales of USD 2,4 billion and EBITDA of USD 0,4 billion in 2007. No capital gain or loss is expected from the transaction.

The transaction is expected to close in the second quarter of 2008 and is subject to approvals from US and Canadian regulatory authorities.

The agreement between SSAB and Evraz involves the sale of 12 tubular locations, including, the Regina and Koppel steel mills, that directly supply the tubular operations, the Regina coil processing facility, and related scrap facilities.

IPSCO Tubulars has approximately 3,250 employees.

SSAB will retain the majority of the steel production capacity it acquired as part of its acquisition of IPSCO, including steel mills located in Mobile (Alabama) and Montpelier (Iowa) together with four cut-to-length facilities. In aggregate, these facilities have an annual capacity of approximately 2,5 million tonnes of crude steel production. The retained units have approximately 1,050 employees.

The IPSCO brand is closely associated with the tubular business and is included in the transaction. The steel operations retained within SSAB will operate as a Division within SSAB. SSAB will retain the right to use the IPSCO brand during a transition period.

"This transaction allows us to focus on our core business – to be a global leader within our high strength steel niches. We can further grow and develop our steel operations and expand into new markets. IPSCO Tubulars will get an owner with an interest and focus in the tubular business", says Olof Faxander, President and CEO of SSAB.