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Company News, Capital market-relevant press releases, 2001-04-27, 02:00 AM

ThyssenKrupp Stahl disposes of Brazilian iron ore interests as part of continuing portfolio optimization at ThyssenKrupp.

ThyssenKrupp Stahl (TKS) and Companhia Vale do Rio Doce (CVRD), Rio de Janeiro, announce that they have signed an agreement on the sale of Ferteco Mineração S.A. (Ferteco), TKS´s Brazilian iron ore mining company. The about US$700 million (Euros 793 million) transaction was concluded today. The required corporate approvals have been obtained. TKS and CVRD have also entered into a long-term agreement on the supply of iron ore to TKS on competitive conditions. CVRD is the world´s biggest iron ore producer.

Ferteco is Brazil´s third-biggest iron ore producer and one of the leading iron ore companies worldwide. It operates two mines in the state of Minas Gerais and sold 25 million metric tons of iron ore in the year 2000. The company also has its own terminal at the port of Sepetiba and holds a stake in the rail company MRS Logística. In fiscal year 1999/2000, Ferteco achieved sales of Euros 391 million with around 1,400 employees.

The disposal by TKS of its iron ore interests, a non-core activity, represents a further important step in the value-enhancing portfolio optimization process at ThyssenKrupp. The consolidation process taking place in the iron ore industry since last year offered TKS the chance of an attractive strategic premium while also securing its iron ore supplies by means of a long-term agreement. The successful sale provides Thyssen Krupp Stahl AG and the Group with a significant liquidity inflow to reduce financial debt. In addition it will provide new latitude for further growth in the core activities.

Prof. Dr. Ekkehard Schulz, Executive Board Chairman of ThyssenKrupp and Supervisory Board Chairman at TKS said: "This transaction creates value for ThyssenKrupp Stahl and the ThyssenKrupp Group as a whole. It represents a continuation of our value-based management strategy".

Dr. Wolfgang Kohler, Chairman of Thyssen Krupp Stahl AG, said: "We are extremely pleased with the results of the tender process. Furthermore, the alliance of Ferteco and CVRD will strengthen our 37-year-old relations with CVRD as one of our key iron ore suppliers".

ThyssenKrupp Stahl is the second-biggest producer of flat carbon steel in Europe and ranks number four in the world. In fiscal year 1999/2000, ThyssenKrupp Steel´s Carbon business unit generated sales of Euros 7.7 billion with 36,670 employees.

The investment banks Schroder Salomon Smith Barney and UBS Warburg assisted ThyssenKrupp in successfully completing this transaction.

Duisburg, April 27, 2001

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