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Capital market-relevant press releases, 2002-10-23, 02:00 AM

Price increase in first quarter 2003

As announced in August, ThyssenKrupp Stahl AG is to raise its prices in the first quarter 2003 by a further 20 euros/t. Like the three previous price rises in April, July and October 2002 this increase only affects quarterly orders. For that reason, the aim in the negotiations with the automotive industry over annual agreements for 2003 will be to achieve substantial price increases there as well. "We have a good starting position going into the negotiations," says Dr. Jost A. Massenberg, Executive Board Member of ThyssenKrupp Stahl AG responsible for sales. He names the main reasons for the price increase as inadequate revenues and higher costs, particularly for ore, energy and wages.

A renewed build-up of stocks in the course of 2002 had a stabilizing price effect following a significant reduction in inventory levels at the turn of the year 2001/2002. "Despite the urgently needed improvements in prices, which we have raised by roughly 80 euros/t in three steps since spring, the steel market is only in the middle of an upward price cycle, so there is still potential available in 2003," says Dr. Massenberg. ThyssenKrupp Stahl AG`s aim for the coming year is a "dynamic stabilization" of the price level.

The European market is currently profiting from decreasing or stable imports. They are significantly influenced by the situation in the USA. Although prices have fallen in recent weeks by 20 to 30 USD/short t, Dr. Massenberg sees no direct risk of product flows being redirected to Europe or of the price falls in the USA spreading to Europe.

"The sales principle for 2003 at ThyssenKrupp Stahl continues to be: Price before quantity. We will thus remain a predictable partner for distributors and steel users," emphasizes Dr. Massenberg.

Contact:

ThyssenKrupp Steel AG

Erwin Schneider
Tel.: +49 203 / 52 - 2 56 90
Fax: +49 203 / 52 - 2 57 07
e-mail: erwin.schneider@tks.thyssenkrupp.com

Dietmar Stamm
Tel.: +49 203 / 52 - 2 62 67
Fax: +49 203 / 52 - 2 57 07
e-mail: dietmar.stamm@tks.thyssenkrupp.com

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