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Kobe Steel and India's SAIL sign MOU for Comprehensive Strategic Collaboration

November 30, 2010

TOKYO, November 30, 2010 - Kobe Steel, Ltd. and India's public-sector company, Steel Authority of India Limited (SAIL), have signed a memorandum of understanding (MOU) for comprehensive strategic collaboration covering technologies, projects and other areas. The MOU was signed by Mr. Hiroshi Sato of Kobe Steel and Mr. C. S. Verma of SAIL in the presence of Mr. P. K. Misra, Secretary (Steel) Government of India, and senior officials from Kobe Steel and SAIL on November 30, 2010 in Tokyo.

With India's steel industry and steel-related business showing remarkable growth and promising development for the future, Kobe Steel and SAIL intend to build a relationship of mutual benefit under the MOU. Both companies plan to form teams that will carry out collaborative work to lead to actual projects.

Kobe Steel and SAIL have already begun a feasibility study for a joint venture that utilizes Kobe Steel's ITmk3^® ironmaking process. Both companies share the common view of desiring to further develop this relationship, which led to the formation of this MOU. With reference to finished products, specific projects/studies will be undertaken to explore the possibility of producing high value products, such as (i) products for automobile, (ii) products for nuclear power plants and conventional power plants such as forged material and tubing material, (iii) special alloy steel and bars, and (iv) stainless steel tube and/or any other product mutually agreed to between Kobe Steel and SAIL. If Kobe Steel and/or SAIL have contractual agreements with other companies, the items covered under such agreements would not be considered in the MOU.

SAIL and Kobe Steel wish to work together for meeting the requirements of sophisticated steel products for India's growing economy. SAIL is India's largest steelmaker and has numerous iron ore and coal mines. Kobe Steel has world-class technologies for producing high value-added steel products, but also raw material processing and iron unit production including pellets, direct reduced iron and the ITmk3^® ironmaking process.

Both companies intend to build a cooperative relationship covering a wide range of fields, from upstream to downstream processes, which will enable them to mutually explore collaborative efforts and ventures in the Indian and global market.