Acquisition Process

ArcelorMittal is a successor to Mittal Steel, a business founded in 1989 by Mr. Lakshmi N. Mittal, the Chairman of the Board of Directors and Chief Executive Officer of ArcelorMittal. It has experienced rapid and steady growth since then largely through the consistent and disciplined execution of a successful consolidation-based strategy. Mittal Steel made its first acquisition in 1989, leasing the Iron & Steel Company of Trinidad and Tobago. Some of its principal acquisitions since then include Thyssen Duisburg (Germany) in 1997, Inland Steel (USA) in 1998, Unimetal (France) in 1999, Sidex (Romania) and Annaba (Algeria) in 2001, Nova Hut (Czech Republic) in 2003, BH Steel (Bosnia), Balkan Steel (Macedonia), PHS (Poland) and Iscor (South Africa) in 2004, ISG (USA), Hunan Valin (China) and Kryvorizhstal (Ukraine) in 2005, three Stelco Inc. subsidiaries (Canada) and Arcelor in 2006. Arcelor was created in February 2002 by the combination of three steel-making companies: Aceralia Corporacin Siderrgica ("Aceralia"), Arbed and Usinor, to create a global presence in the steel industry. At the time of its acquisition by Mittal Steel in 2006, Arcelor was the second largest steel producer in the world in terms of production, with 2005 production of 46.7 million tonnes of steel and 2005 revenues of 32.6 billion. It operated in all key end markets: the automotive industry, construction, household appliances, packaging and general industry. Arcelor enjoyed leading positions in Western Europe and South America, in particular due to its Brazilian operations.

In 2007, ArcelorMittal continued to pursue a disciplined growth strategy, with a total of 35 transactions announced in Argentina, Austria, Canada, China, Estonia, France, Germany, Italy, Mexico, Poland, Russia, Slovakia, South Africa, Turkey, the United Kingdom, Uruguay, the United States and Venezuela, a number of which were completed in 2007. During 2007, ArcelorMittal also announced or completed buy-out offers for minority interests in certain of its subsidiaries in Argentina, Brazil and Poland. ArcelorMittal also initiated development plans for its greenfield projects in India, Liberia and Senegal and announced new prospective development projects in Mauritania, Mozambique, Nigeria, Russia, Saudi Arabia and Turkey. During the first eight months of 2008, ArcelorMittal continued making investments, with significant transactions announced in Australia, Brazil, Canada, Costa Rica, France, Russia, South Africa, Sweden, Turkey, United Arab Emirates, the United States, and Venezuela, the majority of which have been completed. During the last four months of 2008, ArcelorMittal largely suspended mergers and acquisitions and other investment activities in light of the deteriorating economic and market environment. ArcelorMittal has proven expertise in acquiring companies and turning around under-performing assets and believes that it has successfully integrated its previous key acquisitions by implementing a "best practices" approach in operations and management to enhance profitability. Since the acquisition by Mittal Steel of Arcelor, a company of approximately equivalent size, the combined company has reached significant milestones in its operational integration process ahead of schedule, having

consolidated support functions, optimised its supply chain and procurement structure and leveraged research and development services across a larger base, thereby achieving cost savings and revenue synergies, as well as other synergistic benefits. As of 31 December 2008, ArcelorMittal had fully realised its targeted $1.6 billion in synergies from the merger. ArcelorMittal has grown through the acquisition of numerous steel-making and other assets, which currently constitute its major operating subsidiaries. More recently, ArcelorMittal's acquisitions have been concentrated on vertical integration (i.e., acquisitions of raw material producers or production sites). ArcelorMittal's principal investments and acquisitions (including Greenfield projects), during the year ended 31 December 2008, are summarised below. The bulk of these acquisitions and investments were made prior to the sharp downturn in the steel market starting in September 2008. Since then the Company has sharply curtailed its M&A and investment activities and placed under review as a general matter its investment projects involving significant capital expenditure, including those summarised below and those announced in prior years. Many of these projects, particularly "Greenfield" projects, (i.e., new-build construction projects) and large "Brownfield" projects (i.e., expansion or improvement of existing sites) are in any case subject to the receipt of various regulatory approvals without which implementation cannot begin. As discussed more fully in "Item 5-Operating and Financial Review and Prospects-OverviewInitiatives in

Response to Changing Market Conditions", the Company has sharply reduced its anticipated capital expenditures for 2009 to $3 billion, of which $2.5 billion is for maintenance.

The Merger Process 2006 was a very exciting and challenging year for ArcelorMittal. The new company was at the forefront of the consolidation process, leading the industry through mergers and acquisitions. January 2006 Historic moment for the Global Steel Industry The year started with the historic launch of the Mittal Steel offer to the shareholders of Arcelor to create the world's first 100 million tonne plus steel producer. The aim of increasing globalisation and consolidation, necessary in the steel industry, defines the deal and sets the pace for the industry. February 2006 - Expansion and strong results Mittal Canada completes the acquisition of three Stelco subsidiaries, the Norambar and Stelfil plants, located in Quebec, and the Stelwire plant in Ontario. April 2006 - Renewal after Hurricane Katrina and new galvanised line Out of the devastation of Hurricane Katrina, arose a revitalised Mississippi youth baseball field, rebuilt with the help of Mittal Steel USA and Arcelor. May 2006 - US clears the way for bid Mittal Steel announces US antitrust clearance for Arcelor bid and the approval of the offer documents by European regulators. June 2006 - Historic agreement to create the No.1 Global Steel Company Creating the world's largest steel company, Mittal Steel and Arcelor reach an agreement to combine the two companies in a merger of equals. September 2006 - New dividend policy Arcelor Mittal announces new dividend policy, under which it will pay out 30% of net income annually. 93.7% of Arcelor shareholders tender their shares to Mittal Steel. Arcelor Mittal confirms Value Plan up to 2008. December 2006 - Deals, deals, deals! Arcelor Mittal sells Thringen long carbon steel plant to Grupo Alfonso Gallardo for 591 million euros, as part of Mittal Steel's commitments to the European Commission.