(Madrid 5th October 2004).  Optimisation of the current production capacities of the factories in the group and commitment to commercial excellence in customer service are the pillars on which the TUBACEX 2010 Strategic Plan, presented today by the company in the Madrid Stock Exchange, has been built.  Tubacex foresees a growth of 65% in sales, and of 125% in the gross operating margin (EBITDA), as well as an increase of 3% in its share of the world seamless stainless steel tube market.

In his presentation, the president of the company, Alvaro Videgain, pointed out that the strategic alternative seeks profitable organic growth, minimises Group investment requirements and maximises the expected value creation for shareholders.

After the company’s internationalisation process (1999-2003) and the successful implementation of the competitiveness plan in the Acería de Alava, Tubacex Tubos Inoxidables (TTI) and Schoeller Bleckmann Edelstahlrohr (SBER) subsidiaries, TUBACEX is approaching its new Strategic Plan from an extremely solid starting point, which is reflected in its financial and asset position (equity over liabilities of 51%), in the important growth in sales (60% between 1999 and 2003), in consistent profitability (average EBITDA over sales of 13.25% between 1998 and 2003) and a  world market share which has become consolidated at  22% in its range of products.

From the industrial point of view, Tubacex plans to obtain a new scale of productivity and profitability by taking advantage of synergies between plants that will substantially improve the competitive position of the Group without undertaking significant investments.

In the same way, the manufacture of new products, steels and applications with higher value added and  higher demand growth expectations is contemplated.

During the presentation at the Madrid Stock Exchange, the president of TUBACEX, Alvaro Videgain, explained the forecasts for the present financial year 2004, which the company expects to close with double the net profit achieved in the previous year.

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, with a consolidated world market share over 20%, has reached a 6.02 Million Euro consolidated net profit in the first semester of 2004. This means a 88.3% increase over the consolidated net profit registered in the same period of 2003, which was 3.20 Million Euros.

This increase in results is a direct consequence of the good performance of the Austrian and the North American business units and the improvements coming from the Competitiveness Plan started in 2003.

In the contrary, the increase in raw material prices and mainly the depreciation of the dollar against the euro have continued affecting the Spanish subsidiaries sine they have a greater exposure to the Asian and North American markets.

Net cash flow reached 16.16 Million Euros, 29.5% more than the figure of 12.49 Million Euros for the previous year.

Consolidated Sales of the Group reached 168.13 Million Euros, 24.4% above the previous year, when sales of 135.18 Million Euros were reached.

TUBACEX considers these results as positive as they confirm the improvement of the market situation, with  increases prices, but that still needs a major consolidation and stability in the levels of demand.

Moreover, the important advance in the implementation of the projects included in the Competitiveness Plan started in 2003 – materialized in the improvement in costs and competitiveness of the main business units of the Group – has already started to show positive results during the first semester of 2004.

TUBACEX will launch during the next months a new Strategic Plan for the period 2004 – 2010 to guarantee the Group´s future profitability, development and competitiveness.

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, with a consolidated world market share over 20%, has reached a 2.90 Million Euros consolidated net profit in the first quarter of 2004 according to information given by the company to the Spanish National Stock Exchange.

This means a 20.3% increase over the consolidated net profit registered in the same period of 2003, which was 2.41 Million Euros.

Net cash flow reached 8.89 Million Euros, 20.3% more than the figure of 7.39 Million Euros for the previous year.

Consolidated Sales of the Group reached 76.93 Million Euros, 9.8% above the previous year, when sales of 70.06 Million Euros were reached.

TUBACEX considers these results as positive as they confirm the improvement of the market situation, with  increases both in demand and prices.

Moreover, the implementation of the Competitiveness Plan – started in 2003 – which has identified an important potential improvement in costs and competitiveness of the Group´s business units – has already started to show positive results, improving industrial synergies and maximizing the economies of scale of the actual Group´s industrial organization.