PRESS RELEASE

TUBACEX WILL INCREASE THE PRICE OF ITS PRODUCTS IN JANUARY 2004

(Llodio, December 16th, 2003).-

TUBACEX Group will increase the price of its products from the 1st of January 2004. The reason for this increase is the rise experienced by the production costs and the raw material prices. This increase will affect to all the range of products produced by the Group.

Prices have remained without increases during the last two years

PRESS RELEASE

The company’s fifth warehouse, involving an investment of one million euros

TUBOS MECANICOS, A SUBSIDIARY OF TUBACEX,
OPENS A WAREHOUSE IN VALENCIA

(Llodio, 11 December 2003).-

Tubos Mecánicos S.A., one of the companies belonging to the TUBACEX Group, has opened a warehouse in the locality of Alaquás, in the Valencia Autonomous Community. This is the company’s fifth warehouse and is intended as the base from which to enhance marketing of its products in this region and surrounding areas.

The new warehouse, which has involved the investment of approximately one million euros, has a covered surface area of 1,200 square metres and is fitted with the latest material handling and cutting equipment, which will enable it to offer both a stock of products suited to market requirements and also provide a better service to its customers.

The registered office of Tubos Mecánicos S.A. is in Barcelona. In addition to the said new facility in Valencia, the company also has warehouses in Barcelona, Madrid, Zaragoza and Murga (Alava province), with the headquarters of its subsidiary, Tubos Mecánicos Norte S.A., in the latter.

The main activity of this TUBACEX Group company is marketing what is known as “mechanical tube” (hollow bar) in carbon steel, a product which is used in the manufacture of machined parts. It also sells tubes for hydraulic and pneumatic circuits, tubes for cylinders, lapping and pre-lapping items and chrome-plated bars, which are generally used in the capital equipment industry.

The company sells its products mainly on the domestic market, where it holds a leading position. It also manufactures some products for export, particularly to Portugal and South America.

Tubos Mecánicos achieved sales of 22.19 million euros in financial year 2002 and expects to beat this figure in 2003.

PRESS RELEASE

TUBACEX ACHIEVES 5,77 MILLION EURO PROFIT BEFORE TAXES BETWEEN JANUARY AND SEPTEMBER

*Tubacex foresees a progressive improvement in the demand of its products during year 2004

(Llodio, November 7th, 2003).-

TUBACEX, the world's second largest seamless stainless steel tube manufacturer, with a consolidated world market share over the 20%, has reached a 5,77 Million Euros profit before taxes in the January-September 2003 period, a 56% decrease over the same period of the previous year.

Consolidated operative result (EBIT) reached 8.09 Million Euros, a 51.7% decrease against the result achieved during the first nine months of the previous year.

Profit after taxes reached 3.33 Million Euros, 71.4% less than the figure of 11.64 Million Euros over the previous year because of a higher fiscal burden due to the fact that fiscal credit operations carried out in the previous year were booked as assets.

Net cash flow, not affected by the abovementioned fact, was 15.80 Million Euros, 33.1% less than the previous year. This generation of funds added to the company low indebtedness level - the Group´s net debt over total shareholders equity and liabilities at the end of September was 25% - confirm the Group´s financial and net worth soundness.

Consolidated sales of the Group reached 191.28 Million Euros, 10.3% lower than the sales reached the previous year.

These results reflect the market situation during 2003, characterised by an important adjust in the sector, with an important decrease in the level of activity and investment in the main industrial sectors, with a medium depreciation of the dollar against the euro in this period above the 20% and with an increase in raw materials prices, near to 60% with respect to the nickel, which has been difficult to transfer totally to the final customer in the abovementioned economic situation.

During the year´s second semester the first signs of an economic reactivation are starting to appear, due to an increase in the level of bookings, quotations and offers from clients with respect to the first semester of the year. TUBACEX foresees the continuation of the positive trend during year 2004.

At the same time, the implementation during the following years of the Competitiveness Plan already running - which has identified an important potential improvement in productivity of the Group´s main business units - will allow TUBACEX to answer with a differential competitive situation in terms of productivity and costs to the good perspectives of the tubes world demand, which will help to increase its operational margins.

EVOLUTION OF THE JANUARY-SEPTEMBER CONSOLIDATED RESULTS
	2003	2002	2003/2002
SALES	191,28	213,33	-10,3%
OPERATING RESULT (EBIT)	8,09	16,76	-51,7%
PROFIT BEFORE TAXES	5,77	13,12	-56,0%
PROFIT AFTER TAXES	3,33	11,64	-71,4%
NET CASH-FLOW	15,80	23,63	-33,1%
In millons of euros.

 

PRESS RELEASE

THE DECREASE IN DEMAND AND THE DOLAR WEAKNESS REDUCE TUBACEX FIRST SEMESTER RESULT

(Llodio, July 30th, 2003).-

The decrease in the level of activity and investment in the main sectors which demand the products produced by Tubacex - energy, petroleum and gas and petrochemical industry - the uncertain international economic situation - specially USA and Germany - and the impact of the dollar weakness against the euro in the main European exporters, have affected negatively the volumes and operating margins of the main companies of the sector.

As a result of all these external factors, TUBACEX, the world's second largest seamless stainless steel tube manufacturer, with a 22% consolidated world market share, has reduced it's consolidated sales which have reached 135.18 Million Euros, 8.3% lower than those in the first half of year 2002, which was 147.36 Million Euros.

Nevertheless, this decline in volumes is really lower than the one experienced by the seamless stainless steel tube sector. Concerning to this, an important data is the decrease in the import of these products in the United States corresponding to the first semester, 2003, near to 15% with regard to the first semester, 2002.

The consolidated operating profit reached 6.47 Million Euros, a 45.4% reduction as compared to the previous year, when a profit of 11.86 Million Euros was reached. Even in the previously commented circumstances, all the Group business units, individually considered, are structurally profitable in accordance with the year 2003 objectives.

Profit before taxes reached 5.22 Million Euros, 46.7% less than the figure of 9.80 Million Euros for the previous year.

Profit after taxes reached 3.20 Million Euros while in the previous year 8.74 Million Euros were reached, because of a higher fiscal burden due to the fact that fiscal credit operations carried out in the previous year were booked as assets.

Net cash flow, not affected by the above mentioned fact, was 12.49 Million Euros, 28.7% less than the previous year. This generation of funds added to the company low indebtedness level - the Group´s net debt over total shareholders equity and liabilities at the end of June was 23% - confirm the Group´s financial and net worth soundness.

TUBACEX Group is launching an ambitious plan to improve competitiveness and cost reduction in the main Group's units. The objective of this plan is to optimize the operative efficiency in the supply chain management, procurement of raw and auxiliary materials, production and portfolio of products in the Group's main business units: TTI, SBER and Aceralava.

This will help for sure the positioning of the Group in a competitive situation to increase decisively its operating profitability once the reactivation of the main economies takes place and therefore the recovery of our sector´s demand.

EVOLUTION OF CONSOLIDATED RESULTS JANUARY-JUNE
	2003	2002	2003/2002
SALES	135,18	147,36	-8,3%
OPERATING RESULT (EBIT)	6,47	11,86	-45,4%
PROFIT BEFORE TAXES	5,22	9,80	-46,7%
PROFIT AFTER TAXES	3,20	8,74	-63,4%
NET CASH-FLOW	12,49	17,51	-28,7%
In millons of euros.

PRESS RELEASE

TUBACEX WILL PAY OUT A 0.042 EURO DIVIDEND
PER SHARE ON THE 15TH OF JULY

(Llodio, June 25th, 2003).-

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, will pay out a 0.042 Euro gross dividend to its shareholders on the 15th of July corresponding to the year 2002 results of the Group.

The payment of this dividend, which will be done by the Santander Central Hispano bank, was approved by the Shareholders General Meeting held on the 27th of May.

TUBACEX will pay a total of 5.58 Million Euros as dividend, meaning a 34.2% payout of 2002’s net profit, i.e. 16.31 Million Euros.

Más información: FGP Comunicación
Fernando Gómez Pujana: 94 412 80 71 - 609 81 31 73 - fgpujana@telefonica.net

PRESS RELEASE

3.81 Million Euro (-11%) profit before tax

TUBACEX PROFIT LOWER DUE TO WORLD MARKET SITUATION

(Llodio, May 15th, 2003).-

TUBACEX, the world's second largest seamless stainless steel tube manufacturer, with a 22% consolidated world market share, has reduced it's profit for the first quarter of 2003, due to the bad market situation, because of the uncertain international economic situation.

This scenario has affected consolidated sales which have reached 70.06 Million Euros, 7.7% lower than those in the same period of year 2002, which was the year's best, reaching 75.92 Million Euros.

The consolidated operating profit reached 4.87 Million Euros, a 7.4% reduction as compared to the previous year, when a profit of 5.26 Million Euros was reached.

Profit before taxes reached 3.81 Million Euros, 11.4% less than the figure of 4.29 Million Euros for the previous year.

Profit after taxes reached 2.42 Million Euros between January and March, 37.4% lower than the previous year, because of a higher fiscal burden due to the fact that fiscal credit operations carried out in the previous year, were booked as assets.

Net cash flow, not affected by the above mentioned fact, was 7.39 Million Euros, 11.6% less than the previous year, when 8.36 Million Euros were reached.

TUBACEX considers that should the uncertain situation affecting the world economic scenario disappear, the investment projects that have been slowed down during the last months, may be relaunched, especially in the oil, petrochemical, chemical and energy sectors, which are the main consumers for the products manufactured by our Group.

At the same time, TUBACEX has launched in 2003 a plan to improve competitivity and cost reduction in all the Group's units with the objective of increasing the operating margins.

PRESS RELEASE

TUBACEX WILL PUT FORWARD A PROPOSAL TO ELIMINATE "PROTECTION" MEASURES FROM ITS STATUTES IN THE NEXT SHAREHOLDERS MEETING

(Llodio, May 13th, 2003).-

TUBACEX, the world's second most important seamless stainless steel tube manufacturer, will put forward a proposal to eliminate limitations to shareholders voting rights and some incompatibilities in order to become a member of the Board of Directors, as stated at the present in the Company Regulations.

With this measure TUBACEX aims to guarantee shareholders equal rights and reinforce their control regarding certain decisions of special relevance for the company, eliminating the so-called "protection measures".

TUBACEX, one of the firms to comply with the Code of Good Governance, also aims to incorporate the recommendations included in the "Comisión Especial para el fomento de la transparencia y seguridad de los mercados y en las sociedades cotizadas" (the Special Committee for promotion of transparency and security of financial markets and of companies operating on the stock exchange), better known as the "Aldama Report".

The present TUBACEX Company Regulations, in article 13, state that no shareholder is allowed to represent more than 5% of the total number of possible votes in each General Shareholders Meeting, independently of the number of shares owned. The text put forward for approval, states that "in the Shareholders Meetings each share gives the right to one vote and agreements will be taken according to the majority of votes, the Chairman's vote not being decisive".

It is also proposed to eliminate the specific incompatibility that at present does not allow juridical persons or entities without a juridical personality and whose activity is similar to the one of TUBACEX, to become members of the Board of Directors.

PRESS RELEASE

NET PROFIT INCREASED 5.18% IN 2002 REACHING
16.30 MILLION EUROS

(Llodio, February 26th, 2003).-

TUBACEX, the world´s second most important seamless stainless steel tube manufacturer, reached a consolidated net profit of 16.30 Million Euros, according to information given by the company to the Spanish National Stock Exchange.

This means a growth of 5.18% above consolidated net profit registered in 2001, which reached 15.50 Million Euros.

Consolidated operative result (EBIT) reached 17.21 Million Euros, 9.52% above the previous year´s figure. Generated net cash-flow grew by 7.04% reaching 32.68 Million Euros against the 30.55 Million Euro mark obtained in 2001.

On the other hand, consolidated sales reached 282.68 Million Euros, 1.4% below the previous years´ figure.

The TUBACEX Group registered a 26 Million Euro taxable profit at the close of the 2002 trading year, through application of the Instituto de Contabilidad y Auditoría de Cuentas (Accounting and Audit Institute) resolution of March 15th, that corresponds to tax credits for compensation of negative taxable invoicing and anticipated taxes with fully guaranteed future recovery. TUBACEX, applying maximum caution, assigned these tax profits to compensate the Group´s US company, Altx, whose activity was interrupted last November.

Accounting for tax profit and compensations of the Altx assets has not influenced the 2002 trading year operative results (EBIT) -which grew 9.52%- nor has it affected its comparison with the corresponding 2001 trading year figure.

TUBACEX considers these results positive, more so when they have been obtained in a difficult market situation, so allowing to continue with shareholder payback initiated in the past.

PRESS RELEASE

ACERÍA DE ALAVA, A SUBSIDIARY OF TUBACEX, OBTAINS THE ISO 14001 CERTIFICATE THROUGH ITS ENVIRONMENTAL MANAGEMENT POLICY

(Amurrio, November 25th, 2002).-

Acería de Alava S.A., a subsidiary of the TUBACEX Group, manufacturer of stainless steel in the first stage, obtained the ISO 14001 Environmental Management Certificate from the Asociación Española para la Normalización y Certificación, the Spanish National Association for Standardization and Certificates (AENOR), which covers all activities carried out in the plant situated in Amurrio, Álava, Spain.

This Environmental Management Certificate covers the whole production process at the TUBACEX Group Llodio and Amurrio plants, from reception of raw materials and manufacture of stainless steel at Acerálava to shipment of finished tubes manufactured at Tubacex Tubos Inoxidables (TTI).

In order to obtain this certificate, which completes the Environmental Management System implementation process at this subsidiary, it was necessary to systematize all activities related with the environment, implicate staff in an active manner that needed a broad training programme over these last few years, as well as important investment, all together reducing environmental risks in the company’s activity.

The complexity of the Acerálava production process required an important effort to be made that included all the plants activities, from raw material control, product storage, smoke emission and air quality controls, water treatment, inert residue management and recycling and finished product loading and transportation controls.

One of the strategic priorities TUBACEX assumed, was to carry out its activities respecting the environment, so intending to establish systems whereby environmental impact is reduced to the minimum in all the Groups product lines due to its industrial activity, through the use of clean and economically viable technologies as well as establishing necessary means to prevent contamination in all operational situations, including emergency ones.

Acería de Alava manufactures stainless steel in the first stage with the objective of being the raw material supplier to other tube manufacturers within the Group (TTI, SBER y Altx). The firm operates actively on overseas markets manufacturing forged and rolled stainless steel square and round bar for other consumers of this same product, fundamentally in the forging and machining sectors.

PRESS RELEASE

TUBACEX RESTRUCTURES ITS MANUFACTURING PLANTS

*Group discontinues production at Altx, one of its US factories

*The Group's consolidated profit forecasts for this year remain unchanged

(Llodio, 27 November 2002).-

In view of the way in which the stainless steel tubing market is evolving and bearing in mind the fall in manufacturing activity in the United States, TUBACEX has decided to restructure the production in its plants approving the indefinite suspension of the operations at the plant of its subsidiary, Altx Inc, in Albany, the capital of New York State and moving the production to its centers in Greenville (Pennsylvania), Llodio (Spain) and Ternitz (Austria), according to a statement issued by the company to the Securities and Exchange Commission (CNMV) and following today's Board of Directors meeting.

This decision has been taken because, after three years from its acquisition, Altx has not reached its initial industrial and business targets. The decision is in line with the strategic principle of structural competitiveness and profitability in all Group business units and is, at the same time, a continuation of the flexibility policies that ensure the Group's production capacities and cost structures can be adapted at all times to the market situation.

The decision has been made at a time when the North American market is experiencing difficulties and domestic demand is suffering a slowdown.

As a result of the Boards decision, around 6% of the Group's workforce will be reduced. The restructuring process of this North American subsidiary is scheduled for completion by the end of December 2002.

The decision does not affect the Group's other plant in the US, which in spite of the adverse market situation, will post good results for the year, continuing with the company's positive development since it was taken over in 1995.

Ongoing commercial operations and the market supplied by Altx will now be handled by the Group's plants in America and Europe and, as a result, today's decision will not impact on the company's market share, currently standing at 22%.

TUBACEX is now the leading exporter of seamless stainless steel tubing to the North American market.

Consolidated net profit forecast remains unchanged for 2002

TUBACEX is maintaining its original consolidated results forecast for 2002. Net profits will be up on 2001, in line with quarterly results for the year. Up to September of this year TUBACEX had made a net profit of 11.64 million euro, 5.3% up on the previous year.

In continuing to pursue conservative accounting policies, the Group will apply the resolution approved by the Institute of Accounting and Auditing on 15 March 2002 and will set aside tax profits in recognition that deferred taxes have to be accounted for at the end of year 2002 in order to cover its investments in Altx, in accordance with International Accounting Standards (IAS) accounting principles. These profits come from the carry forward of unused tax losses and unused tax credits, the future recovery of which is completely assured.

TUBACEX Board of Directors believes that the decision taken will help guarantee and optimise the Group's future profitability levels and will further strengthen the company pledge to continue implementing consistent and sustainable dividend policies for its shareholders.

PRESS RELEASE

TUBACEX SIGNS AN AGREEMENT WITH ALL THE TRADE UNIONS TO APPLY THE CONTRACT OF RELIEF IN TTI AND ACERALAVA

(Llodio, November 7th, 2002).-

The management of Tubacex Tubos Inoxidables S.A. and Acería de Alava S.A. and all the trade unions with representation have signed an agreement for the application of the contract of relief in both companies of the Tubacex Group, that at the moment and altogether have more than 670 employees.

Due to this agreement - that will be active between 2003 and 2005 - a group of 95 employees will be eligible during these three years, and will be able to become partly retired at the age of 60. The subscribed agreement contemplates the possibility of becoming extensive after 2005.

Tubacex Group management believes this agreement to be very positive, since it falls within the Group's competitive and profit improvement programmes, contributing to suitable sizing of the Group's headcount, improving productive structures and adaptation to immediate technological challenges.

On the other hand, the subscribed agreement is a reply to social demands and an important advance in management improvement and plans to design the future organisation in both companies in fundamental aspects such as rejuvenation, training and improvements regarding professional qualifications.