Significant Events after the Reporting Date

Below we refer to two material transactions that occurred after the end of the financial year.

Shareholdings

On January 20, 2005, Salzgitter AG and Vallourec S.A. signed a non-binding Memorandum of Understanding for restructuring their seamless pipes operations. The Declaration of Intent provides for the sale of the 45% shareholding in V&M Tubes S.A. (V&M) previously held by Mannesmannröhren-Werke GmbH (MRW) to the French joint venture partner Vallourec S.A. at a purchase price of € 545 million.

With the full amalgamation of the V&M shares in Vallourec's ownership, the negotiating parties aim to streamline the at present highly complex corporate legal structure, as well as the decisionmaking processes within the Vallourec Group. This will enable the company to react more directly and efficiently to future challenges posed by global competition.

Salzgitter AG, which currently holds around 23% of the Vallourec stock, intends to remain a major shareholder in Vallourec, thereby participating in a planned increase in capital on a pro rata basis.

As part of this transaction, MRW will increase its current 20 % stake in the steel producer Hüttenwerke Krupp Mannesmann GmbH (HKM) in Duisburg to 30% by purchasing 10% of the HKM shares held by V&M. In this way, the Salzgitter Group will strengthen its position within this important German steel producer.

At the moment the final contracts are being negotiated and the applications to the competent antitrust authorities are being prepared. The transaction is scheduled for completion no later than July 31, 2005.

The revenue from the sale of the V&M shares will significantly enhance Salzgitter AG's financial scope for the strategic development of the Group.

Shareholder Structure

Norddeutsche Landesbank/Girozentrale, once the largest shareholder Salzgitter AG, after the secondary public offering in 1998, fell below the threshold of 5% of the voting shares on January 18, 2005. The remaining 4.96% of the shares will, according to the disclosure in the Börsen-Zeitung on January 26, 2005, henceforth be classified as free float in compliance with the relevant definitions of Deutsche Börse AG.

Over the past few years, NORD/LB had already reduced its shareholding in a manner that minimized the impact on the market and the stock price. Following this step, the percentage of Salzgitter shares in free float came to 74.7% in January. The federal state of Lower Saxony holds 25.3% of the shares.