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United Steel Company (SULB) Awards Civil Integration Package To Nass Contracting For Its $1.2 Billion Integrated Steel Complex

MANAMA, June 6, 2011 - United Steel Company ("SULB") BSC (c), a joint venture between Bahrain-based Gulf United Steel Holding Company (" Foulath ") BSC (c), the Middle East's leading steel investment vehicle and holding company (owning 51 percent of SULB), and Japan's Yamato Kogyo Co., Ltd, a leading global steel section producer (owning 49 percent of SULB), today announced that it has awarded Nass Contracting WLL ("Nass") with the Civil Integration Package for its $1.2 billion integrated steel project in the Kingdom of Bahrain. The SULB integrated steel plant is comprised of a Direct Reduced Iron Plant (DRI Plant) with nameplate capacity of 1.5 million tons per year (mtpy) and design capacity of 1.8 mtpy, a Melt Shop (MS) with nameplate capacity of 0.80 mtpy and design capacity of 1.2 mtpy, and a Heavy Section Rolling Mill (HSM) with nameplate capacity 0.60 mtpy and design capacity of 1.0 mtpy. SULB will be the Middle East's first fully integrated medium and heavy beams and structural steel sections producer and is expected to replace approximately 20 percent of the annual 4 million ton imports of these products into the region once fully operational in second half of 2012.

Nass Contracting is a leading Bahrain-based building and civil engineering contractor and the works included in the package encompass the construction of roads and pavements, lighting, storm water drainage, sewage treatment and potable water systems, gates/weigh bridges and non-process buildings for the SULB integrated steel plant, which is under construction on Foulath 's existing 1.3 million square meter state-of-the-art steel production complex located in Bahrain's Hidd Industrial Area. Foulath steel complex in Bahrain also consists of Gulf Industrial Investment Company's (GIIC) pelletizing plants and United Stainless Steel Company's (USCO) cold rolled stainless steel mill, both wholly owned subsidiaries of Foulath , which together with SULB, allow the company to operate across the entire steel value chain from iron ore to final product.

Representing the two parties at a signing ceremony, held at the Ritz Carlton Hotel in Bahrain, were Mr. Khalid Al-Qadeeri, Chairman & Managing Director of SULB, Mr. Hiroyuki Inoue, President of Yamato Steel Co. Ltd., Mr. Abdulla Ahmed Nass, Chairman of Nass, Mr. Sameer Abdulla Nass, Managing Director of Nass and Mr. David Anthony, General Manager of Nass.

Commenting on the award, Mr. Khalid Al-Qadeeri, Chairman & Managing Director of SULB, said: "We are pleased to announce another major development in the implementation of the prestigious SULB project, which is being developed by world-class engineering and construction companies. Nass has a strong track record of work with some of the region's largest industrial projects and we welcome them on board. Having launched the project in July 2010, work is well underway and we are on schedule to begin commercial operations by the second half of 2012. This is a ground breaking project for the Middle East's steel industry and for Foulath , which aims to create the world's first fully integrated steel production facility with manufacturing capability extending from iron ore pelletizing to final steel products, which will not only be of the highest standard and quality, but also the most competitive in terms of cost."

Nass is expected to begin execution of the contract on August 1, 2011.

In concluding the ceremony, Mr. Al-Qadeeri thanked the Government of the Kingdom of Bahrain headed by His Majesty, the King, Hamad bin Isa Al Khalifa, HRH Prince Khalifa bin Salman Al Khalifa, the Prime Minister and HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince for their continued support for Foulath and its investee companies in the Kingdom. He further expressed his appreciation for Bahrain's government officials and in particular the Ministry of Industry & Commerce headed by H.E. the Minister, Dr. Hassan Fakhro, which continues to make Bahrain a business friendly environment for investors and projects of regional significance such as SULB.

Not only will SULB help to lessen regional imports requirements for medium and heavy steel sections into the Middle East markets, the plant will also make a significant socio-economic contribution to the Kingdom of Bahrain, where it expects to employ approximately 1000 people, with a target of 70% Bahraini nationals.

-Ends-

Values and terms for the contracts awarded are confidential.

About SULB
United Steel Company ("SULB") BSC (c) is a joint venture between Bahrain-based Gulf United Steel Holding Company (" Foulath "), the Middle East's leading steel investment and holding company, and Yamato Kogyo Co., Ltd of Japan, a leading global steel section producer. Foulath and Yamato Kogyo own 51 percent and 49 percent of SULB, respectively.

About Nass Contracting WLL
Established in 1963 by Abdulla Ahmed Nass, Nass Contracting , a Division of Nass Corporation, has a comprehensive performance history and undertakes a wide range of construction projects for both the public and private sectors and has made a major contribution to the development of Bahrain's commercial and industrial infrastructure. Nass Corporation is a public Joint Stock established in September 2005.

Media Contacts:
Zahraa Taher
FinMark Communications
T: +973 770 22 550 / M: +973 39630997

Laila Danesh
FinMark Communications
T: +44 (0) 20 7887 7869 / M: +44 770 333 0024

© Press Release 2011

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