Ispat International N.V., (NYSE: IST US; AEX: IST NA), today reported a record net income of $460 million or $3.91 per share for the third quarter of 2004 as compared to a net loss of $10 million or negative $0.08 per share for the third quarter of 2003. In the second quarter of 2004, the net income was $325 million or $2.75 per share.

Consolidated sales and operating income for the third quarter were $2.5 billion and $659 million, respectively, as compared to $1.3 billion and $4.0 million loss, respectively, for the third quarter of 2003; and $2.1 billion and $426 million respectively for the second quarter of 2004.

Total steel shipments were approximately 4.1 million tons 1 , which represented an increase of approximately 15% over the third quarter of 2003 and an increase of approximately 1% over the second quarter of 2004.

For the nine-month period January–September 2004, Ispat International N.V.’s net income was $887 million or $7.51 per share as compared to net income of $55 million or $0.44 per share for the nine-month period January-September 2003.

Consolidated sales and operating income for the nine month period January-September 2004 were $6.3 billion and $1.2 billion respectively, compared to $4.0 billion and $129 million respectively for the nine-month period January-September 2003.

Total steel shipments for the nine-month period January-September 2004 were 12.4 million tons, compared to 11.4 million tons for the nine-month period January-September 2003.

The improved earnings were primarily due to strong demand and prices for our products across all markets. Our average price realization in the third quarter 2004 improved by 61% compared to the third quarter of 2003 and by 11% compared to the second quarter of 2004, driven by higher base selling prices, raw material surcharges and improved product mix. For the nine-month period January-September 2004, average price realization was 40% higher than the corresponding period of 2003.

The situation with respect to availability and prices of key raw materials such as iron ore, scrap, coke and natural gas continued to remain challenging. Overall, cost of sales per ton during the quarter was higher by 20% as compared to the third quarter of 2003 and by 4% compared to the second quarter of 2004. Cost of sales per ton during the nine-month period January-September

2004 was higher by 20% compared to the corresponding period of 2003.

There were no material unusual or one-time items during the quarter. Selling, general and administrative expenses were higher due to higher costs and increased shipments.

1 The term "ton" means a short ton (ST). One short ton is equal to 2,000 pounds.



ISPAT INTERNATIONAL TO ACQUIRE LNM HOLDINGS

TO FORM MITTAL STEEL COMPANY

INTERNATIONAL STEEL GROUP TO MERGE WITH MITTAL STEEL

FOR CASH AND STOCK

Mittal Steel Will Be The World’s Largest Steel Company, With Pro Forma Revenues In 2004 of $30 Billion and Annual Production Capacity of 70 Million Tons --

Rotterdam, The Netherlands, and Richfield, Ohio, October 25, 2004 – Ispat International N.V. [NYSE and Euronext Amsterdam: IST] today announced that it has agreed to acquire LNM Holdings N.V. Following completion of the transaction, the company will be renamed Mittal Steel Company N.V. Simultaneously, Ispat International and International Steel Group Inc. [NYSE: ISG] announced today that their Boards of Directors have unanimously approved a definitive agreement under which Ispat International and ISG will merge. The combined Mittal Steel will be the largest and most global steel company in the world and will be listed on the New York Stock Exchange and Euronext Amsterdam.