CONSOLIDATED FINANCIAL & OTHER INFORMATION AS PER U.S. GAAP
 
                                       For the Fourth         For the Year
                                       Quarter Ended            Ended
                                        December 31,          December 31,
 
    In millions of U.S. Dollars,
     except share, per share and
     other data
                                       2002       2001        2002      2001
                                   (Unaudited) (Unaudited)(Unaudited)(Audited)
 
    Statement of Income
     Data
    Sales                             $1,325     $1,075      $4,889     $4,486
    Costs and expenses:
     Cost of sales(1)
     (exclusive of depreciation
      shown separately)                1,147      1,032       4,356      4,273
     Depreciation                         45         44         177        177
     Selling, general and
      administrative expenses             42         44         152        155
     Other operating expenses(2)          62         23          62         75
                                       1,296      1,143       4,747      4,680
    Operating income (loss)               29        (68)        142      (194)
    Operating margin                     2.2%     (6.3%)        2.9%    (4.3%)
    Other income (expense)-net (3)         6        20           14        13
    Financing costs:
     Interest (expense)                  (44)       (68)       (208)     (242)
     Interest income                       2          1           5        14
     Net gain (loss) from foreign exchange 5         (7)          2        (9)
                                         (37)       (74)       (180)     (237)
    Income (loss) before taxes            (2)      (122)        (24)     (418)
    Income tax expense (benefit):
     Current                               2         (2)         18          8
     Deferred                            (55)       (34)        (72)     (114)
                                         (53)       (36)        (54)     (106)
    Net income (loss) before
     extraordinary income                 51        (86)         30      (312)
     Gain on repurchase of debt,
      net of tax                          --         --          19         --
    Net income (loss)                     51        (86)         49      (312)
    Basic and diluted earnings
     per common share                   0.42      (0.71)        0.40    (2.58)
    Weighted average common shares
     outstanding (in millions)           124        121          124      121
 
    Other Data
    Total shipments of steel products
     (thousands of tons)(4)            3,744      3,219       15,037    14,118
 
      (1) Includes $18 towards workforce restructuring provision during the
          fourth quarter 2001 and in addition includes $28 towards slab
          reheating furnace startup cost and credit of $8 towards settlement
          of lawsuit earlier during 2001.
      (2) Includes provision of $19 with respect to a scrap supply contract,
          $17 towards closure of Irish Ispat Limited, $17 write down in value
          of certain e-commerce software and $22 impairment loss on ocean
          going vessels during 2001. For the fourth quarter of 2001, includes
          provision of $1 with respect to a scrap supply contract and $22
          impairment loss on ocean going vessels.  For the fourth quarter and
          year 2002, includes $39 towards write-off of Empire mine investments
          and $23 towards impairment loss of 2A Bloomer and 21" Bar mill.
      (3) Includes $19 write-off of e-commerce investments in 2001. For the
          fourth quarter and year 2002, includes $7 towards gain on sale of
          assets by pipe making subsidiary in Mexico.
      (4) Total shipments include inter-company shipments.
 
 
     Note: Certain regroupings have been made to the prior period's financial
           statements in order to conform to 2002 groupings.
 
                 CONSOLIDATED BALANCE SHEETS UNDER U.S. GAAP
 
                                                       As at
                                        December 31,         December 31,
    In millions of U.S. Dollars            2002                  2001
                                        (Unaudited)            (Audited)
    ASSETS
    Current Assets
      Cash and cash equivalents,
       including short term investments       77                    85
      Trade accounts receivable - net        529                   451
      Inventories                            873                   805
      Prepaid expenses and other              95                    65
      Deferred tax assets                     38                    37
      Total Current Assets                 1,612                 1,443
 
    Property, plant and equipment - net    3,035                 3,109
    Investments in affiliates and
     Joint Ventures                          257                   299
    Deferred tax assets                      438                   273
    Intangible pension assets                 84                    83
    Other assets                              86                   106
    Total Assets                           5,512                 5,313
 
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities
     Payable to banks                        137                   158
     Current portion of long term debt       125                   180
     Trade accounts payable                  607                   540
     Accrued expenses and other
      current liabilities                    377                   303
     Deferred tax liabilities                 28                    28
     Total Current Liabilities
                                           1,274                 1,209
 
    Long term debt                         2,022                 2,041
    Deferred tax liabilities                  69                   134
    Deferred employee benefits             1,881                 1,493
    Other long term obligations
                                             138                    98
    Total Liabilities                      5,384                 4,975
    Shareholders' equity
     Common shares                             7                     7
     Additional paid-up capital              484                   480
     Retained earnings                       141                    92
     Cumulative other comprehensive income  (504)                 (241)
    Total Shareholders' equity               128                   338
    Total Liabilities and Shareholders'
     Equity                                5,512                 5,313
 
            CONSOLIDATED STATEMENTS OF CASH FLOWS AS PER U.S. GAAP
 
                                        For the Fourth       For the Year
                                         Quarter Ended           Ended
                                          December 31,       December 31,
 
    In millions of U.S. Dollars         2002       2001      2002     2001
                                   (Unaudited)(Unaudited) (Unaudited)(Audited)
 
    Operating activities:
    Net income                           $51        $(86)     $49       $(312)
    Adjustments required to
     reconcile net income to net cash
     provided from operations:
      Depreciation                        45          44      177         177
      Deferred employee benefit costs      1          (7)     (52)       (106)
      Net foreign exchange loss (gain)    (5)          6      (23)          9
      Deferred income tax                (53)        (36)     (61)       (114)
      Undistributed earnings from joint
       ventures(1)                         1          13       --          12
      Other operating expenses(2)         62          22       62          56
      Other                                3           4       (2)          2
    Changes in operating assets and
     liabilities, net of effects
     from purchases of subsidiaries:
      Trade accounts receivable           13          39      (64)        114
      Short-term investments              --          20       --          78
      Inventories                        (57)         33      (37)        169
      Prepaid expenses and other         (64)         --      (31)         24
      Trade accounts payable              27          (4)      45         (81)
      Accrued expenses and other
       liabilities                        40         (19)     105          12
    Net cash provided (used) by
     operating activities                 64          29      168          40
    Investing activities:
      Purchase of property, plant
       and equipment                     (39)        (30)    (108)        (97)
      Proceeds from sale of assets
       and investments including
       affiliates and joint ventures       4          18       18          37
      Investments in affiliates and
       joint ventures                     11         (10)      11           8
      Other                               (3)         (6)      (1)          4
    Net cash provided (used) by
     investing activities                (27)        (28)     (80)        (48)
    Financing activities:
     Proceeds from payable to banks      700         634    2,359       2,416
     Proceeds from long-term debt          7          --      125         125
     Payments of payable to banks       (718)       (618)  (2,346)     (2,418)
     Payments of long-term debt          (58)        (78)    (243)       (250)
     Purchase of treasury stock           (1)         --       (1)         (1)
     Sale of treasury stock                2           4        5           5
    Net cash provided (used) by
     financing activities                (68)        (58)    (101)       (123)
    Net increase (decrease) in
     cash and cash equivalents           (31)        (57)     (13)       (131)
    Effect of exchange rate
     changes on cash                      (3)         (9)       5           2
    Cash and cash equivalent:
     At the beginning of the period       111         151      85         214
     At the end of the period              77          85      77          85
 
     (1)Includes $19 write-off of e-commerce investments during 2001.
 
     (2)Includes $17 towards closure of Irish Ispat Limited, $17 write down in
        value of certain e-commerce software, and $22 impairment loss on ocean
        going vessels during 2001. For the fourth quarter of 2001, includes
        $22 impairment loss on ocean going vessels. For the fourth quarter and
        year 2002, includes $39 towards write-off of Empire mine investments
        and $23 towards impairment loss of 2A Bloomer and 21" Bar mill.
 
          Analysis of Results of Operations and Financial Condition

This is not Management Discussion and Analysis (MD&A). The MD&A, as an annual document will be filed as part of the Company's annual report (Form 20F) under Item 5 -- Operating and Financial Review and Prospects.

The summary consolidated financial and other information, including the accounts of Ispat International N.V. and all its majority owned subsidiaries have been prepared in accordance with U.S. GAAP. The consolidated financial statements and other information for 2001 include results of Irish Ispat Limited for the first three months(1). All material inter-company balances and transactions have been eliminated. Total shipments of steel products include inter-company shipments.

The term 'ton' as discussed herein refers to short ton and the term 'tonne' used herein refers to metric tonne. All references to iron ore pellets, direct reduced iron ('DRI') and scrap are in tonnes, and all references to steel products are in tons. The term 'steel products' as used herein refers to semi-finished and finished steel products and excludes DRI.

All references to 'Ispat International' are to 'Ispat International N.V.'; to 'Ispat Inland' are to Ispat Inland Inc.; to 'Imexsa' or 'Ispat Mexicana' are to Ispat Mexicana, S.A. de C.V.; to 'Ispat Sidbec' are to Ispat Sidbec Inc.; to 'Caribbean Ispat' are to Caribbean Ispat Limited; to 'Ispat Europe Group' are collectively to Ispat Hamburger Stahlwerke GmbH ('IHSW'), Ispat Stahlwerk Ruhrort GmbH ('ISRG'), Ispat Walzdraht Hochfeld GmbH ('IWHG'), Ispat Unimetal S.A., Trefileurope and SMR.

All references to 'Sales' include freight and handling costs and fees as per EITF Issue No. 00-10. All references to 'Net Sales' exclude freight and handling costs and fees.

Fourth Quarter 2002 Compared with Fourth Quarter 2001

    Results of Operations

Revenue:

Sales increased by 23% from $1,075 million in the fourth quarter of 2001 to $1,325 million in 2002.

The Company uses Net Sales(2) numbers for managing its business. All the analyses presented here onwards are based on Net Sales numbers.

Total steel shipments increased by 16% to 3.7 million tons from 3.2 million tons. Net Sales went up during the same period from $1,027 million to $1,259 million, an increase of 23%.

Ispat Mexicana, Ispat Sidbec and Caribbean Ispat continued to achieve significant improvements in both volume and selling prices. At Ispat Inland, shipments were marginally lower but selling prices were significantly higher. At Ispat Europe, steel shipments and average selling prices in Euro were marginally higher. Further, the appreciation of Euro against the US Dollar by 12% contributed to increase in Net Sales.

(1) On 15th June 2001, the Company announced the shutdown of its steel making operations in Ireland and the calling of a creditors' meeting for the appointment of a liquidator. Consequently, beginning in the Second Quarter of 2001, the results of Irish Ispat Limited have not been consolidated.

(2) The Company believes that Net Sales numbers based on net realizations from sales transactions more truly reflects sales performance. The application of EITF Issue No. 00-10 does not affect earnings, as it only involves inclusion of shipping and handling fees in sales and cost of sales.

    The following table gives a summary of key sales numbers:
 
 
    Subsidiary           Net Sales(3)                    Changes in
                     Q4 2002    Q4 2001    Net Sales    Shipment   Selling
                                                                    Price
                   $ Million  $ Million        %            %            %
    Ispat Inland        566        529         7           (2)          10
    Ispat Mexicana      190         73       161           98           38
    Ispat Sidbec        141        109        29           15           13
    Caribbean Ispat
     -Steel              55         34        62           53           6
    Caribbean Ispat
     -DRI                31         34        (9)         (22)         17
    Ispat Europe Group  303        260        17            3          3*
 
    * For Ispat Europe Group Change in Net Selling Price are shown in Euro
 

 (3) Net Sales numbers are standalone numbers for certain operating subsidiaries and include inter-company shipments.

At Ispat Inland, the 10% increase in selling prices was primarily due to an improvement in the spot market prices and in certain contract sales which were negotiated in the fourth quarter of 2002 as well as better product mix. Lower shipments at Ispat Inland reflect lower bar sales related to idling of part of company's bar production facilities (2A Bloomer and 21" Bar Mill) during the whole of 2002.

At Ispat Mexicana, shipments increased by 98% in spite of loss of production in the fourth quarter of 2002. This loss of production was caused by Natural Gas supply disruption following an explosion at the supplier's premises. Additionally, there was a 38% increase in selling prices primarily due to improved market conditions for slabs, mainly in the U.S. market, helped in part by the favorable Section 201 trade ruling.

At Ispat Sidbec, the 15% increase in shipments and 13% increase in selling prices were primarily due to general improvement in North American market environment following the Section 201 ruling in the United States.

At Caribbean Ispat, steel shipments in the fourth quarter of 2002 were higher relative to corresponding quarter of 2001. This, however, was due to the fact that shipments in the fourth quarter of 2001 were impacted by caster project implementation. DRI shipments were lower due to higher captive consumption and non availability of ships due to strike in Venezuela. This impact was offset in part by higher selling prices primarily due to better market conditions.

At Ispat Europe, there were marginal increases in both selling prices in Euro and volumes. Further, the appreciation of Euro against the US Dollar by 12% contributed to increase in Net Sales

Cost:

The Company continued to be negatively impacted by increases in the prices of key inputs such as raw material and energy. However, these cost increases were partly mitigated by our ongoing cost saving efforts.

At Ispat Inland, costs were lower excluding the negative impact of $62 million from two one-time items as discussed later. This was due to the benefits of ongoing cost saving efforts offset in part by increased scrap prices.

At Ispat Mexicana, costs were marginally lower due to increased production offset in part by higher metallic prices and higher energy costs.

At Ispat Sidbec, cost increased primarily due to increased cost of metallic inputs offset in part by better raw material input mix and ongoing focused cost reduction effort.

At Caribbean Ispat, cost of steel decreased primarily due to increased production as against the comparative period. DRI cost decreased mainly due to better ore mix offset in part by higher energy costs.

At Ispat Europe, costs continued to be negatively impacted by increases in the prices of key inputs such as metallics and energy. Other increases include wage increases as per collective agreement. These cost increases were partly mitigated by ongoing cost saving efforts.

Selling, General and Administration (SG&A) expenses remained flat during the quarter.

Gross Profit and Operating Income:

The Company's financial performance improved in both Gross Profit (Sales less Cost of Sales, exclusive of depreciation) and Operating Income as a result of improvements in sales volume and prices as well as benefits of our continuous cost reduction efforts, offset in part by increases in raw material and energy costs as discussed above. Gross Profit increased significantly by 314% from $43 million in the fourth quarter of 2001 to $178 million in 2002. There was an operating income of $29 million (after write down of one-time items) as compared with operating loss of $68 million.

The Gross Profit Margin (Gross Profit as a % of Net Sales) improved from 4.2% to 14.1%, mainly due to improvements at the North American subsidiaries. The Operating Margin (Operating Profit as a % of Net Sales) was positive at 2.2% as compared with negative of 6.3% in 2001.

The comparative numbers of Gross Profit Margin at the Company's operating subsidiaries were as follows:

    Subsidiary                                          Gross Profit Margin
                                                                (%)
                                                     Q4 2002        Q4 2001
    Ispat Inland                                        13.8            1.8
    Ispat Mexicana                                      19.0         (13.6)
    Ispat Sidbec                                        17.1           15.1
    Caribbean Ispat                                     15.3          (1.0)
    Ispat Europe Group                                  10.6           11.0

Comparative numbers of Operating Profit and Operating Margin at the Company's operating subsidiaries were as follows:

    Subsidiary                    Operating Profit           Operating Margin
                                    $ Million                      (%)
                                 2002         2001           2002         2001
    Ispat Inland                 (16)*        (25)**        (2.8)        (4.7)
    Ispat Mexicana                27          (17)          14.3        (23.9)
    Ispat Sidbec                  16            2           11.1          1.7
    Caribbean Ispat                7           (7)           7.2        (10.0)
    Ispat Europe Group             8            8            2.4          3.3
 
     *  After write down of $62 million towards Empire Mine and 2A Bloomer and
        21" Bar Mill
     ** After including $18 million towards workforce restructuring provision.

Financing Costs:

Net Interest expense (Interest expenses less interest income) was $42 million compared to $67 million. The decrease in interest expense was primarily due to the following reasons:

    (i)   Interest expense in fourth quarter of 2001 was higher due to
          inclusion of non cash expenses of $15 million in accordance with
          SFAS No. 133, from marking to market value, in an interest hedge
          contract,
 
    (ii)  Savings in interest cost on floating rate debt due to a fall in
          LIBOR, and
 
    (iii) Reduction of debt.
 
    One-time items: (Expense) Income
 
     Item Description                        Q4 2002    Q4 2001     Included
                                                                       in
 
     Workforce restructuring provision                    (18)   Cost of sales
     Provision for arbitration related
      to scrap supply contract                             (1) Other operating
                                                                    expenses
     Impairment loss on ocean going
      vessel                                              (22) Other operating
                                                                    expenses
    Write down in investments of
     Empire Mine                                (39)           Other operating
                                                                    expenses
    Write down of 2A Bloomer
     and 21" Bar Mill                           (23)           Other operating
                                                                    expenses
    Gain on sale of assets by pipe making
     subsidiary in Mexico                        7              Other Income /
                                                                    Expense

During the fourth quarter of 2002, the Company recognized impairment of its idled 2A Bloomer and 21" Bar Mill at Ispat Inland, resulting in an asset write-off of $23 million, following the Company's assessment that these facilities, which were idled in the fourth quarter of 2001, were unlikely to be restarted.

Ispat Inland also recognized the write-off of the assets associated with the Empire Mine following the sale, effective December 31, 2002, of 47.5% of its 40% interest in the mine to Cleveland Cliffs.

At Ispat Mexicana, the company recorded a gain of $7 million arising from the sale of assets of its pipe making subsidiary.

Income Tax:

The Company recorded a current tax expense of $2 million (benefit of $2 million in the fourth quarter of 2001) and deferred tax benefit of $55 million in 2002 (benefit of $34 million in 2001). The deferred tax benefit was primarily due to the exchange loss on dollar denominated net monetary liabilities arising from depreciation of the currency during the year at Mexico.

Net Income:

There was a net income of $51 million in the fourth quarter of 2002 compared to a net loss of $86 million in the fourth quarter of 2001 due to the reasons discussed above.

Financial Condition

During the fourth quarter working capital increased by $40 million, primarily due to higher inventories attributed primarily to higher level of operations and sales.

Capital expenditure during the fourth quarter of 2002 was $39 million compared to $30 million in 2001.

As at December 31, 2002 the Company's cash and cash equivalents were $77 million ($85 million at December 31, 2001). In addition, the Company's operating subsidiaries had available borrowing capacity under their various credit lines, including receivable factoring and securitization facilities, of $308 million ($354 million at 31st December, 2001). The following table gives the details of working capital credit facilities at various units:

    Subsidiary             Limit          Utilization          Availability(4)
    ($ Millions)   Dec-2002  Dec-2001   Dec-2002  Dec-2001  Dec-2002  Dec-2001
    Ispat Inland      294        305        234      202       60       103
    Ispat Sidbec      111        105         13       13       98        92
    Caribbean Ispat    57         81         57       81       --        --
    Ispat Europe       66         87         41       31       25        56
 
     (4) Corresponding exercisable limits are lower, which are based on the
         level of inventory/receivable.

In addition to the credit facilities listed above, certain of the Company's European subsidiaries were parties to Receivable factoring and securitization facilities as per the following details:

    Subsidiary         Limit           Utilization         Availability(4)
    ($ Millions) Dec-2002 Dec-2001  Dec-2002  Dec-2001   Dec-2002 Dec-2001
    Ispat Europe -
     Receivables
    (factoring
     and
     securiti-
     zation)       257        213      132        110       125        103

The Company's total external debt -- both long and short term, was $2,284 million. The corresponding amount as at 31st December, 2001 was $2,379 million. The following table gives details:

    Subsidiary        Long Term    Payable to  Current portion    Total Debt
                      Debt (LTD)    Bank        of LTD
    ($ Millions)     Dec-   Dec-  Dec-   Dec-   Dec-   Dec-      Dec-   Dec-
                     2002   2001  2002   2001   2002   2001      2002   2001
    Ispat Inland    1,086  1,093    9      23      7     7      1,102  1,123
    Ispat Mexicana    428    377    --     --     15   124        443    501
    Ispat Sidbec      236    295    13     13     54    18        303    326
    Caribbean Ispat   106    135    57     81     29    26        192    242
    Ispat Europe*     131    120    41     31      4    --        176    151
 
 
 
* Debt at Ispat Europe has gone up primarily because of the appreciation of

Euro.

Shareholders' Equity:

As a result of changes in certain key assumptions used in estimating pension cost and liability, the Company's U.S. and Canadian subsidiaries recorded additional minimum pension liability. This adjustment was recorded in Other Comprehensive Income and the amount was approximately $273 million net of income tax. The Shareholders' Equity reduced from $338 million at December 31, 2001 to $128 million at December 31, 2002.

    Year 2002 Compared to Year 2001
 
    Results of Operations

Revenue:

Sales increased by 9% from $4,486 million to $4,889 million in 2002. Total steel shipments increased by 6% from 14.1 million tons to 15.0 million tons. Net Sales also went up during the same period from $4,278 million to $4,646 million, an increase of 9%.

The Company uses Net Sales(5) numbers for managing its business. All the analyses presented here onwards are based on Net Sales numbers.

All the North American subsidiaries achieved improvements both in volume and average selling prices due to general improvements in the market conditions. At Ispat Europe, Net Sales in US Dollar were higher due to appreciation of Euro by 6% during the same period whereas steel shipment remained flat and average selling prices in Euro was marginally lower.

The following table gives a summary of key sales numbers:

    Subsidiary            Net Sales(6)                    Changes in
    Full Year           2002       2001   Net Sales   Shipments   Net Sales
                                                                    Price
                    $ Million  $ Million       %            %          %
    Ispat Inland       2,223      2,012       11            6          5
    Ispat Mexicana       649        470       38           18         18
    Ispat Sidbec         534        463       15            7          7
    Caribbean Ispat
     -Steel              183        156       17           13          3
    Caribbean Ispat
     -DRI                138        128        8            1          7
    Ispat Europe Group 1,129      1,070        5            1         (1)*
 
     (5)Sales include freight and handling costs and fees as per EITF Issue
        No. 00-10.
     (6) Net Sales numbers are standalone numbers for certain operating
         subsidiaries and include inter-company shipments.
 
    * For Ispat Europe Group the Change in Net Sales Price is shown in Euro

Cost:

Cost reductions were achieved at most of the subsidiaries. The selling, general and administrative expenses were marginally lower.

Gross Profit and Operating Income:

The Company improved in both Gross Profit (Sales less Cost of Sales, exclusive of depreciation) and Operating Income as a result of continuous cost reduction efforts as well as marginal increase in selling prices. Gross Profit increased by 150% from $213 million to $533 million. There was an operating income of $142 million in 2002 as compared with operating loss of $194 million in 2001.

The Gross Profit Margin (Gross Profit as a % of Net Sales) improved from 5.0% to 11.5%, mainly due to improvements at the North American subsidiaries offset in part by reduction in Ispat Europe Group. The Operating Margin (Operating Profit as a % of Net Sales) was positive at 3.0% as against negative of 4.5% in 2001.

The comparative numbers of Gross Profit Margin at the Company's operating subsidiaries were as follows:

    Subsidiary                                          Gross Profit Margin
                                                                 (%)
                                                        2002           2001
    Ispat Inland                                         9.8            0.5
    Ispat Mexicana                                      14.9            3.7
    Ispat Sidbec                                        13.9            9.0
    Caribbean Ispat                                     13.8            4.7
    Ispat Europe Group                                  10.0           11.3

Comparative numbers of Operating Profit and Operating Margin at the Company's operating subsidiaries were as follows:

    Subsidiary                 Operating Profit            Operating Margin
                                  $ Million                      (%)
                               2002          2001          2002          2001
    Ispat Inland                27*         (126)**         1.2          (6.3)
    Ispat Mexicana              61          (18)            9.4          (3.8)
    Ispat Sidbec                41             5            7.7           1.1
    Caribbean Ispat             18          (11)            5.6          (3.8)
    Ispat Europe Group          31            38            2.7           3.6
 
     *  After write down of $62 million towards Empire Mine and 2A Bloomer and
        21" Bar Mill
     ** After including $38 million towards certain one-time items. Refer to
        the section below.

Financing Costs:

Net Interest expense (Interest expenses less interest income) was $203 million in 2002 compared to $228 million in 2001. The decrease in interest expense was primarily due to the following reasons:

    (i)    Interest expense in fourth quarter of 2001 was higher due to
           inclusion of non cash expenses of $15 million in accordance with
           SFAS No. 133, from marking to market value, in an interest hedge
           contract,
 
    (ii)   Savings in interest cost on floating rate debt due to a fall in
           LIBOR, and
 
    (iii)  Reduction of debt.

This decrease was offset in part by debt restructuring costs at Ispat Mexicana.

    One-time items: (Expense) Income
    The company recorded the following one-time items:
 
    Item Description                            2002      2001     Included in
    Slab reheating furnace startup costs                  (28)   Cost of sales
    Workforce restructuring provision                     (18)   Cost of sales
    Credit for settlement of Lawsuit                        8    Cost of sales
    Write down in value of e-commerce software            (17) Other operating
                                                                   expenses
    Impairment loss on ocean going vessels                (22) Other operating
                                                                    expenses
    Provision for arbitration related to
     scrap supply contract                                (19) Other operating
                                                                    expenses
    Irish Ispat Closure                                   (17) Other operating
                                                                   expenses
    Write-off of investments in e-commerce
     activities                                           (19)  Other Income
    (expense)
    Write down in investments of Empire Mine     (39)          Other operating
    expenses
    Write down of 2A Bloomer and 21" Bar Mill    (23)          Other operating
    expenses
    Gain on sale of assets by pipe making
     subsidiary in Mexico                         7             Other Income /
                                                                  (expense)

Income Tax:

The Company recorded a current tax expense of $18 million ($8 million in 2001) in 2002 primarily due to inclusion of certain tax payments at Imexsa arising as a result of the 1999 Tax Reforms of the Mexican Tax Code's Consolidation Regime.

There was deferred tax benefit of $72 million in 2002 (benefit of $114 million in 2001). The deferred tax benefit was primarily due to the exchange loss on dollar denominated net monetary liabilities arising from depreciation of the currency during the year at Mexico.

Net Income:

There was a net income of $49 million in 2002 compared to a Net Loss of $312 million in 2001 due to the reasons discussed above. The 2002 net income included an extraordinary gain of $19 million after-tax arising out of repurchase of debt at a discount at Ispat Inland as mentioned above."