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."