Tenaris to buy tube mill for $12.5 million

Algoma Tubes Inc., a Canadian subsidiary of Tenaris SA, is planning to buy the seamless tube mill (shown) it currently leases from Algoma Steel Inc.

The deal was disclosed today by Algoma Steel, which said the purchase price is expected to be $12.5 million Canadian.

ASI is planning to sell off another $2.5 million in surplus assets this year, the company said.

In a separate release issued Friday night from Luxembourg, Tenaris said that the agreement is conditional on conclusion of an agreement with the United Steelworkers of America.

The following are the full texts of new releases we received from ASI and Tenaris:

********************** Algoma signs letter of intent to sell seamless tube mill

SAULT STE. MARIE, ONTARIO - Algoma Steel Inc. announced today that it has signed a letter of intent with Algoma Tubes, Inc., a Canadian subsidiary of Tenaris SA, relating to the sale of tube manufacturing facilities located in Sault Ste. Marie and currently leased to Algoma Tubes, Inc.

The sale for $12.5 million Canadian is scheduled to be completed by year-end but remains subject to a number of conditions and approvals.

This sale is part of Algoma's program to reduce debt and improve liquidity.

Algoma expects to realize a total of about $15 million from the disposition of surplus assets in 2003.

Algoma Steel Inc. is an integrated steel producer based in Sault Ste. Marie, Ontario.

Revenues are derived primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet and plate.

**************************************************************** Tenaris signs letter of intent to purchase Algoma Tubes mill in Canada

Luxembourg, May 23, 2003 - Tenaris S.A. (TS: NYSE, Buenos Aires, Mexico and TEN: MTA Italy), announced today that it has signed a letter of intent with Algoma Steel, Inc. (AGA: TSE) relating to the purchase of the land and manufacturing facilities currently leased by its Canadian operating subsidiary, Algoma Tubes, Inc., for the price of $12.5 million Canadian.

The purchase, which is scheduled to be completed by the end of this year, remains subject to a number of conditions including the conclusion of an agreement with the United Steelworkers of America union and various Canadian governmental approvals.

Tenaris is a leading global manufacturer of seamless steel pipe products and provider of pipe handling, stocking and distribution services to the oil and gas, energy and mechanical industries and a leading regional supplier of welded steel pipes for gas pipelines in South America.

Organized in Luxembourg, we have pipe manufacturing facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico and Venezuela and a network of customer service centers present in over 20 countries worldwide.

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