POSCO Page 1 of 2

Jul. 29, 2004

Will invest 1.9 trillion KRW (1.6 billion USD) into facilities, including FINEX, generating

economic benefits and employment

Will share midterm dividends of 1,500 KRW (1.2 USD) per stock by retiring 1,779,000 shares

POSCO will launch a large-scale investment strategy for expanding its coke plants and electric

steel sheet facilities as well as establishing FINEX facilities at Pohang Works. Decisions were

made at the company's board of directors meeting on July 23.

Construction of the FINEX facilities will begin next month, with a projected 1.3 trillion KRW (1.1

billion USD) to be invested. Construction will be completed by December 2006. With technology

gathered from the company's demo plant, which has an annual production capacity of 600,000

tons, POSCO is positioned to complete commercialization of its innovative ironmaking process.

Additionally, the company will expand its coke plants in preparation to produce 32 million tons

of crude steel. Construction is scheduled for October 2005 to September 2007, with an

investment of 299.5 billion KRW (256.6 million USD). POSCO will also invest 299.7 billion KRW

(257.7 million USD), from May 2005 to March 2007 to strengthen the company's production

capacity of electric steel sheet.

With investments of 1.9 trillion KRW (1.6 billion USD), this project is part of POSCO's mid- to

long-term plans of investing a total of 13.5 trillion KRW (11.5 billion USD) by 2008 to secure a

crude steel production capacity of 32 million tons. Around 80%, or 10.7 trillion KRW (9.1 billion

USD), of the five-year investment plan will be put into the Korean steal industry, with the

remaining 20% being invested overseas.

POSCO expects this large-scale investment will have significant social and economic effects on

Korea, generating employment opportunities that will activate the nation's economy.

In an effort to stimulate the company's stock value, POSCO will retire 1,779,320 executive and

employee-owned stocks. Equivalent to 2% of the total issued stocks, this will provide midterm

dividends of 1,500 KRW (1.2 USD) per share to shareholders. A total of 121 million KRW (103

thousand USD) in dividends will be provided to shareholders, 30% of which will be shared as

mid-term dividends. Last year, the company also provided mid-term dividends of 1,000 KRW

(.85 USD) per share.

POSCO will also takeover equity at Zhangjiagang POSCO Stainless Steel of POSCO China. The

company will establish POSCO Japan, which will be responsible for steel material purchasing as

well as import/export businesses.

http://www.posco.co.kr/homepage/docs/en/info/press/s91 c 1010025v.j sp 8/11/2005

 EE-RM/STD-00-550 COMMENT 86

POSCO 

!Brochure 

Page 1 of2 

pasco to "..irii"".I" invest in Korean steel facilities Jul. 29, 2004 

Will invest 1.9 trillion KRW (1.6 billion USD) into facilities, including FINEX, generating 

economic benefits and employment 

Will share midterm dividends of 1,500 KRW (1.2 USD) per stock by retiring 1,779,000 shares 

POSCO will launch a large-scale investment strategy for expanding its coke plants and electric 

steel sheet facilities as well as establishing FINEX facilities at Pohang Works. Decisions were 

made at the company's board of directors meeting on July 23. 

Construction of the FINEX facilities will begin next month, with a projected 1.3 trillion KRW (1.1 

billion USD) to be invested. Construction will be completed by December 2006. With technology 

gathered from the company's demo plant, which has an annual production capacity of 600,000 

tons, POSCO is positioned to complete commercialization of its innovative ironmaking process. 

Additionally, the company will expand its coke plants in preparation to produce 32 million tons 

of crude steel. Construction is scheduled for October 2005 to September 2007, with an 

investment of 299.5 billion KRW (256.6 million USD). POSCO will also invest 299.7 billion KRW 

(257.7 million USD), from May 2005 to March 2007 to strengthen the company's production 

capacity of electric steel sheet. 

With investments of 1.9 trillion KRW (1.6 billion USD), this project is part of POSCO's mid- to 

long-term plans of investing a total of 13.5 trillion KRW (11.5 billion USD) by 2008 to secure a 

crude steel production capacity of 32 million tons. Around 80%, or 10.7 trillion KRW (9.1 billion 

USD), of the five-year investment plan will be put into the Korean steal industry, with the 

remaining 20% being invested overseas. 

POSCO expects this large-scale investment will have significant social and economic effects on 

Korea, generating employment opportunities that will activate the nation's economy. 

In an effort to stimulate the company's stock value, POSCO will retire 1,779,320 executive and 

employee-owned stocks. Equivalent to 2% of the total issued stocks, this will provide midterm 

dividends of 1,500 KRW (1.2 US D) per share to shareholders. A total of 121 million KRW (103 

thousand US D) in dividends will be provided to shareholders, 30% of which will be shared as 

mid-term dividends. Last year, the company also provided mid-term dividends of 1,000 KRW 

(.85 USD) per share. 

POSCO will also takeover equity at Zhangjiagang POSCO Stainless Steel of POSCO China. The 

company will establish POSCO Japan, which will be responsible for steel material purchasing as 

well as import/export businesses. 

http://www.posco.co.kr/hornepage/docs/en/info/press/s91 c 1 0 10025v.jsp 811112005 
POSCO Page 2 of 2

Love House is full of warmth Jul. 29, 2004

POSCO named as having the best IR in Asia's steel and mining

industry

Aug. 05, 2004

C4^P„M5HT(C) 2 rH 7J_CC. r3LL RIGHTS FErEF RED,

http://www.posco.co.kr/homepage/docs/en/info/press/s91 c 1010025v.jsp 8/11/2005

 EE-RM/STD-00-550 COMMENT 86

POSCO 

Love House is full of warmth 

pasco named as having the best IR in Asia's steel and mining 

industry 

CDP~RIG:HT(C) 200Y PDSCO. AU R!GHT$ F;ESEP.UED 

http://www.posco.co.kr/homepage/ docs/ en/info/press/ s91 c 1 0 1 0025v.j sp 

Page 2 of2 

Jul. 29, 2004 

Aug. 05,2004 

811112005