## 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 

## POSCO

!Brochure 

## Page 1of2



## pasco to "..irii"".I" 

### invest in Korean steelfacilities Jul. 29, 2004

Will invest 1.9trillion 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) perstock by retiring 1,779,000 shares POSCO will launch a large-scale investment strategy for expanding its coke plants and electric steel sheetfacilities as well as establishing FINEX facilities at Pohang Works. Decisions were made atthe company's board ofdirectors meeting on July 23. Construction ofthe FINEX facilities will begin next month, with a projected 1.3trillion 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 of600,000 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 ofcrude steel. Construction is scheduled for October2005 to September 2007, with an investment of299.5 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 ofelectric steel sheet. With investments of 1.9trillion KRW (1.6 billion USD), this project is part of POSCO's mid- to long-term plans of investing a total of 13.5trillion KRW (11.5 billion USD) by 2008 to secure a crude steel production capacity of32 million tons. Around 80%, or 10.7 trillion KRW (9.1 billion USD), ofthe five-year investment plan will be put into the Korean steal industry, with the remaining 20% being invested overseas. POSCO expectsthis large-scale investment will have significant social and economic effects on Korea, generating employment opportunities thatwill activate the nation's economy. In an effort to stimulate the company's stockvalue, POSCO will retire 1,779,320 executive and employee-owned stocks. Equivalent to 2% ofthe total issued stocks, this will provide midterm dividends of 1,500 KRW (1.2 USD) pershare to shareholders. Atotal of 121 million KRW (103 thousand USD) in dividends will be provided to shareholders, 30% ofwhich will be shared as mid-term dividends. Lastyear, the company also provided mid-term dividends of 1,000 KRW (.85 USD) pershare. POSCO will also takeover equity atZhangjiagang 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/s91c 1 010025v.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

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

## POSCO

Love House is full ofwarmth 

### 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/s91c 1 0 1 0025v.jsp Page2of2

Jul. 29, 2004 Aug. 05,2004



## 811112005