PROFIT AND LOSS ACCOUNT ACERINOX, S.A.

(1)

Thousands of Euros Amount % Amount %

+ Net Turnover 1.255.822 100,00%

+/- Changes in inventories of Finished Goods and Work in progress (101.883) -8,11%

+ Costs capitalised for shelf-constructed assets 2.722 0,22%

- Net Supplies (935.058) -74,46%

+ Other Operating Income 1.715 0,14%

- Staff Costs (68.632) -5,47%

- Other Operating expenses (91.683) -7,30%

- Amortisation and fixed asset Depreciation (15.813) -1,26%

- Capital grants and others taken to income 2.647 0,21%

+ Excess of provisions 0,00%

- Impairment and results on sale of fixed assets (2) 0,00%

- Other results 0,00%

= RESULT FROM OPERATING ACTIVITIES 49.835 3,97%

+ Financial Income 10.790 0,86%

- Financial Expenses (23.278) -1,85%

+/- Changes in value of non financial instruments at fair value 825 0,07%

+/- Foreing Exchange differences 1.456 0,12%

- Impairment losses and results on sale of financial instruments 0,00%

= FINANCIAL RESULT (10.207) -0,81%

= RESULT BEFORE TAXES 39.628 3,16%

+/- Income tax (12.315) -0,98%

= RESULTS FROM CONTINUED ACTIVITIES 27.313 2,17%

+/- Net result from discontinued activities 0,00%

= CONSOLIDATED RESULT FOR THE YEAR 27.313 2,17%

EARNINGS PER SHARE

Basic

Diluted

PROFIT AND LOSS ACCOUNT ACERINOX, S.A.

2008 1

^st

Half 2007 1

^st

Half

Amount in euros Amount in euros

(2)

BALANCE SHEET ACERINOX, S.A.

Thousands of Euros

ASSET

2008 1

^st

Half 2007 1

^st

Half

A) NON CURRENT ASSETS 1.242.250

1. Intangible Fixed Assets 18.524

a) Goodwill

b) Other intangibe fixed assets 18.524

2. Tangible Fixed Assets 133.364

3. Investment property 3.463

4. Long term investments in subsidiaries and associated companies 1.052.844

5. Non current financial assets 28.192

6. Deferred tax assets 5.863

7. Other non current assets

B) CURRENT ASSETS 1.196.148

1. Non current assets Held for Sale and Discontinued Operations

2. Inventories 370.144

3. Trade debtors and other accounts receivable 814.726

a) Customers and trade receivables 800.267

b) Other debtors 10.488

c) Current income tax receivable 3.971

4. Short term investments in subsidiaries and associated companies

5. Other current financial assets 5.794

6. Other current assets 1.524

7. Cash, banks and equivalents 3.960

TOTAL ASSET 2.438.398

LIABILITY

2008 1

^st

Half 2007 1

^st

Half

A) NET EQUITY 1.234.431

A.1) CAPITAL AND RESERVES 1.233.435

1. Share Capital 64.875

a) Written capital 64.875

b) Minus: non called share capital

2. Share premium 206.379

3. Reserves 1.018.084

4. Minus: Treasury shares (83.216)

5. Profit and loss brought forward 6. Other shareholders contributions

7. Profit and loss from the period 27.313

8. Minus: Interim dividend 9. Other equity instruments

A.2) VALUATION ADJUSTMENTS (1.546)

1. Available for sale financial assets (1.546)

2. Hedging transactions 3. Translation differences 4. Others

A.3) CAPITAL GRANTS 2.542

B) NON CURRENT LIABILITIES 432.747

1. Non current provisions 14.345

2. Non current debts 403.496

a) Bank loans, bonds and other negotiable securities 401.744

b) Other financial liabilities 1.752

3. Non current debts with Group and Associated companies

4. Deferred tax liabilities 14.906

5. Other non current liabilities 6. Non current accruals

C) CURRENT LIABILITIES 771.220

1.

2. Current provisions

3. Current debts 465.613

a) Bank loans, bonds and other negotiable securities 418.101

b) Other financial liabilities 47.512

4. Current debts with Group and Associated companies

5. Trade Creditors and other accounts payable 286.458

a) Accounts payable 204.489

b) Other creditors 61.091

c) Current income tax payable 20.878

6. Other current liabilities

7. Current accruals 19.149

TOTAL LIABILITY AND NET EQUITY (A + B + C) 2.438.398

Liabilities directly related to non current assets Held for Sale

(3)

Thousands of Euros Amount % Amount %

+ Net Turnover 3.158.610 100,00% 4.313.286 100,00%

+/- Changes in inventories of Finished Goods and Work in progress (102.778) -3,25% 107.523 2,49%

+ Costs capitalised for shelf-constructed assets 2.136 0,07% 3.046 0,07%

- Net Supplies (2.302.986) -72,91% (3.231.106) -74,91%

+ Other Operating Income 5.302 0,17% 4.056 0,09%

- Staff Costs (165.324) -5,23% (164.348) -3,81%

- Other Operating expenses (272.785) -8,64% (289.410) -6,71%

- Amortisation and fixed asset Depreciation (60.106) -1,90% (65.372) -1,52%

- Capital grants and others taken to income 2.740 0,09% 1.143 0,03%

- Impairment and results on sale of fixed assets (368) -0,01% 3 0,00%

- Other results 0,00% 0,00%

= RESULT FROM OPERATING ACTIVITIES 264.441 8,37% 678.821 15,74%

+ Financial Income 3.830 0,12% 4.163 0,10%

- Financial Expenses (39.663) -1,26% (48.371) -1,12%

+/- Changes in value of non financial instruments at fair value 559 0,02% 1.667 0,04%

+/- Foreing Exchange differences 9.082 0,29% 8.506 0,20%

- Impairment losses and results on sale of financial instruments 0,00% 0,00%

= FINANCIAL RESULT (26.192) -0,83% (34.035) -0,79%

+/- Other results 215 0,01% 0,00%

= RESULT BEFORE TAXES 238.464 7,55% 644.786 14,95%

+/- Income tax (78.666) -2,49% (215.247) -4,99%

= RESULTS FROM CONTINUED ACTIVITIES 159.798 5,06% 429.539 9,96%

+/- Net result from discontinued activities 0,00% 0,00%

= CONSOLIDATED RESULT FOR THE YEAR 159.798 5,06% 429.539 9,96%

a) Attributable to the Parent Company 154.589 4,89% 411.547 9,54%

b) Attributable to minority interests 5.209 0,16% 17.992 0,42%

EARNINGS PER SHARE

Basic

Diluted 0,61

1,59 1,59 Amount in euros Amount in euros

2008 1

^st

Half 2007 1

^st

Half PROFIT AND LOSS ACCOUNT ACERINOX, S.A. AND SUBSIDIARIES

0,61

(4)

Thousands of Euros

ASSET 2008 1

^st

Half 2007 1

^st

Half

A) NON CURRENT ASSETS 1.568.856 1.561.976

1. Intangible Fixed Assets 81.719 78.710

a) Goodwill 69.124 69.124

b) Other intangibe fixed assets 12.595 9.586

2. Tangible Fixed Assets 1.407.464 1.425.705

3. Investment property 3.463

4. Investments accounted by equity method 4.878 4.819

5. Non current financial assets 27.540 4.627

6. Deferred tax assets 42.405 46.645

7. Other non current assets 1.387 1.470

B) CURRENT ASSETS 2.908.448 2.884.330

1. Non current assets Held for Sale and Discontinued Operations

2. Inventories 1.746.058 1.855.822

3. Trade debtors and other accounts receivable 1.021.612 827.154

a) Customers and trade receivables 938.242 744.379

b) Other debtors 59.144 63.187

c) Current income tax receivable 24.226 19.588

4. Other current financial assets 835 28.703

6. Other current assets 10.629 5.378

7. Cash, banks and equivalents 129.314 167.273

TOTAL ASSET 4.477.304 4.446.306

LIABILITY 2008 1

^st

Half 2007 1

^st

Half

A) NET EQUITY 2.199.723 2.307.600

A.1) CAPITAL AND RESERVES 2.455.806 2.443.014

1. Share Capital 64.875 64.875

a) Written capital 64.875 64.875

b) Minus: non called share capital

2. Share premium 206.379 206.379

3. Reserves 2.113.179 1.890.785

4. Minus: Treasury shares (83.216) (5.458)

5. Profit and loss brought forward 6. Other shareholders contributions

7. Profit and loss from the period attributable to the parent company 154.589 312.304

8. Minus: Interim dividend (25.871)

9. Other equity instruments

A.2) VALUATION ADJUSTMENTS (342.113) (231.707)

1. Available for sale financial assets (1.546)

2. Hedging transactions 1.163 1.328

3. Translation differences (341.730) (233.035)

4. Others

2.113.693 2.211.307

A.3) MINORITY INTERESTS 86.030 96.293

B) NON CURRENT LIABILITIES 656.147 678.139

1. Grants 4.433 1.350

2. Non current provisions 15.033 13.911

3. Non current financial liabilities 403.516 406.136

a) Bank loans, bonds and other negotiable securities 401.744 404.658

b) Other financial liabilities 1.772 1.478

4. Deferred tax liabilities 222.306 245.106

5. Other non current liabilities 10.859 11.636

C) CURRENT LIABILITIES 1.621.434 1.460.567

1.

2. Current provisions 6.373 9.795

3. Current financial liabilities 773.046 685.833

a) Bank loans, bonds and other negotiable securities 769.822 685.228

b) Other financial liabilities 3.224 605

4. Trade Creditors and other accounts payable 634.461 604.023

a) Accounts payable 493.788 490.425

b) Other creditors 111.120 100.719

c) Current income tax payable 29.553 12.879

5. Other current liabilities 207.554 160.916

TOTAL LIABILITY AND NET EQUITY (A + B + C) 4.477.304 4.446.306

BALANCE SHEET ACERINOX, S.A. AND SUBSIDIARIES

NET EQUITY ATTRIBUTABLE TO THE PARENT COMPANY (A.1 + A.2)

Liabilities directly related to non current assets Held for Sale