SPEECHES

Mr. JOSÉ MARÍA AGUIRRE GONZÁLEZ

CHAIRMAN

Mr. RAFAEL NARANJO OLMEDO

CHIEF EXECUTE OFFICER

GENERAL SHAREHOLDERS MEETING Madrid, 27th May 2008

SPEECH OF

MR. JOSÉ MARÍA AGUIRRE GONZÁLEZ

CHAIRMAN

GENERAL SHAREHOLDERS MEETING

Madrid, 27th May 2008

Good morning, dear Shareholders, Once constituted the General Shareholders Meeting table, with enough quorum of present and represented shares to take valid agreements, as Chairman of the Board of Directors, I feel obliged to explain some statements about the Company progress.

It is my first and my last performance as Chairman of Acerinox Group.

I joint Acerinox Board of Directors for the first time in 1988 representing the Banco Español de Crédito, which was chaired by Mr. Mario Conde, but I presented my resignation a few months later. Afterwards, as it appears in the Report which has been handed to you, I joint again the Board of Directors in 1992.

Last Year, when Mr. Victoriano Muñoz Cava presented his resignation, the Board of Directors appointed me as Non-Executive Chairman of the Company. Only for the ten months which have elapsed, because mi mandate expire and I cannot be reelected for being older than the maximum age established in the Articles of Association.

Consequently, I have been Acerinox Chariman by accident. A member of the Board, who has been taken out of the bench only to play the two last minutes of the match. In these ten months I have had the opportunity to know the company, its facilities and its human team in depth. My diagnosis is excellent and the company will go on achieving great business successes in the future.

Mr. Victoriano Muñoz Cava was leading Acerinox since its foundation, during 37 years. First as Managing Director, later as Chief Executive Officer and from 1988 as Excutive Chairman.

His management style together with Nisshin management style created a company culture which pervades the whole of its activities. Up to now, the facts have proved that it is perfectly valid to be competitive in a globalized world.

It is difficult to inform in a General Shareholders meeting about something which may be unknown to them.

With the great deal of information provided by the Spanish companies to the shareholders, a month beforehand, there is nothing concealed to the external observers.

You have the Management Report of thorough information, which afterwards will be reviewed by the Chief Executive Officer, Mr. Rafael Naranjo. For that reason, I do not wan to insist on the same specific figures. INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS All of you know that we have an excellent industrial establishment on a worldwide scale. The decision to construct a factory in the United States was a success. In the last year North America has contributed with 65% to the results, the parent company with 41% and 9% from Columbus, our South African subsidiary.

1

When I was appointed Chairman, at the end of the Meeting, one of the shareholders asked me if we were going to invest in China. I categorically answered: “Under my chairmanship, of course not. The fact is that we have studied thoroughly the location for our fourth factory. Finally, as you know, we have decided to invest in Malaysia, after dropping China and India, possibilities which at its time were studied in detail so as to analyse the advantages and disadvantages. In Malaysia we are going to be joint by Nisshin as a partner, which from its foundation has been the ideal partner for Acerinox, to which we will be forever grateful. The partner we have had during many years in ACERINOX trading company in Malaysia will also join us as a partner. I prefer that the Chief Executive Officer explain to you the investment development. I only inform you that the total forecasted investment totals 1,500 million dollars. As I mentioned before, we have been selling in Malaysia for a lot of years, in fact we are present all over the world. I would like to highlight that our commercial network worldwide has as much importance as our industrial facilities and many shareholders do not know about this fact. We are present in 80 locations in the world; 21 of them are service centres, I mean, the facilities were the material is transformed in some way to be delivered to the customers. Besides, we have 34 warehouses, 27 commercial offices with a total staff of 860 employees; half of them are living abroad. This commercial network operates in real time and provides an excellent service to the customers, which is an essential condition to be competitive in a globalized world. Consequently, we have good industrial facilities, which achieve the lower possible costs and besides a commercial network which get efficiently to our costumers. So, we can say our position is really enviable. THE NICKEL PRICE Which is the problem to achieve profits with such optimum conditions of production and sales? Our results depend on the nickel price. The nickel price fluctuations are completely unpredictable. The purchase and sales operations are speculative in most of the cases, and they do not depend on the law of supply and demand. From last summer all the economic experts speak about the derived financial assets, which have led to the current financial crisis worldwide. Raw materials can cause similar crisis. In year 2007 the volume of nickel transactions in the London Metal Exchange was 16.5 times the real demand for this metal. The price is a result of pure speculation. The stockists which sell stainless steel sheets watch, naturally, the nickel price evolution in the London Metal Exchange. They go for a rise or a drop and advance or delay their purchases to the factories so as to get the best margin in their sales. Therefore, the stockists, with their purchases pattern, enhance the future fluctuations of the nickel price. Besides, they determine the cycles of our productions, because we prefer to stop the facilities when there is no book of orders.

2

2006 was a really exceptional year for Acerinox because nickel price worked in our favour. Nevertheless, 2007, which we are speaking about in this General Shareholders Meeting, only had a favourable first half, from January to May, but afterwards our activity was very damaged by the nickel price plunge. In May it reached an all-time high of 54,200 USD/Mt and three months later, in August, it was quoted at less than its half. Something really outrageous. However, the result achieved by Acerinox in 2007, 312 million euros, is the second best result in its history, only surpassed by the second-to-none year 2006. SHARE QUOTATION The analysts study the results which we are achieving quarterly and they are reflected in the quotation of our share in the Stock Exchange. The weeks elapsed from the beginning of 2008 have not been very brilliant for the Spanish stock exchanges, but our shares have had a better behaviour than the whole of the Ibex-35. In the 4 first months of this year Acerinox share quotation increased by 3.39% against the quotation at the end of the year. Only 30 values increased during this period, the quotation of the rest of the listed companies, 12O, decreased. For the shareholders which really value Acerinox Group and consequently keep their shares in the long term, Acerinox has multiplied their value by 2.5 times in ten years. This means a better behaviour than that of the IBEX-35. We have increased by 36% over the IBEX, which not always consists of the same companies, but those which have more movement in the stock exchange. So, if they have more movement is because the investors consider them as the 35 companies which are more attractive in the share market. They are those who behave better each year and not an average of the whole of the Stock Exchange. TREASURY STOCK AND DIVIDENDS You already know, because it was announced in February, that the Society has bought own shares, for treasury stock, and that we have reached 2% of the Share capital at an average price of 15.85 euros per share. Today, if the General Shareholders Meeting approves it, the Board of Directors propose to redeem said shares and consequently, each stake of ACERINOX which corresponds to each shareholder will be 2% higher. Regarding the distribution of the Year profit, we are going to propose to keep the same dividend and also the same refund of the Issue Premium of the year before. We maintain our traditional policy based on payments to the shareholder. In January 2008, 0.10 euros per share on account of year 2007 were paid and 0.10 euros per share in April. Now we propose to the General Shareholders meeting a complementary dividend o 0.15 euros per share, which will be paid on the 4th July. The Issue premium refund will also be maintained, 0.10 euros per share, which will be paid in the last quarter of 2008.

3

We repeat the same figures of 2006, which as it has been mentioned, was and exceptional year and this way, the shareholder receive for his shares 32% more than in 2005. Including the Issue premium refund, on account of year 2007, 89% of the Profit is paid by the parent company, which pays the dividends. If we consider the Consolidated Group, the pay-out would be 37%. ADAPTATION TO THE REGULATIONS The novelty this year for the shareholders is the payment of a bonus for attending the General Shareholders Meeting. This bonus will be 0.03 euros. This attendance bonus is more than 6% over the 0.45 euros per share, which were paid out last year, including dividends and issue premium. The reason to give this attendance bonus is to assure the necessary quorum to the proposed modification of the Articles of Association, which according to Art. 13 of the current Articles, requires at least 50% of the capital with present or represented shares and in de case of not reaching this percentage, the approval for 2/3 of the votes of the General Shareholders Meeting. All of you know about the efforts, Spain has carried out to provide their companies with the highest transparency regarding the information presented to their shareholders and with regulations which guarantee the Good Governance of the Society. The codes have the name of the chairmen of the different commissions and we begin with the Olivencia Code, next to the Aldama Code and lastly to the Conthe Code. According all these recommendations and with the rules required by the National Stock Exchange Commission, Acerinox has reviewed thoroughly all the Articles of Association and the internal rules of the Board of Directors so as to adapt them to the new requirements. I would highlight the elimination of the “shield”, which the National Stock Exchange Commission recommend to the companies and which we established at that time, limiting to 10% the right of a vote per shareholder. I do not want to hide that the elimination of this “shield” of 105 of the vote can make a takeover bid easier. But neither, I want to hide that the companies have better quotations in the stock exchange when there is a rumour of a takeover bid floating in the air, than when this kind of operation is considered to be impossible by the investors. It all depends on how you look at it. The criteria evolve in the time and if nowadays the National Securities Exchange Commission recommends to eliminate this “shield”, the Board of Directors wants to propose it to the General Shareholders Meeting.

4

CHANGES IN THE BOARD OF DIRECTORS Three resignations in the Board of Directors will take place today: Mr. Nariyoshi, domanial Director, who will be replaced , if you approve it, by Mr. Hayakawa, as it is proposed by Nisshin first executive. For reasons of age, and due to the fact that the Articles of Association do not allow our re-election, two independent Directors, Mr. Marcelino Oreja and myself present our resignation. I would like to thank Marcelino Oreja for all he has done for this company and I can assure you that it is not mere politeness. To replace us, I am pleased to propose as Independent Directors two outstanding figures in the business world: Mrs. Amparo Moraleda, IBM President for Spain and Portugal, Greece and Turkey and Mr. Braulio Medel, Unicaja Chairman. Both of them are such valuable persons, so prepared and with such recognized prestige, that their incorporation will be really positive for our Society. The decision of appointing a Chairman does not fall to the General Shareholders Meeting, but to the members of the Board of Directors, but I feel obliged to inform you that the Board Directors has appointed our first executive, Mr. Rafael Naranjo for this position. We will return to the Executive Chairmanship, as Mr. Victoriano Muñoz Cava has been holding until last year. A BRILLIANT FUTURE I have mentioned that Acerinox results depend much on the nickel price fluctuations. In the first months of 2008 the nickel quotation has had more stability. The result is that the stainless steel demand in the market becomes also more stable, the book of order volume improves and due to the higher demand, the orders can be closed at a better base price than that of the end of year 2007. The book of orders allow that all the Group factories keep a better production activity and that the inventories levels in the Group warehouses have decreased, improving the treasury. All these facts make us foresee that in the following quarters of 2008 the results will be better and better. Since last Summer, the World has suffered an unprecedented financial crisis. Undoubtedly this financial crisis turns into a crisis of the real economy worldwide. Nevertheless, the situation will return to its normal course. The general consumption will recover and the higher consumption will result in a higher demand for the stainless steels. Consequently, I believe that Acerinox will have a good future. We have continued to invest in all our factories to improve our productivity and to achieve lower production costs and the Malaysia investment will enhance our capacities as one of the leading companies in the sector. If nowadays our world production share is 8.30%, with this new investment we think we will reach the 12.50% share of the world production.

5

We are not dreaming. In the United States we have reached a 30% market share for flat products. It is an amazing figure in such an important market as the United States one and as a Spanish company we have to feel proud about that. I do not want to expand longer on my reflections. I give the floor to Mr. Rafael Naranjo, who as the first executive of our Group, will speak with more detail and with more exact figures about ACERINOX progress during 2007.

• TURN FOR THE SHAREHOLDERS QUESTIONS OR COMMENTS.

• READING BY THE SECRATY FOR THE APPROVAL OF THE AGREEMENT PROPOSALS.

Once the proposals are approved by the General Shareholders Meeting, I only would like to thank you for your attendance and the attention paid to our reports. My father founded Acerinox in 1970 and he was its first Chairman. After 38 years following closely Acerinox evolution, my bond to the company is very strong. Today my mandate as Director of the Society finish and also my 10 months as Chairman but I really remain at the shareholders and company employees disposal, if I could be of any assistance in other activities of my professional career. Thank you very much for your trust and the meeting is concluded.

6

SPEECH OF

MR. RAFAEL NARANJO OLMEDO

CHIEF EXECUTIVE OFFICER

GENERAL SHAREHOLDERS MEETING

Madrid, 27th May 2008

Chairman, Members of the Board, Ladies and Gentlemen, It is an honour for me to speak to ACERINOX General Shareholders Meeting. A year ago I was appointed as Chief Executive Officer on the 7th May 2007. Although it is the first time I speak to you, I am senior in my trade and in this company, where I have been working for almost 38 years, before it was officially incorporated in November 1970. I was part of ACERINOX initial team and still I am, although in another position, part of the team, who during so many years keeps on developing this project continuously, having holding the position of Managing Director during 14 previously. With this, I want to convey basically two ideas: Continuity and Team, which have been essential in our little history of ACERINOX, although perhaps up to now, they have not been enough highlighted and visible to the outside.

ACERINOX was born to develop in Spain a stainless steel factory project, planned in all its steps, to become an integrated factory. It was a time of organic growth, carried out during 12 years.

1

Later in 1990, we developed a new project, this time in the United States, with a similar concept, also planned in all its steps, in order to reach an integrated production and afterwards with the completion of other upgradings. The last upgrading, currently under way, will be finished between this year and the first quarter of next year. Consequently, we have 18 years of organic growth in the United States.

EVOLUTION OF THE CAMPO DE GIBRALTAR FACTORY

I Phase 1973-75

II Phase 1976-77

XIV Phase 2005-06

III Phase 1982-83IV Phase 1984-85V Phase 1989-92

VI Phase 1995VII Phase 1995

VIII Phase 1996

IX Phase 1998-99

X Phase 2000-01XI Phase 2001-03

XII Phase 2003-05XIII Phase 2004-05

XV Phase 2006-07

2

In 2001, we had the opportunity to purchase in very advantageous conditions a majority stake of an integrated stainless steel factory, COLUMBUS, in South Africa and although the growth through acquisitions has never been our policy, it was such an opportunity that we could not let go but it has not broken our permanent position based on the organic growth. In fact, during the last seven years, we have also been developing in Columbus an upgrading plan, which last phase under way will be completed by the first quarter next year.

OHIO RIVEROHIO RIVER

EVOLUTION OF KENTUCKY FACTORY

1998-00Hot Rolling Shop

2002Melting Shop

2003Long Products Shop

1993-95Cold Rolling Shop, No.1,No.2 SZ mills and No.1, No.2 AP lines. Bargedocking instalations

2004Cold Rolling Shop: No.3SZ mill and No.3 AP line

2006Cold Roll.Shop: No.4 SZMelting Shop: No.2 EAF

2008Cold Roll.Shop: No.5 SZand AP No.4Melting Shop: No.2 AODconverter and LMF

1998-00Hot Rolling Shop

2002Melting Shop

2003Long Products Shop

1993-95Cold Rolling Shop, No.1,No.2 SZ mills and No.1, No.2 AP lines. Bargedocking instalations

2004Cold Rolling Shop: No.3SZ mill and No.3 AP line

2006Cold Roll.Shop: No.4 SZMelting Shop: No.2 EAF

2008Cold Roll.Shop: No.5 SZand AP No.4Melting Shop: No.2 AODconverter and LMF

3

Simultaneously, during all these years we have been developing a very powerful commercial network, which allows to close our activity cycle. We have 21 service centres and 2 more under construction, 27 trading offices with 897 employees, out of which, 436 are working abroad. As I will explain later, from this year we tackle a new project in Malaysia, also planned in all its steps and that will give continuity to our growth in the years to come. Another mainstay of our development is the team. The team who, at all levels, work, plan and manage our Group. ACERINOX team has two features which I think make it different from any other team of our competitors. Firstly, the exceptionally low staff turnover mainly in Spain and the United States. Without looking into the sociological reasons or of any other kind to explain this feature, it is far clear that ACERINOX employees, in almost all of the cases, have felt good in the company during a long time and still feel the same. Secondly, in ACERINOX there have not been mergers, redeployments of labours, restructurations or consolidation processes, which have been a permanent feature in our sector. In this sense, we have been an exception worldwide. The result is that the experience accumulated by ACERINOX team is second-to-none in our sector. Most part of our staff were taken on from the technical colleges or universities and have been trained in the company, sharing one only business culture, which enhance the understanding. Our team is an all-important asset of ACERINOX Group. This is not meant to be a rhetorical praise to the staff, but the explanation of a feature which is internationally recognised by the whole of the analysts and also by our competitors.

4

The Group activities are growing in complexity and in turnover, and the same can be applied to the annual report, which gets bigger and bigger. Due to the fact that all of you have an annual report, I am going to highlight what is more important for me, no only the year closed on the 31st December but also our activity during the year elapsed from the last General Shareholders Meeting. 2007 has bee a difficult year for the stainless steel industry. Likewise, it has been a surprising year, even for those of us who have a long career in our sector for so many years. In the world stainless steel sector 2007 has been featured by two parts strongly different. The first one, from January to May, a high activity was developed as a follow-up of year 2006. This situation changed dramatically by the nickel price plunge, which in the month of May reached its all-time high, 54,200 USD/Mt in the L.M.E. and that in a very short time fell to 25,000 USD/Mt. The quick market reaction leaded to a strong contracting of demand, which reduced drastically the entry of orders to the stainless steel producers. On the other hand, the distribution sector carried out a strong policy to reduce inventories, which resulted in the sharp drop of market prices. This situation lasted during the whole second half of the year, with demand and market prices at exceptionally low levels, affecting almost all the world markets. This scenario has resulted in the best half yearly results in our history (the first half of the year), followed by the worst half year in our history (the second half of the year), although the final result of the year shows that 2007 has been our second best year after the exceptional 2006. The market behaviour previously mentioned has been reflected in the world stainless steel production. The world production in year 2007 has amounted to 27.67 million Mt, which decreases by 2.6% the output of the previous year. These figures slightly correct those of the Annual Report and are definite.

25,000

30,000

35,000

40,000

45,000

50,000

55,000

OFFICIAL NICKEL PRICE IN THE L.M.E.(Year 2007)

Average price: cash / three months USD/Mt.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

5

All the producing countries have reduced their productions with the only exception of China. In this country, new installations derived from the investment plans of previous years, have come onto stream. Consequently, there has been a strong production increase of 36%, reaching 7.2 million Mt (25.8% of the world production). The 2.6% reduction of the world production does not break the extraordinary development of the world consumption of stainless steels, which in the last 57 years has grown at an annual rate of 6%, more that any other metal or alloy of industrial application.

EVOLUTION OF THE STAINLESS STEEL WORLD PRODUCTION

Europe and Africa Asia America

22.8 24.6 24.3

Statistical source : International Stainless Steel Forum (ISSF)

9.12.7

12.5

YEAR 2003 YEAR 2004 YEAR 2005

9.8

2.911.9

9.52.7

10.6

+7.5% +16.7%-1.0%

YEAR 2006

3.0

15.1

10.3

28.4

YEAR 2007

27.7-2.6%

2.6

16.0

9.1

Million Mt.

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

22.000

24.000

26.000

28.000

30.000

Thousand Mt.

Compound annual growth rate

YearsYears 19501950--2007: +6.02007: +6.0%%

WORLD PRODUCTION OF STAINLESS STEEL

50 60 70 80 90 00 07 Source: VALE INCO, & ISSF

30,000

28,000

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

6

The reflection of the prices evolution in the markets is clearly seen in the German market, the most representative in the European markets. 42% of our commercial activity takes place in Europe. In the graph we can see clearly separated the base price evolution and the corresponding part to the extra surcharges. Considering that we are basically neutral regarding the extra surcharge, due to the fact that it is a transfer to the price the raw material costs variation on some reference values, we can see than in the first half year 2007 we have had the best base prices of the last decade and the worst prices in the last ten years during the second half of the year.

PRICES OF STAINLESS STEEL COLD ROLLED SHEET AISI. 304 2.0 mm (1997 – 2007)

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

Base Price Alloy Surcharge SOURCE: MBR

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

€/Mt GERMAN MARKET

97 98 99 00 01 02 03 04 05 06 07

2.41

3.23

3.02

3.51

3.47

6.16

Lead

Copper

Zinc

Aluminium

Steel withoutstainless steel

Stainless steel

GROWTH OF STAINLESS STEEL AND ALTERNATIVE METALIC MATERIALS (1990 – 2007)

Compound annual growth in % per year

Average 3.13

7

Besides, it must be pointed out that this situation has returned to normal to a great extend during the months elapsed of year 2008. In the North American market the situation has been similar and in the Asian markets the prices trends have also been similar but with lower prices, which has leaded to a strong flow of exports both to Europe and to the United States of material coming from Asia, taking advantage of the price differentials. These exports, already significant during 2006 and in the first half of year 2007, decreased considerably in the second half of the year since the differences of prices were reduced and the uncertainty about demand increased.

PRICES OF STAINLESS STEEL COLD ROLLED SHEET AISI. 304 2.0 mm (1997 – April 2008)

Base Price Alloy Surcharge SOURCE: MBR

€/Mt GERMAN MARKET

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

97 98 99 00 01 02 03 04 05 06 07 08

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

USA

GERMANY

HONG KONG

PRICES OF STAINLESS STEEL COLD ROLLED SHEET AISI. 304 2.0 mm (1997 – April 2008)

SOURCE: Metal BulletinResearch “Stainless SteelMonthly”

USD/Mt, final price, alloy surcharge included

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

5.500

6.000

6.500

7.000

97 98 99 00 01 02 03 04 05 06 07 08

8

In the whole of the year, the European apparent consumption for flat products dropped by 12.5% and in the United States it also decreased by 15.7%. As you can see, it has been a complex year. In these adverse scenario we have developed our activity very satisfactory. The Group productions, in line with the market, evidently, have been lower than the outputs of the previous year but to a lesser extent than the reduction of apparent consumptions of the markets which are more important for us. Melting Shop ………………………………………. 2,310,000 Mt. (10.8% lower) Cold Rolling ………………………………………. 1,455,024 Mt (8.8% lower) Long products ………………………………………. 196,700 Mt (21.9% lower)

Total Acerinox, S.A. NAS Columbus

0

30

60

90

120

150

180

210

240

270

300

98 99 00 01 02 03 04 05 06 07

Roldan

PRODUCTION OF ACERINOX GROUP (Thousand Mt.)

0

250

500

750

1.000

1.250

1.500

1.750

2.000

2.250

2.500

2.750

98 99 00 01 02 03 04 05 06 070

250

500

750

1.000

1.250

1.500

1.750

2.000

2.250

2.500

2.750

98 99 00 01 02 03 04 05 06 07

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

98 99 00 01 02 03 04 05 06 07

MELTING SHOP HOT ROLLING COLD ROLLING Long Product

MELTING SHOP MELTING SHOP 901,295 901,295 751,671 657,051 2,310,017 751,671 657,051 2,310,017 --10.8%10.8%

HOT ROLLING SHOP HOT ROLLING SHOP 751,959 751,959 649,533 638,691 649,533 638,691 2,040,183 2,040,183 --9.3%9.3%

COLD ROLLING SHOP COLD ROLLING SHOP 585,055 511,438 358,531 585,055 511,438 358,531 1,455,024 1,455,024 --8.8%8.8%

ROLDANROLDANLONG PRODUCTSLONG PRODUCTS

PRODUCTION OF ACERINOX GROUP YEAR 2007 Mt.

NASNAS

HOT ROLLING SHOP HOT ROLLING SHOP 122,303122,303 74,397 196,700 74,397 196,700 --21.9%21.9%

Variation Variation over 2006over 2006

TOTAL TOTAL VariationVariationover 2006over 2006

ACERINOXACERINOX NAS NAS COLUMBUSCOLUMBUS TOTAL TOTAL FLAT PRODUCTSFLAT PRODUCTS

9

Regarding flat products, the production decreases were very similar in the three factories located in three different continents, which shows the high degree of globalization of our industry. In spite of this production reduction, we have recently confirmed that in year 2007 and for the first time in our history, ACERINOX GROUP is holding the position of the first stainless steel producer worldwide, with a 8.3% share in the world market. Anyway, our aim is not to be the biggest producer in the world, but the most competitive one. This leading position, the second producer in 2006 and the first one in 2007, is supported not only by our real productions in the last four years, but also by the current installed production capacity. With the investment plan at the moment under way, and with equipment and facilities that will be completed during this year and the first quarter of 2009, our production capacity will have a significant increase, which will allow us to face future needs. MELTING PRODUCTION: 3.5 million Mt HOT ROLLING: 3.1 million Mt COLD ROLLING: 2.1 million Mt LONG PRODUCTS: 0.4 million Mt 3,500,000 Mt in the melting shop implies 12.5% of the world production in 2007. This investment program will also improve the distribution of our capacities in the big geographic areas where they are already installed and one of the essential assets of the Group. I want to point on purpose that this geographical distribution of the assets marks an essential structural difference with the biggest companies of our sector.

10

The Group Sales in 2007 achieved a new all-time high, despite the already mentioned lower volume of Metric Tons, due to the higher final prices because of the nickel impact. Net Sales amounted to 6,901 million euros, 22.4% higher than invoiced figure of the previous year, with a sales distribution very similar to that of 2006. In our commercial network we have opened new warehouses in Seville (Spain), Warsaw and Wrightsville (Pennsylvania). We have two service centres under construction in Oporto and Monterrey (Mexico). He have begun a investment program in the commercial network amounting to 58.7 million euros, to improve and upgrade our network in Europe (Spain, Italy, Poland, Germany and the U.K).

EVOLUTION OF ACERINOX GROUP NET SALES

6,901

3,421

2,6482,392

1,520

598

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

5.500

6.000

6.500

7.000

98 99 00 01 02 03 04 05 06 07

Consolidated Group

Trading Companies

ACERINOX S.A.

N.A.S.

COLUMBUS

ROLDAN + INOXFIL

Million €

7,000

6,500

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

GEOGRAPHICAL DISTRIBUTION OF ACERINOX GROUP NET SALES

YEAR 2007

Europe Europe

41.8%41.8%

AmericasAmericas36.0%36.0%

AsiaAsia

17.1%17.1%

AfricaAfrica

5.0%5.0%

OceaniaOceania

0.1%0.1%

YEAR 2006

Europe Europe

45.1%45.1%

AmericasAmericas39.1%39.1%

AsiaAsia

11.2%11.2%

AfricaAfrica

4.5%4.5%

OceaniaOceania

0.1%0.1%

11

I am not going to speak in detail about the Group Societies, which are largely explained in the Annual Report in your hands. I want to focus in the Consolidated Group Data. The Consolidated Group results and particularly their half-yearly evolution is the true reflection of the previously mentioned circumstances. In the first half of the year the best half-yearly result in our history was achieved, 411 million euros. The second half of the year had the worst half-yearly result in our history, with 99 million euros loss, true reflection of the impact than the unparalleled nickel price plunge had on the market and on the producers margins. The EBIDTA, 655 million euros has only been surpassed by the figure of 2006, as is the result before taxes and minorities, 459 million euros, although it is 42.7% lower than the figure of the previous year, which shows the Group strength and its capacity to create profits, which allows us to tackle with the troubles of the second quarter 2007.

QUARTERLY EVOLUTION OF THE RESULT AFTER TAXES AND MINORITIES. ACERINOX GROUP

210.2

38.6

55.7

76.8

23.2

81.6

201.3

39.3

78.481.9

26.5

85.4

37.9

169.9

12.821.2

79.9

-112.0

-41.8

231.6

-125-100

-75-50

-250

2550

75100

125150

175200

225250

2003 2004 2005 2006 2007

Million € YYears 2005 and 2006 armonized by IAS

CONSOLIDATED GROUP 2007 2006 Variation

Net Sales 6,900,883 5,637,227 22.4%

EBITDA 654,791 957,776 -31.6%

EBIT 526,254 858,412 -38.7%

Profit before taxes and minorities 458,686 800,482 -42.7%

Depreciation 128,586 131,776 -2.4%

Gross Cash Flow 587,272 932,258 -37.0%

Profit after taxes and minorities 312,304 502,991 -37.9%

Net Cash Flow 440,889 634,767 -30.5%

12

Following ACERINOX traditional policy provisions for adjusting inventories to net realizable values have been carried our for an amount of 97.4 million euros. With all this, the results after taxes, 312.3 ,million euros, is even higher than the results of the excellent year 2004, only surpassed by 2006. The contribution to results is leaded once again by NAS, with 64.7%, followed by ACERINOX with 40.8%. COLUMBUS contribution, 9.1%, has been more affected due to the higher vulnerability of this subsidiary company to the market ups and down, which we hope to correct soon. Our subsidiary companies of long products, ROLDAN and INOXFIL, have contributed a 5.7% in such a difficult year. The trading companies, which by their own nature, have to store inventories, are those which have suffer more directly the impact of the market deterioration. The net indebtedness of the Group has decreased to 922.6 ,million euros, which contributes with very satisfactory ratios, as the indebtedness over own stock of 40% and which related with the EBIDTA generated in the year, 1.4 times.

YEAR 2007

-11.9

-8.4

5.7

9.1

40.8

64.7

-20 -10 0 10 20 30 40 50 60 70

OVERSEAS tradingcompanies

SPANISH trading companies

Roldán and Inoxfil

Columbus

Acerinox

NAS

CONTRIBUTION TO THE RESULT AFTER TAXES AND MINORITIES CONSOLIDATED GROUP (%)

CONSOLIDATED GROUP 2007 2006

Cash Flow per share 1.70 2.45

Earning per share 1.20 1.94

Gross margin 21.5% 33.0%

EBITDA 9.5% 17.0%

EBIT 7.6% 15.2%

ROE 13.5% 22.1%

ROCE 16.3% 24.3%

GEARING 40.0% 55.0%

Net Debt / EBITDA 1.41 1.31

Book Value at 31-Dec-06 8.89 8.79

13

The share year 2007 has been particularly complicated for all the markets due to the financial international crisis begun in the Summer, the general economic deceleration, the rise in the raw materials prices, specially the crude and the real state crisis in Spain. In this context, most of the Ibex-35 values close the year in losses. ACERINOX evolution during the year was marked by a correction in the first quarter of the exceptional appreciation which featured the last quarter of 2006 and a new correction in the last quarter for the above mentioned reasons. The two-year period behaviour is in line with the Ibex-35 and as usual the behaviour analysis of the share in the long term is much higher not only than the Ibex but also than the main reference values worldwide.

EVOLUTION OF THE STOCK EXCHANGE MARKET. YEAR 2007

-30%

-20%

-10%

0%

10%

20%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ACERINOXACERINOX quotationquotation IBEX 35IBEX 35

-27.0%

+7.3%

Daily percentage data

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

EVOLUTION OF THE STOCK EXCHANGE MARKET. YEARS 2006-2007

ACERINOXACERINOX quotationquotation IBEX 35IBEX 35

+41.4%

+36.9%

1Q.06 2Q.06 3Q.06 4Q.06 1Q.07 2Q.07 3Q.07 4Q.07

Daily percentage data

14

The share capitalization of ACERINOX amounted to 4,367 million euros at the end of the year. The Board of Directors, according to its policy to increase the dividend in the profitable years and maintain it in the difficult ones, submits to its approval the distribution of the results after taxes of the parent company, 130.7 million euros in de following way;. 89.4 million euros to distribution of dividends and 41.3 million euros to voluntary reserve.

As the two dividends on account of year 2007 have been already paid on the 4th January and 4th April, of 0.10 euros each, we propose to pay out a complementary dividend of 0.15 euros in July and also to return the Issue Premium of 0.10 euros, which will be effective in October. Definitely, we propose a total retribution for the year of 0.45 euros, identical to that paid out on account of year 2006 and 32% higher than the retribution of 2005.

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

MARKET CAPITALIZATION OF ACERINOX, S.A. 1998 - 2007

Compound annual growth rateCompound annual growth rate : 15.9%: 15.9%4,367

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Figures in million €

PROFIT AFTER TAXES OF THE YEARPROFIT AFTER TAXES OF THE YEAR 130,722,344.28130,722,344.28

PROPOSAL OF APPLICATION OF RESULTS. ACERINOX, S.A.

APPLICATION :APPLICATION :

* DIVIDENDS* DIVIDENDS 89,445,426.4589,445,426.45

* VOLUNTARY RESERVE * VOLUNTARY RESERVE 41,276,917.8341,276,917.83

Euros

15

The Board of Directors, in view of the share market juncture and favoured by the financial strength of the company, decided to acquire 2% of the share capital. We propose its redemption, as usual, looking for benefit you, the shareholders, by the most effective means to create value. The beginning of 2008 has been positive for ACERINOX Group and there are signs in the market that show that the situation suffered during the second semester of the previous year has changed its trend and has begun to improve both in Europe and in the United States. Demand is sustained; the book of orders has return to its normal levels; the prices have improved and the nickel price in the London Metal Exchange has a relative stability, at least for the time being.

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

0,55

03 04 05 06 07

RETURN TO SHAREHOLDERS

0.34

0.29

DividendDividend

0.210.26

0.08

0.08

0.34

0.26

0.08

0.45

0.35

0.10

0.45

0.35

0.10

€ / share

Issue Premium Refund

0.55

0.50

0.45

0.40

0.35

0.30

0.25

0.20

0.15

0.10

0.05

0.00

Face value 0.25 euros

2% REDEMPTION OF THE SHARE CAPITAL

259,500,000259,500,000sharesshares

254,300,000254,300,000sharesshares5,200,0005,200,000

proposal of 2% redemption

Share CapitalShare Capital

64,875,000 euros64,875,000 eurosShare CapitalShare Capital

63,575,000 euros63,575,000 euros

16

The Group productions are at virtually normal levels. The prices are not so exceptional as those of the first quarter of the previous year, the best of the last decade, but higher than the prices of the second semester of 2007. Nevertheless, in the Far East markets either the demand nor the prices have improved. And this has been reflected in the result after taxes of the first quarter which has already been published, 66.7 million euros.

QUARTERLY EVOLUTION OF THE RESULT AFTER TAXES AND MINORITIESACERINOX GROUP

66.7

55.7

76.8

23.2

210.2

78.481.9

201.3

81.685.4

37.9

169.9

12.8

79.9

-41.8

231.6

-112.0-125-100

-75-50-25

0255075

100125150175200225250

2004 2005 2006 2007 2008

MillionMillion €€

PRICES OF STAINLESS STEEL COLD ROLLED SHEET AISI. 304 2.0 mm (1997 – April 2008)

Base Price Alloy Surcharge SOURCE: MBR

€/Mt GERMAN MARKET

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

97 98 99 00 01 02 03 04 05 06 07 08

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

17

On the other hand, I would like to point out with satisfaction that after the two-month negotiation in the Campo de Gibraltar Factory, we have reached an agreement with the Workers Committee, ratified by the votes of the staff about the No. 17 Labour Agreement. It will be effective for the next four years, until the end of 2012 and will affect 2,225 employees of the factory. Likewise, we have announced the approval of a new Investment Plan for the Factory (No 17 Phase) for 45.6 million euros to be developed in two years. An important part of this investment phase (22%) will be located to improvements in safety at work and environment. The remaining part will be located to improve and upgrade the equipment which is currently in operation. As I mentioned at the beginning of this speech, we have announced the decision to construct a new stainless steel plant in Malaysia. For many years, we have been thinking about the possibility of producing stainless steel in Asia, due to the fact that we realised that it would become the area of biggest growth of consumption and production of stainless steel, as it has been occurring. On the other hand, relating our asset distribution, which as mentioned, is unique in the sector, with the big consumption areas, we see that we still have the possibility to improve ACERINOX presence worldwide with the installation of a production plant in Asia.

18

We have carried out a thorough feasibility study considering various alternatives, as China, India, Malaysia, having concluded that the latter, Malaysia, is the most advisable. In this investment, leaded by ACERINOX with a majority stake of 60%, will be joint by our traditional partners, NISSHIN STEEL, METAL ONE and our current partner in Malaysia. The plant is located in JOHOR BAHRU, in a 140 Has land by the sea, next to Singapore. It is a strategic location placed in the biggest port complex in the world, which allows a competitive transport to the countries of the area. The new factory will be built in successive phases and in its last stage it will be integrated with a melting production capacity of 1 million Mt/year and 600.000 Mt/year of cold rolling production. The first phase, already approved, with an investment of 320 million USD will consist of a cold rolling shop, with a Sendzimir Mill, an annealing and pickling line, an skinpass and a finishing shop. The scheduled capacity of is 240,0000 Mt/year, out of which 182,000 will be of cold rolled products. The put into operation is scheduled for year 2011. ACERINOX has already a very important commercial presence in the area for many years, which will allow to channel the new factory productions. W have already mentioned that 17% of the Group activity is done in Asia.

STRATEGIC LOCATION

INDONESIA

PHILIPPINES

THAILAND

MALAYSIA

VIETNAM

SINGAPORE

MALAYSIA

SINGAPORE

MALAYSIA

SINGAPORE

MALAYSIA

SINGAPORE

LAND LOCATION

19

BAHRU STAINLESS will take part significantly in the development of Malaysia and its exports and also in the stainless steel markets of ASEAN area, contributing to offer closely competitive materials, produced with the highest quality levels. For ACERINOX Group, once this factory is completed, it will join the other three factories in Spain, United States and South Africa and will enlarge the installed capacity of the Group to 4.5 million Mt, which would be equivalent to 16.3% of the world production in year 2007. This decisions means a very important strategic step in the development of ACERINOX Group, improving the asset distribution, which is unique in the sector and placing us at a leading position in the stainless steel industry for the next years. From the last General Shareholders Meeting, apart from the decisions taking regarding the industrial and financial fields, already mentioned, we have also developed a deep internal re-estructuration intended to give more efficiency to our organisation and to guarantee a succession plan, which allow the two ideas mentioned at the beginning of my speech: continuity and team. In this sense, in ACERINOX S.A, a new Managing Director, Mr. Bernardo Velazquez, has been appointed and several departments of the Campo de Gibraltar Factory has been reorganised, the Raw Materials Purchasing Department and the central commercial and domestic market organisation. Likewise, in NORTH AMERICAN STAINLESS a new President and CEO has been appointed, Mr. Antonio Pacheco.

20

Regarding the informative transparency, with the Corporate Social Responsibility and the Corporate Governance, we have also design a plan which is being carried out and present in the proposals for your approval in this General Meeting. We have enlarged and improved the content of our information to the investment community, both external and the details that included in the annual report, which you are given today. We also include for the first time a Corporate Responsibility report, which we will be improving in the future. The Board of Directors has carried out a complete review of our situation concerning the complying with the proposals of the Unified Code of Good Governance, the Conthe Code. As a consequence of this review aimed to comply to the utmost with this recommendations, we have modified the Board of Directors Bylaws, the Appointment and Retributions Bylaws and the Audit Committee Bylaws. Among the proposals we present for their approval, two of them are particularly aimed to comply with these recommendations. One modification of the General Shareholders Meeting bylaws (11th proposal) and proposal to modify Article No. 15 of the Articles of Association (9th proposal), aiming to eliminate the vote limit to 10%. This elimination implies the respect to the principle that each share gives right to one vote, which is recommended by the codes of good governance that have been established in a lot of countries. Regardless of the trends and the need to rule the good governance of the listed companies, I think that the good governance has been a constant in ACERINOX, to which I have been devoted since 1970 in all the positions of responsibility I have been holding in the Group. It is my commitment to all of you that, in the new responsibilities I take today, myself and the rest of the persons who depend on me, exercise the best possible governance for the Group.

ACERINOX GROUPACERINOX GROUP

21

Now, I would like make reference to those who leave us. Our Chairman, Mr. José María Aguirre, after so many year as a member of ACERINOX Board and who has held the position of Chairman during the last year. He as been an exceptional Chairman in this transitional period, who has behaved with an enormous sensitivity and delicacy, for which we feel deeply grateful. Mr. Marcelino Oreja, who is one of the most important figures in Spain and Europe during the second have of the 20th Century and the beginning of the 21st century. For us, he is also one of the most interesting persons, who has helped us so much with his nearness and great sense. I would also like to thank Mr. Nariyoshi, with whom we have worked so closely, and I hope he will go on being in touch with us form his new position in Nisshin Steel. Likewise, I would like to welcome Mrs. Amparo Moraleda, Mr. Braulio Medel and Mr. Hayakawa, who will join the Board Meeting after this General Shareholders Meeting and to whom we wish all the success in the carrying out of their new responsibilities. I would like to finish this speech, thanking all of you for your attention and constant support, without which we could not have reach our current position in our sector.

22