March 6, 2002 National Steel Corporation ("National Steel"), a US subsidiary in which NKK holds a 53.5% ownership, filed for protection under Chapter 11 of the US Federal Bankruptcy Code in the United States Bankruptcy Court for Northern District of Illinois. This decision is made by National Steel's management and members of the board to secure liquidity in order to execute restructuring of National Steel in the current adverse situation of the US steel industry.

In accordance with this action, NKK's consolidated financial result for the current fiscal year is expected to decrease approximately 18 billion yen in net income (special charges of approximately 26 billion yen). Also, as for non-consolidated net income, 11 billion yen decrease is anticipated (special charges of approximately 19 billion yen). Although income statement of National Steel will be reflected to NKK's consolidated income statement of this fiscal year, assets and liabilities of National Steel will be removed from NKK's consolidated balance sheet. The extent of their impact on NKK's financial result is approximately the same as that of the case where consolidation between National Steel and US Steel is completed as the result of exercise of options under the "Option Agreement" which was entered into recently.

National Steel will proceed with the procedures necessary under Chapter 11 and promote restructuring under the fair supervision of the Bankruptcy Court. It has been agreed in principle that financial institutions will provide National Steel with DIP financing. It is expected that production, sales and other corporate activities will continue as before.

The present management of National Steel will remain in place. While NKK intends to carefully watch National Steel's progress, it has no intention of injecting new cash or capital into National Steel.

Considering the fact that National Steel has filed for the Chapter 11 protection, NKK will continue to talk with US Steel concerning the envisioned consolidation between National Steel and US Steel. NKK hopes that the planned consolidation will proceed during the Chapter 11 proceedings and intends to continue discussions with US Steel regarding a possible business alliance between US Steel and NKK.

For further information, please contact:
   Mr. Shinji Okutsu
   Public Relations Dept., NKK Corporation
   Tel: +81-3-3217-2140