Cogent Power announces price increase for Electrical Steels from July 2008

20 May 2008

The basic price increase, which will apply to all grades of non-oriented electrical steel manufactured at Surahammars Bruks AB, Cogent’s business in Sweden, and for delivery in Scandinavia and across mainland Europe will be 230 euros/metric tonne (or local currency equivalent). In some other markets including the UK higher increases will be applied to reflect changes in relative currency values of around 10 percent since prices were last agreed.

Non-oriented electrical steel prices are usually negotiated on a half yearly basis and this increase covers cost changes on hot rolled coil related to raw materials that have occurred since the start of 2008. Customers are being contacted directly in respect of this announcement.

This price change does not affect grain oriented electrical steels, produced at Cogent’s business at Orb Electrical Steels in South Wales, where customers are already being contacted individually in respect of increases in pricing for the second half of 2008.

Corus is Europe's second largest steel producer with annual revenues of over £11 billion and a crude steel production of about 20 million tonnes. With main steelmaking operations primarily in the UK and the Netherlands, Corus provides innovative solutions to the construction, automotive, packaging, mechanical engineering and other markets worldwide. Corus is a subsidiary of Tata Steel, the world's sixth largest steel producer. With the recent acquisition of Corus, the combined enterprise has an aggregate crude steel production capacity of around 28 million tonnes and over 82,000 employees across four continents.

Ends

For further information, please call:

Annanya Sarin, Corporate Relations Tel. +44 (0) 20 7717 4532

Bill Ford, Cogent Power Tel. +44 (0)1633 294573