From: Siderúrgica Venezolana "SIVENSA" S.A. Contacts: Isabel Camejo / Maury Bedoni Investor Relations Telephone: (02) 707.61.45 / 707. 64.49 Telefax: (02) 707.63.35 / 707. 64.26 E-mail: ir_dept@sivensa.com FOR IMMEDIATE DISTRIBUTION:

ORINOCO IRON'S PRODUCTION TEST STARTED UP

Caracas, May 29th, 2000… International Briquettes Holding, IBH, a company engaged in the production and marketing of iron-ore briquettes, announced the start-up of the first of the four train-reactors that comprise the Orinoco Iron direct reduction plant. This plant is being built by IBH in Puerto Ordaz, Venezuela, jointly with the Australian company The Broken Hill Proprietary, BHP Orinoco Iron's CEO, Alberto Hassan, announced that the production of briquettes started on Monday at 5:00 a.m. After 12 hours of continuous operation, both the pace of production and the physical-chemical quality of the product met the pre-operating standards of the process. The company indicated that, with the start-up of the first train, a period of adjustments to the operating parameters begins, and that the experience gained during this period will be very useful for the start-up of the three remaining trains, which will be progressively incorporated. Orinoco Iron uses the Venezuelan technology FINMETâ (Finos Metalizados), whose intellectual property rights are held jointly by Brifer (an affiliate of IBH) and the Austrian company VAI Technology. The advantage of FINMETâ over other direct reduction technologies is that production costs are lower because the process of pelletizing the fines is not necessary. Other technologies use pellets and lump to reduce iron-ore, which is more expensive. The plant has four train-reactors, each with 550,000 MT capacity. In addition, the gas plant receives methane gas and produces hydrogen and carbon monoxide through a cracking process. These gases act as reducing agents for the iron oxide. Sivensa and BHP considered the city of Puerto Ordaz to be the best location for the Orinoco Iron project, due to the comparative advantages found in the area: availability of iron ore, abundant gas, electric energy produced in the Guri dam, and access to the Atlantic Ocean through the Orinoco River. International Briquettes Holding, IBH (NASDAQ: IBHVF) owns 99% of Venprecar, a Midrex direct reduction plant with a current installed capacity of 815,000 MT. The joint venture with BHP includes the Orinoco Iron plant; Brifer, which holds the property rights for the FINMET technology and the 380,000 MT Operaciones RDI plant, which uses the FIOR technology. The highly specialized human resources of International Briquettes Holding accumulates more than 25 years of experience in different iron-ore reduction technologies. The Orinoco Iron plant will come to be known as the lowest cost producer in the world of its type by virtue of the significant savings achieved in the use of iron ore and gas, the main inputs.