From: International Briquettes Holding, IBH Subsidiary of Siderúrgica Venezolana SIVENSA S.A.C.A. Contacts: Mrs. Isabel Camejo / Mr. Maury Bedoni Investor Relations Telephones: (02) 707.61.45 / 707. 64.49 Telefax: (02) 762.99.38 / 707. 64.26 E-mail: ir_dept@sivensa.com FOR IMMEDIATE DISTRIBUTION:

IBH REPORTS FIRST QUARTER 2000 RESULTS

CARACAS, JANUARY 31, 2000. International Briquettes Holding (IBH), a company engaged in the production and marketing of iron-ore briquettes, reported consolidated sales for the first quarter of fiscal year 1999-2000 of $16 million, with an operating loss off $2.6 million. For the same period in the prior fiscal year, the company reported a net loss of $3 million, mainly due to the shutdown of the Venprecar plant for expansion and maintenance, and the decline in prices in the international metallics market. The spot market for metallics, represented by scrap, pig iron and iron-ore briquettes continued their rising trend. The positive impact of this trend on our products is reflected with a certain lag, since a major proportion of our sales are made under long-term contracts. Orinoco Iron The joint project with the Broken Hill Proprietary (BHP) to build a 2.2 million metric ton per year direct reduction FINMET® plant reached 90% completion on December 31. During the quarter, the following were put into service: the mineral reception and storage system; the natural gas pressure regulation station; the railway to transport the mineral from Ferrominera Orinoco and the common services systems. In addition, the ore drying system was put into service. It is necessary to mention that there were certain delays during the quarter due to the intense rain in the region and as a result of technical problems in the installation of the plant's pipes. It is estimated that plant startup for the first module will take place in March or April. Separately, the overvaluation of the bolivar has made labor costs more expensive in the final phases of construction and installation of equipment. Orinoco Iron is the largest investment made in Venezuela after the oil investments. The plant utilizes the FINMET® technology, which uses iron-ore fines as a raw material. Other direct reduction technologies use raw material such as pellets and lumps. The FINMET® advantage is that it reduces production costs because it is not necessary to pelletize the mineral fines in order to be able to use them. International Briquettes Holding (IBH) produces iron-ore briquettes for sale mainly in foreign markets. IBH holds 98.9% of Venprecar and 50% of Operaciones RDI. Its operations are strategically located to take advantage of the low cost of inputs needed to produce HBI such as iron-ore and natural gas. In association with the Australian company, BHP, IBH is currently building a 2.2. million MT/year plant in Puerto Ordaz, Venezuela that will use the FINMET® technology.