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

IBH REPORTS THIRD QUARTER 1998 RESULTS (April-June)

NOTE: Due to the fact that IBH did not exist in 1997, the first nine months and third quarter 1998 financial results of IBH included in this report are compared to pro-forma statements for the corresponding periods in 1997. All the comparisons included in this report refer to such pro-formas. CARACAS, JULY 30, 1998... International Briquettes Holding (IBH), producer of Hot Briquetted Iron, reported sales for the third quarter of fiscal year 1998 of US$ 22.4 million, according to the financial statements prepared using US GAAP. This represents a slight increase when compared to the sales of US$ 22.1 million reported in the same period last year. Operating income totaled US$ 2.2 million compared to US$ 3.3 million for the comparable quarter of the preceding fiscal year. For the first nine months of the 1998 fiscal year, sales of IBH reached US$ 66.8 million compared to the US$ 61.9 million reported for the same period last year. Operating income for the period was US$ 8.9 million compared to US$ 11.8 million for the comparable period of the previous fiscal year. The reduction in operating margins is mostly attributable to a decrease in Venprecar's HBI prices. This reduction was due to high inventories of scrap and other scrap substitutes in the United States' and European markets as a consequence of the Asian crisis. Another factor that affected margins was an increase in gas prices which, by the month of June, had reached the maximum price of US$ 55 cents per million BTU as determined by the government.

VENPRECAR SALES aaa 3rd quarter 1997 3rd quarter 1998 % Change Local (MT) 118.156 76.744 -25,6% Exports (MT) 66.934 97.917 46,29% Total (MT) 185.090 174.661 5,63% aaa Average Price (US$/MT) 129,15 125,36 -2,93%

It is important to remember that IBH's financial statements consolidate the Venprecar subsidiary, which is 99.0% owned. The three companies owned through a 50-50 joint venture with BHP are reported using the equity method. For purposes of clarification, we present the IBH structure below:

IBH reported interest income of US$ 1.2 million for the third quarter of the 1998 fiscal year compared to the US$ 0.1 million reported in the pro-forma for the same period last year. The company generated interest income on the assets transferred by the Orinoco Iron Joint Venture partners, from US$ 40 million loaned to Orinoco Iron, and on the cash balances of Venprecar. For the quarter, equity participation in affiliates reported a loss of US$ 319 thousand, reflecting the performance of the companies under the Joint Venture: Orinoco Iron, Operaciones RDI and Brifer. The income statement for these companies is attached. The weighted average prices of HBI have fallen significantly due to high inventories of scrap and other scrap substitutes in the United States' and European markets. This decrease has been partially offset by the company's long term contracts, which yielded an average price for this quarter of $128.52/MT compared to spot prices of around $115.00/ MT.

OPERACIONES RDI SALES aaa 3rd quarter 1997 3rd quarter 1998 % Change Local (TM) 3.395 - -100,00% Exports (MT) 102.747 99.063 -3,58% Total (TM) 106.142 99.063 -6,67% aaa Average Price (US$/MT) 132,97 134,23 0,94%

The construction of the Orinoco Iron Project, a briquette plant with an installed capacity of 2.2 million tons per year, was started during the month of December 1997. This joint venture with the Australian company BHP will begin operations in the last quarter of 1999 using the FINMET technology. As of June 30, the project was on schedule and 41.4% completed, with a committed investment of US$ 522.6 million. International Briquettes Holding (IBH) produces iron ore briquettes mainly for sale in foreign markets. The company holds 98.9% of Venprecar and 50.0% of Operaciones RDI. Its operations are strategically located to take advantage of the low costs of the most important inputs such as iron ore and natural gas. Note: Financial statements are prepared using USGAAP. Financial statements in constant bolivares are available on request from the Investor Relations Department.

Note:
· The Balance for the Joint Venture is available on resquest from the Investor Relations Department