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 FISCAL YEAR 1998 RESULTS

CARACAS, DECEMBER 30, 1998... International Briquettes Holding (IBH), a company dedicated to the production and trade of iron-ore briquettes for the steel industry, reported consolidated sales in fiscal year 1998 of US$ 83.5 million, down 9% from US$ 91.6 million of the previous year. Operating income was US$ 8.7 million in comparison to US$ 15.6 million of the comparable pro forma of the preceding period. IBH´s net profit was US$ 14.3 million compared to US$ 19.6 million in the comparative 1997 Income Statement.

The reduction in the operating margin was mainly due to higher iron-ore and natural gas costs, and to a lower production during 1998 of 682,533 MT in comparison to 747,114 MT in 1997. The decrease in Venprecar's plant production was provoked by problems in the reactor and in the ceiling of the gas reformer. These problems were solved during the scheduled 45-day shutdown in October 1998 to enhance the plant's capacity from 715,000 to 800,000 MT/year. Even though prices of scrap and its substitutes fell drastically in the world market, the average price of Venprecar´s briquette during the period was of US$ 126.46/MT. This price was possible thanks to the long-term contracts signed previously with our clients.

The Asian crisis and the activity suspension of some steelworks around the world created an increase in the availability of raw materials for the production of steel: scrap, briquettes and pig iron. Experts and analysts suggest this is a temporary effect and that prices will begin to recover during the second half of 1999. There is no doubt this will have a negative effect in the price of the briquette for the period October 1998-September 1999. Because of the high availability of metalics in the international market when Venprecar´s expansion and maintenance works were completed, the shutdown was extended until January 4th, 1999 giving workers general end-of-year vacations.

Operaciones RDI The former Fior plant, now Operaciones RDI, registered a lower production due to the shutdown to change the bottom cap of one of the reactors. The unit costs of production were reduced thanks to the worker's productivity efforts. The average price in 1998 was US$ 133.02/MT, in comparison to US$ 133.47 recorded in the previous year.

ORINOCO IRON The joint project with The Broken Hill Proprietary (BHP) to construct a direct reduction plant of 2.2 million metric tons per year progressed according to schedule. As of September 30, 1998, US$ 560 million had been pledged, of which US$ 293 were already paid. Operations are planned to begin in December 1999. The foundations of the two modules were completed: this represented the 15 thousand cubic meters of concrete and the installation of 2,360 MT of structures in the areas of reactors and briquetting machines, reformers, pre-heating furnace, and briquettes and ultra-fines loading station. Also, the first two reactors of Module I were placed in position. Regarding working hours, of the total 8 million man-hours estimated for the completion of the work, 2,147,145 were worked.

WORK PROGRESS AS OF SEPTEMBER 30, 1998 Contratista aaa Progreso (%) VAI Main Equipment 88,5 LINDE Gas PLant 83,7 Koppern Briquetting machines 57,8 Otepi Detail Engineering 99,9 Inelectra Detail Engineering 78,3 Somor Civil Works 50,8 Aliva Stump Buildings 40,5 Hitachi Mounting 3,7 Heca Briquetting Building Structure 47,5 Dsd Spool Manufacturing 0,7 Vencemos Basauri Material Handling System Mounting 1,3 TOTAL AL 30/09/98 AAA 57,0

Orinoco Iron incorporates the FINMET technology that uses fines of iron-ore as raw material. Other direct reduction technologies (Midrex and HyL) use pellets and lumps. The advantage of FINMET is based on the reduction of production costs because it does not require the pelletizing process to use the fine mineral. International Briquettes Holding (IBH), was created during fiscal year 1997 to group all of Sivensa's HBI operations under a single division. The company, which is listed on the NASDAQ stock exchange, produces briquettes of iron-ore mainly for sale in foreign markets. IBH holds 98.9% of Venprecar and 50 % of the companies under the IBH/BHP Joint Venture umbrella: Operaciones RDI, Brifer and the Orinoco Iron Project. Its operations are strategically located to take advantage of the low cost of inputs such as iron-ore and natural gas available in Venezuela to produce HBI. Its current installed capacity of 1.2 million MT will be increased to 3.4 million MT by the year 2000 when the Orinoco Iron plant begins operations.