SHAREHOLDERS MEETING ENLARGED VÍTKOVICE STEEL’ S SUPERVISORY BOARD

Today, during an extraordinary shareholders meeting, the shareholders of VÍTKOVICE STEEL unanimously approved changes in the Company’s Articles and also changes in the composition of the Supervisory Board, they approved also the report on the Company’s results in 2004 as presented at the meeting and they approved also contracts for performance of the function of a member of the Supervisory Board and also of a member of the Board of Directors of the Company.

In line with the approved changes in the Articles, the Company’s Supervisory Board noted significant changes as the number of members in the Board has increased from 6 to 9 members with a term of 5 years. Dr. Jirí Chuchro, the current Vice-Chairman of the Supervisory Board representing OSINEK, a. s. resigned on January 26, 2005. Another two members, i.e., Ing. Ivo Štepán and Ing. Libor Novák also representing OSINEK, a. s., were replaced based on the decision of the shareholders. Ing. Jirí Stanek, CEO and Vice-Chairman of the Board of Directors of OSINEK remains as the Chairman of the Supervisory Board and the members elected by the employees, i.e., Ing. Pavel Makový and Ing. Rostislav Fromelius also remain as members. The shareholders approved the new members as follows: Ing. Jan Škurek, NPF CzR and a member of the Board of Directors of OSINEK; Jan Nedvídek, B.A., NPF CzR; Ing. Jaroslav Kubovic, MF CzR; JUDr. Radmila Kleslová, Ministry of Industry and Trade; Antonín Hanzalík, MF CzR. In line with the law, the remaining ninth member of the Board shall be elected by the employees in the next term.

All changes in the composition of VÍTKOVICE STEEL‘s Supervisory Board are connected with the upcoming privatization of the Company. The current owners, i.e. OSINEK, who is a subsidiary of the National Property Fund (NPF), currently hold two votes in the Board, another four votes belong to the representatives of the National Property Fund, Ministry of Finance (MF), and Ministry of Industry and Trade CzR. Another three chairs are reserved for representatives of employees of VÍTKOVICE STEEL.