As announced in "Reduction of 'Capital Reserve' Amount to be Increased as a Result of Share Exchange, and Transfer of the Amount to Other Capital Surplus" dated July 30th 2012, Nippon Steel & Sumitomo Metal Corporation has reduced the amount of "Capital Reserve" and transferred the said amount to "Other Capital Surplus" upon the effectuation of a share exchange with Sumitomo Metal Industries Limited on October 1st 2012, as follows:

Amount of Reduced Capital Reserve:
JPY 247,647,812,521, equivalent to the amount of Capital Reserve which increased as a result of the Share Exchange

The specific amount of Capital Reserve which increased as a result of the Share Exchange was determined as JPY 247,647,812,521 as a result of calculation in accordance with applicable rules (Article 39 of the Ordinance on Accounting of Companies), based on the market value of the Company's shares delivered in consideration for the Share Exchange.

The reduction in the amount of Capital Reserve resulted in reducing the amount of Capital Reserve which increased as a result of the Share Exchange upon the effectuation thereof.

Accordingly, the amount of Capital Reserve after reduction is JPY 111,532,297,171, same as the amount of the Company's Capital Reserve immediately prior to the Share Exchange.

Source - Nippon Steel & Sumitomo Metal Corporation

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