Sumitomo Metal Industries Limited announced that the board of directors, at a meeting held on August 30th 2012, made a resolution to acquire its own shares, pursuant to the Articles of Incorporation based on the provision of Item 1 of Article 459 of the Companies Act, and to cancel its own shares, pursuant to the Article 178 of the Companies Act.

1. Reasons for acquisition and cancellation of own shares
Nippon Steel Corporation, which holds Sumitomo Metals' shares, gave notification of its intention to sell the shares in the market as its initial objective of deepening the business alliance has been achieved and the business integration of both companies is scheduled to be conducted on October 1st 2012.

Sumitomo Metals will therefore acquire its own shares in a method that allows the company to avoid impacts on the demand-supply balance of its shares.

In addition, Sumitomo Metals will cancel those own shares with the aim of eliminating concerns over dilution.

2. Particulars related to the acquisition.

Type of shares to be acquired:
The Company's common stock

Number of shares to be acquired:
Up to 500 million shares (10.79% of the total shares issued and outstanding excluding treasury shares)

Total acquisition amount:
Up to JPY 75 billion

Acquisition period:
From August 31st 2012 to September 25th 2012

Acquisition method:
To use Off Auction Own Share Repurchase Trading (ToSTNeT-3)

3. Cancellation
Type of shares to be canceled:
The company's common stock

Number of shares to be canceled:
Total shares of the company's own shares that are acquired as in section 2 above.

Planned date of cancellation:
September 28th 2012

Holding of the Company's treasury shares as of July 31st 2012

Number of issued and outstanding shares (excluding own shares):
4,635,662,621 shares

Treasury shares:
170,311,617 shares

Source - Sumitomo Metal Industries Limited

(www.steelguru.com)