ArcelorMittal Reports Third Quarter 2011 Results

Regulatory News:

ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Brussels, Luxembourg), MTS (Madrid)), the world’s leading steel company, today announced results1 for the three and nine month periods ended September 30, 2011.

Highlights:

• Health & Safety lost time injury frequency rate2 remained constant at 1.5x in 3Q 2011
• 3Q 2011 EBITDA3 increased by 11.4% to $2.4 billion compared to Q3 2010; EBITDA of $8.4 billion for first nine months 2011, 25.9% higher than first nine months 2010
• 3Q 2011 steel shipments of 21.1 Mt, 2.7% higher than 3Q 2010
• 3Q 2011 EBITDA per tonne of $114, 8.3% higher than 3Q 2010
• 3Q 2011 own iron ore production of 14.1 Mt, up 8.4% y-o-y; 6.7 Mt market price4 iron ore shipped (up 9.6% y-o-y)
• Net debt5 at September 30, 2011 of $24.9 billion as compared to $25.0 billion at June 30, 2011

Performance and industrial plan:

• $3.8 billion of annualized sustainable cost reduction achieved by the end of Q3 2011; on track to reach $4.8 billion by end of 2012
• New $1 billion asset optimization plan launched to generate sustainable EBITDA improvement; intention to close 2 blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium6
• Liberia iron ore phase 1 complete, with 2011 targeted production of 1 million metric tonnes, increasing to 4 million tonnes in 2012; phase 2 expansion to 15 million metric tonnes is in final decision phase
• ArcelorMittal Mines Canada expansion project on track to increase iron ore capacity from 16 Mt to 24 Mt by 2013

Outlook and guidance:

• EBITDA for 2H 2011 is expected to be above the comparable period of 2010
• Steel shipments in 4Q 2011 are expected to be lower than 3Q 2011 levels reflecting customers’ “wait and see” approach
• On track to increase FY 2011 own iron ore and coal production by 10% and 20%, respectively, as compared to 2010
• Net debt at year-end is expected to be higher than 3Q 2011 levels primarily due to the temporary investment in Macarthur
• Focus on core growth capex; full year 2011 capex therefore is expected to be below previous target of $5.5 billion

Financial highlights on the basis of IFRS1 (amounts in USD):

Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:

Despite weakening economic conditions, ArcelorMittal has reported EBITDA within the forecasted range. Uncertainties around the economic outlook have increased in recent weeks, impacting the confidence levels of our customers, so as we move in to the 4Q we are facing both volume and price pressures. However, our core profitability is resilient, supported by our growing mining business, our market leading value-added steel franchise and our management gains programs. As a result I remain confident that the Group’s EBITDA in the second half of 2011 will be above that of the second half of 2010”.

third quarter 2011 Earnings ANALYST Conference Call

Additionally, ArcelorMittal management will host a telephone conference call for members of the investment community to discuss the third quarter 2011 financial performance on:

The conference call will include a brief question and answer session with the Group Management Board. The presentation will be available on www.arcelormittal.com. In addition, a Questions and Answers document is provided on the website, under “Investors and Shareholders”, “Financial Results”.

Forward-Looking Statements

This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “target” or similar expressions. Although ArcelorMittal’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s Annual Report on Form 20-F for the year ended December 31, 2010 filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

About ArcelorMittal

ArcelorMittal is the world's leading integrated steel and mining company, with a presence in more than 60 countries.

ArcelorMittal is the leader in all major global carbon steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology. The Group also has a world class mining business with a global portfolio of over 20 mines in operation and development, and is the world’s 4th largest iron ore producer. With operations in over 22 countries spanning four continents, the Company covers all of the key industrial markets, from emerging to mature, and has outstanding distribution networks.

Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and well-being of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment. It takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change. ArcelorMittal is a member of the FTSE4Good Index and the Dow Jones Sustainability World Index.

In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing approximately 6 percent of world steel output. The Group's mining operations produced 47 million tonnes of iron ore and 7 million tonnes of metallurgical coal.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

For more information about ArcelorMittal visit www.arcelormittal.com.

ARCELORMITTAL THIRD QUARTER 2011 RESULTS

ArcelorMittal, the world’s leading steel company, today announced results for the three months and nine months ended September 30, 2011.

Corporate social responsibility performance

Health and safety - Own personnel and contractors lost time injury frequency rate2

Health and safety performance remained constant with a loss time injury frequency rate of 1.5x in the third quarter of 2011 as compared to the second quarter of 2011, with improvement in the safety performance of the Mining and Flat Carbon Americas segments, offset by weaker performance particularly in the Asia Africa and CIS and Distribution Solutions segments, as well as in the Flat Carbon Europe and Long Carbon Americas and Europe segments.

Health and safety performance improved for the nine months ended September 30, 2011 with a loss time injury frequency rate of 1.5x as compared to 1.9x for the nine months ended September 30, 2010, with improvements in the safety performance of all segments other than the Distribution Solutions and Flat Carbon America segments.

Key initiatives for the three months ended September 30, 2011

• ArcelorMittal secured entry to the Dow Jones Sustainability World Index (DJSI World). The Dow Jones Sustainability Index tracks the financial performance of the leading sustainability-driven companies worldwide. Securing recognition from this benchmarking index for the second time demonstrates ArcelorMittal’s commitment towards delivering safe, sustainable steel. ArcelorMittal remains a member of the two major sustainability and corporate responsibility indices: the DJSI World and the FTSE4Good Index series.
• A report jointly issued by ArcelorMittal, the European Metalworkers’ Federation, the International Federation of Metalworkers and United Steel Workers examines how the Company has worked together with unions throughout the world to achieve better safety results. The report concludes that the joint global Health & Safety Committee has helped build a positive workplace culture and improved collaboration and coordination between unions and management locally as well as globally.

Analysis of results for the nine months ended September 30, 2011 versus the nine months ended September 30, 2010

ArcelorMittal’s net income for the nine months ended September 30, 2011 was $3.3 billion, or $2.11 per share, as compared with net income of $3.7 billion, or $2.45 per share, for the nine months ended September 30, 2010.

Total steel shipments for the nine months ended September 30, 2011 were 65.2 million metric tonnes as compared with 63.8 million metric tonnes for the nine months ended September 30, 2010.

Sales for the nine months ended September 30, 2011 increased 24.8% to $71.5 billion as compared with $57.3 billion for the nine months ended September 30, 2010. Sales were higher during the first nine months of 2011 as compared to the first nine months of 2010 primarily due to higher average steel selling prices (20.8%) and slightly higher steel volumes (2.1%).

Depreciation expense for the nine months ended September 30, 2011 was $3.4 billion as compared to $3.3 billion for the nine months ended September 30, 2010.

Impairment expenses for the nine months ended September 30, 2011 were $103 million relating to a rolling facility in the Long Carbon Americas segment and the announced intention to close two blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium6. (Restoration, site cleaning, voluntary separation scheme (VSS) and other costs will be recorded when social dialogue has sufficiently progressed). This compared to impairment expenses of $144 million for the nine months ended September 30, 2010 relating to the sale of the Anzherkoye steam coal mine in Russia and pickling line in Liege, Belgium.

Operating income for the nine months ended September 30, 2011 was $4.9 billion, an increase of 51.2% as compared with operating income of $3.2 billion for the nine months ended September 30, 2010.

Operating performance for the nine months ended September 30, 2011 included a non-cash gain of $437 million related to unwinding of hedges on raw material purchases as compared to $266 million recorded in this respect in the nine months ended September 30, 2010.

Income from equity method investments and other income for the nine months ended September 30, 2011 was $443 million, as compared to $377 million for the nine months ended September 30, 2010. Income for the nine months ended September 30, 2011 included an impairment loss of $119 million as a result of the Company’s intention to withdraw from the joint venture with Peabody Energy to acquire ownership of Macarthur Coal. This charge reflects a higher carrying value of the investment in Macarthur, which included accrued share of net income. After considering dividends received and changes in exchange rate through October 25, 2011 (date of the divestiture announcement) the transaction was essentially cash neutral. 7

Net interest expense (including interest expense and interest income) for the nine months ended September 30, 2011 was higher at $1.4 billion, as compared to $1.0 billion for the nine months ended September 30, 2010 primarily due to higher level of borrowing.

As a result of hedging transactions undertaken by the Company in December 2010, the mark-to-market impact from the convertible bonds issued in the spring of 2009 has been minimized. Mark-to-market gains on the mandatorily convertible bond issued in December 2009 were $55 million in the first nine months of 2011. During the nine months ended September 30, 2010, the Company had recorded a non-cash gain of $720 million as a result of mark-to-market adjustments with respect to embedded derivatives in its convertible bonds issued in 2009.

Foreign exchange and other net financing costs were $1.1 billion for the nine months ended September 30, 2011 as compared to $0.7 billion for the nine months ended September 30, 2010.

ArcelorMittal recorded an income tax expense of $49 million for the nine months ended September 30, 2011, as compared to an income tax benefit of $1.0 billion for the nine months ended September 30, 2010.

Gain attributable to non-controlling interests for the nine months ended September 30, 2011 was $21 million as compared to a gain of $135 million for the nine months ended September 30, 2010.

Discontinued operations (i.e. the Company’s stainless steel operations, which were spun-off into a separate company, Aperam) in the nine months ended on September 30, 2011 amounted to a gain of $461 million, including $42 million of the post-tax net results contributed by the stainless steel operations prior to their spin-off. The balance of $419 million represents a one-time non-cash gain from the recognition through the income statement of gains/losses relating to the demerged assets previously held in equity. Discontinued operations for the nine months ended on September 30, 2010 amounted to a gain of $217 million.

Analysis of results for the three months ended September 30, 2011 versus the three months ended June 30, 2011 and the three months ended September 30, 2010

ArcelorMittal’s net income for the three months ended September 30, 2011 was $0.7 billion, or $0.43 per share, as compared with net income of $1.5 billion, or $0.99 per share, for the three months ended June 30, 2011 and net income of $1.4 billion, or $0.89 per share, for the three months ended September 30, 2010.

Total steel shipments for the three months ended September 30, 2011 were 21.1 million metric tonnes as compared with 22.2 million metric tonnes for the three months ended June 30, 2011, and 20.5 million metric tonnes for the three months ended September 30, 2010.

Sales for the three months ended September 30, 2011 decreased by 3.6% to $24.2 billion as compared with $25.1 billion for the three months ended June 30, 2011, and were up 22.6% as compared with $19.7 billion for the three months ended September 30, 2010. Sales were lower during the third quarter of 2011 as compared to the second quarter of 2011 primarily due to lower average steel selling prices (-1.7%) and lower volume of shipments (-4.9%).

Depreciation expense for the three months ended September 30, 2011 remained constant at $1.2 billion as compared to the three months ended June 30, 2011 and higher than the $1.1 billion for the three months ended September 30, 2010.

Impairment expense for the three months ended September 30, 2011 was $85 million relating to costs associated with the announced intention to close 2 blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium6, and nil for the three months ended June 30, 2011. Impairment cost for the three months ended September 30, 2010 of $26 million related to the impairment of a pickling line in Liege, Belgium.

Operating income for the three months ended September 30, 2011 was $1.2 billion, as compared with operating income of $2.3 billion for the three months ended June 30, 2011 and operating income of $1.0 billion for the three months ended September 30, 2010.

Operating income for the three months ended September 30, 2011 included a non-cash gain of $129 million relating to unwinding of hedges on raw material purchases as compared to non-cash gains relating to such unwinding of $189 million recorded in the three months ended June 30, 2011 and $85 million in the three months ended September 30, 2010.

Income from equity method investments and other income for the three months ended September 30, 2011 was $6 million, as compared to $289 million for the three months ended June 30, 2011 and $107 million and for the three months ended September 30, 2010. Income for the three months ended September 30, 2011 included an impairment loss of $119 million as a result of the Company’s intention to withdraw from the joint venture with Peabody Energy to acquire ownership of Macarthur Coal. This charge reflects a higher carrying value of the investment in Macarthur, which included accrued share of net income. After considering dividends received and changes in exchange rate through October 25, 2011 (date of the divestiture announcement) the transaction was essentially cash neutral. 7

Net interest expense (including interest expense and interest income) of $477 million for the three months ended September 30, 2011 was higher than the $457 million for the three months ended June 30, 2011. The net interest expense for the three months ended September 30, 2010 was $376 million.

As a result of hedging transactions undertaken by the Company in December 2010, the mark-to-market impact from the convertible bonds issued in the spring of 2009 has been minimized. Mark-to-market gains on the mandatorily convertible bond issued in December 2009 during the third quarter of 2011 were $59 million compared to mark-to-market losses of $4 million for the second quarter of 2011. During the three months ended September 30, 2010, the Company had recorded a non-cash gain of $24 million as a result of the embedded derivatives in its convertible bonds issued in 2009.

Foreign exchange and other net financing gains were $26 million for the three months ended September 30, 2011 as compared to

foreign exchange and other net financing losses of $443 million for the three months ended June 30, 2011. Foreign exchange and other net financing losses for the three months ended September 30, 2010 were $31 million. Foreign exchange and other net financing gains for the third quarter of 2011 were positively impacted by foreign exchange gains on euro denominated debt (6.6% appreciation of US$ as compared to 1.7% depreciation in the second quarter of 2011).

ArcelorMittal recorded an income tax expense of $154 million for the three months ended September 30, 2011, as compared to an income tax expense of $61 million for the three months ended June 30, 2011 and an income tax benefit of $576 million for the three months ended September 30, 2010.

Losses attributable to non-controlling interests for the three months ended September 30, 2011 was $31 million as compared with gains of $41 million and $16 million for the three months ended June 30, 2011 and September 30, 2010, respectively.

Capital expenditure projects

The following tables summarize the Company’s principal growth and optimization projects involving significant capital expenditures.

Completed Projects in Most Recent 4 Quarters

Ongoing (a) Projects

Projects through Joint Ventures

a) Ongoing projects refer to projects for which construction has begun and exclude various projects that are under development.

b) Iron ore mining production has commenced. 2011 iron ore production target of 1 million tonnes increasing to 4 million tonnes in 2012. The expansion to 15 million tonnes with forecast completion by 2015 (Phase 2) will require investment in a concentrator which is currently in the final stage of approval.

c) Saudi Arabia project delay from 2012 to 2013 primarily due to construction delays

Analysis of segment operations for the three months ended September 30, 2011 as compared to the three months ended June 30, 2011

As from January 1, 2011 the Company’s mining operations are reported as a separate operating segment. This change in segmentation reflects the changes in ArcelorMittal’s approach to managing its mining operations i.e. a dedicated mining management team. Accordingly, as required by IFRS, prior periods have been recast to reflect this new segmentation.

All raw materials consumed from ArcelorMittal mines that could practically be sold outside the Company are now reported at market prices. Production from “captive” mines (limited by logistics or quality) continues to be reported at cost-plus to the steel facilities. The principal impact of this change has been to increase the costs of raw materials consumed by the FCA and AACIS segments.

Flat Carbon Americas

Flat Carbon Americas crude steel production decreased 6.5% to 5.9 million tonnes for the three months ended September 30, 2011, as compared to 6.3 million tonnes for the three months ended June 30, 2011, due in part to production downtime in the North American operations.

Steel shipments for the three months ended September 30, 2011 were 5.7 million tonnes, 3.4% higher as compared to 5.5 million tonnes for the three months ended June 30, 2011 primarily due to improved auto demand in the NAFTA market.

Sales in the Flat Carbon Americas segment were $5.5 billion for the three months ended September 30, 2011, a marginal decline of 1.2% as compared to $5.6 billion for the three months ended June 30, 2011. Sales decreased primarily due to lower average steel selling prices (-5.3%) primarily in Mexico and Brazil due to slab shipments partially offset by higher steel volumes.

EBITDA in the third quarter of 2011 declined by 54.5% to $420 million as compared to $924 million in the second quarter of 2011, driven primarily by margin compression on account of lower average steel selling prices and higher costs.

Flat Carbon Europe

Flat Carbon Europe crude steel production amounted to 7.4 million tonnes for the three months ended September 30, 2011, a decrease of 6.1% as compared to 7.9 million tonnes for the three months ended June 30, 2011. Production decreased reflecting weaker market sentiment and seasonal slowdown.

Steel shipments for the three months ended September 30, 2011 were 6.4 million tonnes, a decrease of 10.9% as compared to 7.2 million tonnes for the three months ended June 30, 2011. Steel shipments decreased during the third quarter due to weaker market demand and seasonal slowdown.

Sales in the Flat Carbon Europe segment were $7.7 billion for the three months ended September 30, 2011, a decrease of 10.0% as compared to $8.6 billion for the three months ended June 30, 2011. Sales decreased primarily due to lower steel shipment volumes while average steel selling price remained relatively stable.

EBITDA for the three months ended September 30, 2011 was $367 million, a 42.3% decrease as compared to $636 million for the three months ended June 30, 2011, primarily driven by lower steel volumes and higher costs.

Operating results in the third quarter of 2011 include impairment expense of $85 million relating to costs associated with the announced intention to close 2 blast furnaces, sinter plant, the steel shop and continuous casters in Liege, Belgium6. They also include a $129 million non-cash gain relating to the unwinding of the hedges on raw material purchases, as compared to a non-cash gain of $189 million in the second quarter of 2011 and $85 million in third quarter of 2010.

Long Carbon Americas and Europe

Long Carbon Americas and Europe crude steel production amounted to 5.6 million tonnes for the three months ended September 30, 2011, a decrease of 12.5% as compared to 6.4 million tonnes for the three months ended June 30, 2011. Production was lower in the Americas primarily due to drawdown of inventory mainly in Brazil and the weaker market demand. Production was lower in Europe primarily due to seasonal effects.

Steel shipments for the three months ended September 30, 2011 were 6.0 million tonnes, a decrease of 3.0% as compared to 6.2 million tonnes for the three months ended June 30, 2011, particularly due to seasonal slowdown in Europe.

Sales in the Long Carbon Americas and Europe segment were $6.7 billion for the three months ended September 30, 2011, essentially flat as compared to the three months ended June 30, 2011.

EBITDA for the three months ended September 30, 2011 was $438 million, a 28.2% decrease as compared to $610 million for the three months ended June 30, 2011, primarily due to lower volumes and higher costs.

Asia Africa and CIS (“AACIS”)

AACIS segment crude steel production was 3.5 million tonnes for the three months ended September 30, 2011, a decrease of 8.8% as compared to 3.8 million tonnes for the three months ended June 30, 2011. The decrease in the third quarter of 2011 was primarily due to operational issues impacting the South African operations.

Steel shipments for the three months ended September 30, 2011 amounted to 3.0 million tonnes, a decrease of 9.0% as compared to 3.3 million tonnes for the three months ended June 30, 2011. Shipments were lower in the third quarter of 2011 primarily due to operational issues in South Africa.

Sales in the AACIS segment were $2.6 billion for the three months ended September 30, 2011, a decrease of 8.3% as compared to $2.9 billion for the three months ended June 30, 2011, primarily due to lower steel shipments, while average steel selling price remained relatively stable.

EBITDA for the three months ended September 30, 2011 was $284 million, 38.5% lower as compared to $462 million for the three months ended June 30, 2011. EBITDA during the third quarter of 2011 declined primarily due to lower steel shipments and higher costs.

Distribution Solutions8

Steel shipments in the Distribution Solutions segment for the three months ended September 30, 2011 were 4.6 million tonnes, flat as compared to the three months ended June 30, 2011.

Sales in the Distribution Solutions segment declined to $4.9 billion for the three months ended September 30, 2011 as compared to $5.0 billion for the three months ended June 30, 2011, due primarily to lower average steel selling prices (-2.9%).

EBITDA for the three months ended September 30, 2011 was $48 million, down 58.3% as compared to $115 million for the three months ended June 30, 2011, primarily due to lower margin from European operations due to seasonal slowdown.

Mining

(VI)

(a) Own iron ore and coal production excluding strategic long-term contracts

(b) Iron ore and coal shipments of market-priced based materials include the Company’s own mines, and share of production at other mines, and exclude supply under strategic long-term contracts

Own iron ore production (excluding supplies under strategic long-term contracts) increased 7.4% to 14.1 million tonnes for the three months ended September 30, 2011, as compared to 13.1 million tonnes for the three months ended June 30, 2011.

Total iron ore shipped during the third quarter of 2011 amounted to 13.5 million metric tonnes, an increase of 2.9% as compared to 13.2 million tonnes in the second quarter of 2011.

Own coal production for the three months ended September 30, 2011 remained constant at 2.1 million tonnes as compared to the three months ended June 30, 2011.

Total coal shipped during the third quarter of 2011 amounted to 2.1 million tonnes, essentially flat as compared to the second quarter of 2011.

EBITDA attributable to the Mining segment for the three months ended September 30, 2011 was $842 million, marginally higher as compared to $835 million for the three months ended June 30, 2011, primarily due to improved cost position driven by higher overall production volumes partially offset by lower market price volumes.

Liquidity and Capital Resources

For the three months ended September 30, 2011, net cash provided by operating activities was $0.8 billion, compared to net cash used in operating activities of $0.6 billion for the three months ended June 30, 2011. The cash flow used in operating activities for the third quarter of 2011 included a $1.0 billion investment in operating working capital as compared to a $2.8 billion investment in the second quarter of 2011. The working capital investment in the third quarter of 2011 primarily resulted from increased raw material costs. Rotation days10 increased to 73 days during the third quarter of 2011 from 71 days in the second quarter of 2011.

Net cash used in investing activities for the three months ended September 30, 2011 remained constant at $1.3 billion, as compared to the three months ended June 30, 2011. Capital expenditures increased to $1.3 billion for the three months ended September 30, 2011 as compared to $1.1 billion for the three months ended June 30, 2011. The Company will continue to calibrate its steel growth projects to evolving demand situations; at the same time the Company intends to maintain the growth capex in its mining business as these projects have more attractive return profiles. Accordingly the Company’s full year 2011 capital expenditure is expected to be below the previously targeted level of $5.5 billion (as compared to $3.3 billion in 2010).

Other investing activities in the third quarter of 2011 include an outflow of $31 million including the installment of $55 million for an 11% stake in Ostrava acquired in 2009, offset in part by the sale of various non-core fixed assets. Other investing activities in the second quarter of 2011 of $186 million included outflows of $67 million related to the acquisition of Cognor in Poland (Distribution Solutions) and $205 million for the acquisition of the Prosper coke plant in Germany, offset in part by net cash inflows of $86 million representing cash proceeds from the sale of certain non-core fixed assets and other recoveries.

Net cash provided by financing activities for the three months ended September 30, 2011 was $0.3 billion, as compared to cash provided by financing activities of $1.1 billion for the three months ended June 30, 2011. During the third quarter of 2011, the Company paid dividends amounting to $309 million as compared to $302 million in the second quarter of 2011. Dividends paid during the third quarter of 2011 included $17 million paid to minority shareholders. During the third quarter of 2011, the Company received a $250 million cash inflow from the increase in the privately placed mandatorily convertible bond (MCB) issued on December 28, 2009 by one of its wholly-owned Luxembourg subsidiaries.

At September 30, 2011, the Company’s cash and cash equivalents (including restricted cash and short-term investments) amounted to $2.8 billion as compared to $3.2 billion at June 30, 2011. During the quarter, net debt decreased by $0.1 billion to $24.9 billion as compared with $25.0 billion at June 30, 2011.

The Company had liquidity of $11.311 billion at September 30, 2011, a decline of $1.0 billion as compared with liquidity of $12.3 billion at June 30, 2011, consisting of cash and cash equivalents (including restricted cash and short-term investments) of $2.8 billion and $8.5 billion of available credit lines.

Update on management gains program and asset optimization plan

At the end of the third quarter of 2011, the Company’s annualized sustainable management gains increased to $3.8 billion as compared to $3.6 billion at the end of June 30, 2011 (excluding Aperam). The Company maintains its target (based on the revised plan excluding Aperam) to reach management gains of $4.8 billion from sustainable SG&A, fixed cost reductions and continuous improvement by the end of 2012.

On September 23, 2011, the Company announced the launch of a new asset optimization plan which will target a $1 billion improvement in annualized EBITDA by the end of 2012.

Recent developments

• On October 25, 2011, ArcelorMittal provided notice to Peabody Energy that, in accordance with the Co-Operation and Contribution Agreement between the two companies, following its acceptance of PEAMCoal Ltd’s offer for Macarthur Coal Ltd, it has terminated the Co-Operation and Contribution Agreement as provided for therein. ArcelorMittal will remain a shareholder in PEAMCoal until the termination arrangements are completed which is expected to be in approximately 90 days’ time. In taking this decision, ArcelorMittal has determined that it would no longer be appropriate to allocate substantial capital to the acquisition of a non-controlling, minority business interest. This is in accordance with the rights that ArcelorMittal originally negotiated with Peabody at the time the Co-Operation and Contribution Agreement was concluded.

Given the unanticipated level of acceptances into the offer, ArcelorMittal believes that it is more appropriate to focus its capital elsewhere in its business. ArcelorMittal considers that the capital commitment that would be required to retain its Macarthur interest and grow it materially further, exceeds what is appropriate to allocate to a business that ArcelorMittal does not fully control and consolidate. The unconditional PEAMCoal offer for Macarthur will not be affected by ArcelorMittal’s acceptance and will remain open until 7:00 p.m. (Brisbane time) on November 11, 2011 unless extended. ArcelorMittal will continue to perform its funding obligations to PEAMCoal until the termination takes effect as described in section 10.2(f) of PEAMCoal’s Bidder’s Statement for Macarthur.

• On September 30, 2011, ArcelorMittal extended to May 2015 the maturity of its $4 billion revolving credit facility that was due to expire in May 2013.
• On September 28, 2011, ArcelorMittal announced the increase by $250 million of its $750 million privately placed mandatorily convertible bond (MCB) issued on December 28, 2009 by one of its wholly-owned Luxembourg subsidiaries. This amendment to the MCB, which is mandatorily convertible into preferred shares of such subsidiary, was executed on September 27, 2011. The other main features of the MCB remain unchanged. The bond was placed privately with a Luxembourg affiliate of Credit Agricole Corporate and Investment Bank and is not listed.
• On August 1, 2011, ArcelorMittal published its Half-Year Report for the six month period ended June 30, 2011. In addition, ArcelorMittal filed with the U.S. Securities and Exchange Commission (www.sec.gov) a recast of its 2008-2010 Financial Statements, Business description and Management’s Discussion and Analysis to reflect the fact that its mining business is being reported as a segment since January 1, 2011.

For further information about these recent developments, please refer to our website www.arcelormittal.com

Outlook and guidance

The Company’s EBITDA in the second half of 2011 is expected to exceed the level achieved in the comparable period of 2010. The Company expects shipments in 4Q 2011 to be lower than 3Q 2011 levels, reflecting economic uncertainties leading to customers adopting a “wait and see” approach. Higher iron ore and coal volumes will continue to be a positive underlying driver. Own iron ore and coal production is expected to increase by 10% and 20% respectively, by the end of 2011 as compared to 2010.

In light of recent market uncertainty the Company is focusing on core growth capex. This will result in postponement of some planned steel investments. Accordingly, full year 2011 capital expenditure is expected to be below the previously targeted level of $5.5 billion.

Net debt at year end is expected to be higher than third quarter of 2011 primarily due to the temporary investment in Macarthur Coal (which will be reversed in the first quarter of 2012).

a) Total of all finished production of fines, concentrate, pellets and lumps.

b) Includes own mines and share of production from Hibbing (USA-62.30%) and Pena (Mexico-50%).

c) Includes two long term supply contracts with Cleveland Cliffs for periods prior to 2011. On April 8, 2011, ArcelorMittal announced that it had reached a negotiated settlement with Cliffs Natural Resources Inc. (“Cliffs”) regarding all pending contract disputes related to the procurement of iron ore pellets for certain facilities in the U.S. As part of the settlement, Cliffs and ArcelorMittal agreed to specific pricing levels for 2009 and 2010 pellet sales and related volumes. Accordingly as from the first quarter of 2011, this excludes the long term supply contract for which settlement was reached.

d) Includes long term lease - prices on a cost-plus basis and purchases made under the July 2010 interim agreement with Kumba (South Africa).

a) Includes strategic agreement - prices on a cost-plus basis

b) Includes long term lease - prices on a cost-plus basis

Note: Table excludes analysis on account of others and eliminations.

a) The volume variance indicates the sales value gain/loss through selling a higher/lower volume compared to the reference period, valued at reference period contribution (selling price–variable cost). The product/shipment mix variance indicates sales value gain/loss through selling different proportion of mix (product, choice, customer, market including domestic/export), compared to the reference period contribution.

b) The price-cost variance is a combination of the selling price and cost variance. The selling price variance indicates the sales value gain/loss through selling at a higher/lower price compared to the reference period after adjustment for mix, valued with the current period volumes sold. The cost variance indicates increase/decrease in cost (after adjustment for mix, one time items, non-steel cost and others) compared to the reference period cost. Cost variance includes the gain/loss through consumptions of input materials at a higher price/lower price, movement in fixed cost, changes in valuation of inventory due to movement in capacity utilization etc.

c) Non-steel EBITDA variance primarily represents the gain/loss through the sale of by-products.

d) Other represents the gain/loss through movements in provisions including write downs, write backs of inventory, onerous contracts, reversal of provisions, dynamic delta hedge on raw materials, foreign exchange etc as compared to the reference period.

Appendix 9 – End notes

1 The financial information in this press release has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). While the interim financial information included in this announcement has been prepared in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting”. Unless otherwise noted the numbers in the press release have not been audited. The financial information and certain other information presented in a number of tables in this press release have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this press release reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers.

2 Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.

3 EBITDA is defined as operating income plus depreciation, impairment expenses and exceptional items.

4 Market price tonnes represent amounts of iron ore and coal from ArcelorMittal mines that could be sold to third parties on the open market. Market priced tonnes that are not sold to third parties are transferred from the Mining segment to the Company’s steel producing segments at the prevailing market price. Shipments of raw materials that do not constitute market price tonnes are transferred internally on a cost-plus basis.

5 Net debt refers to long-term debt, plus short-term debt, less cash and cash equivalents, restricted cash and short-term investments.

6 The Company concluded that the assets subject to intended permanent idling were impaired and recorded an impairment loss of $85 million during the quarter. Restoration, site cleaning, voluntary separation scheme (VSS) and other costs will be recorded when social dialogue has sufficiently progressed.

7 The Company’s investment in Macarthur is accounted for under the equity method. As a result of the Company’s intention to withdraw from the joint venture with Peabody Energy to acquire ownership of Macarthur Coal, the Company recognized an impairment loss of $119 million in the third quarter of 2011. This charge reflects a higher carrying value of the investment in Macarthur, which included accrued share of net income. After considering dividends received and changes in exchange rate through October 25, 2011 (date of the divestiture announcement) the transaction was essentially cash neutral.

8 As from January 1, 2010 the Steel Solutions and Services segment has been renamed ArcelorMittal Distribution Solutions (AMDS).

9 There are three categories of sales: 1) “External sales”: mined product sold to third parties at market price; 2) “Market-priced tonnes”: internal sales of mined product to ArcelorMittal facilities at prevailing market prices; 3) “Cost-plus tonnes” - internal sales of mined product to ArcelorMittal facilities on a cost-plus basis. The determinant of whether internal sales are transferred at market price or cost-plus is whether or not the raw material could practically be sold to third parties (i.e. there is a potential market for the product and logistics exist to access that market).

10 Rotation days are defined as days of accounts receivable plus days of inventory minus days of accounts payable. Days of accounts payable and inventory are a function of cost of goods sold. Days of accounts receivable are a function of sales.

11 Includes back-up lines for the commercial paper program of approximately $2.7 billion (€2 billion).

12 In accordance with IFRS the Company has adjusted the 2009 financial information retrospectively for the finalization in 2010 of the allocation of purchase price for certain business combinations carried out in 2009. The adjustments have been reflected in the Company’s consolidated financial statements for the year ended December 31, 2010.

13 Total of all finished production of fines, concentrate, pellets and lumps (includes share of production and strategic long-term contracts).

14 ArcelorMittal Distribution Solutions shipments are eliminated in consolidation as they primarily represent shipments originating from other ArcelorMittal operating subsidiaries.

15 Changes in operating working capital are defined as trade accounts receivable plus inventories less trade accounts payable.

16 Capex includes the acquisition of intangible assets (such as concessions for mining and IT support).

17 Average steel selling prices are calculated as steel sales divided by steel shipments.

18 Shipments originating from a geographical location.

19 Includes Tubular products business.

20 Commercial paper is expected to continue to be rolled over in the normal course of business.

21 Gearing is defined as (A) long-term debt, plus short-term debt, less cash and cash equivalents, restricted cash and short-term investments, divided by (B) total equity.