OREANDA-NEWS. August 2, 2012. Nippon Steel Corporation (“Nippon Steel”) and Nippon Steel City Produce, Inc. (a wholly-owned subsidiary of Nippon Steel; “Nippon Steel City Produce”) announced that their respective Board of Directors passed a resolution today to cause Nippon Steel City Produce to succeed to a portion of Nippon Steel’s real- estate management/development business (the “Real Estate Management & Development Business) that Nippon Steel is carrying out at Oita Works and Kamaishi Works by way of a company split (an absorption- type split; the “Split”) with an effective date of September 5, 2012, and have entered into an absorption-type company split agreement.

Certain disclosure items/details have been abbreviated because the Split is a simplified company split, where a consolidated subsidiary is the succeeding company.

1.         Purpose of the company split

Nippon Steel has been conducting the Real Estate Management & Development Business as an ancillary business to its steelmaking business. It was decided, however, to cause Nippon Steel City Produce to succeed to the Real Estate Management & Development Business by way of a company split, in order to increase the consolidated corporate value of Nippon Steel Group by adjusting the line of business between each business segment.

2.         Outline of the company split

(1)        Schedule concerning the Split

Date of board of directors’ resolutions to approve the Split:     July 30, 2012

Date of execution of the company split agreement:       July 30, 2012

Planned date of the Split (effective date):         September 5, 2012

Note: The Split will be conducted without obtaining approvals at the respective shareholders’ meetings of Nippon Steel and Nippon Steel City Produce because it satisfies the requirements set forth in Section 3, Article 784 (simplified split regarding the splitting company) and Section 3, Article 796 (simplified split regarding the succeeding company) of the Companies Act.

(2)        Method of the Split

The Split is a corporate spin-off by an absorption-type split, with Nippon Steel being the splitting company and Nippon Steel City Produce being the succeeding company.

(3)        Calculation method of allotment under the Split

The Split is a company split between the parent and its wholly-owned subsidiary. Nippon Steel City Produce will not issue consideration to Nippon Steel pursuant to the Split.

(4)        Decrease in stated capital, etc. under the Split

There will be no changes in Nippon Steel’s stated capital or reserve pursuant to the Split.

(5)        Handling of share options and bonds with share options in connection with the Split

Nippon Steel has not issued share options or bonds with share options.

(6)        Rights and obligations assumed by the succeeding company

Pursuant to the Split, Nippon Steel City Produce will succeed to the following rights and obligations, etc. regarding the Real Estate Management & Development Business from Nippon Steel:

i.          Assets and rights owned by Nippon Steel for the Real Estate Management & Development Business Real estate and any depreciable assets incidental thereto, etc.

ii.         Agreements executed by Nippon Steel for the Real Estate Management & Development Business and any agreements incidental thereto

Land lease agreements, etc.

(7)        Expectation on performance of liabilities

Even after the effective date of the Split, the relevant companies believe that liabilities can be performed with respect to any liabilities incurred by Nippon Steel and Nippon Steel City Produce.