Dalmine SPA Faces Lawsuits Over Asbestos Liabilities ---------------------------------------------------- Published December 13, 2002 Three of Dalmine SPA's former managers have been named as defendants in a criminal proceeding, arising from the death of, or, in some cases, injuries to certain employees, before the Court of Bergamo, Italy, based on alleged negligence in having omitted to inform the employees working in a specific area of the mill of the risks connected with the use of asbestos and for having omitted to take any measures to prevent the risks connected with the use of asbestos in certain areas of Dalmine's manufacturing facilities from 1960 to the early 1980s. If its former managers are held responsible, Dalmine will be liable for damages to the 20 affected employees or their respective estates, as applicable. Dalmine is also a defendant in two civil proceedings for work-related injuries arising from its use of asbestos. The first of these proceedings was instituted on February 14, 2001, before the Court of Bergamo, Italy, by the estate of Luigi Pedruzzi, for damages in an aggregate amount of approximately E640,000. The other proceeding was instituted on June 5, 2001, before the Commissione Provinciale di Conciliazione of Bergamo, Italy, the mediation commission for the province of Bergamo, by the estate of Elio Biffi for an aggregate amount of approximately E770,000. In addition, some other asbestos-related out-of-court claims have been forwarded to Dalmine. The aggregate relief currently sought in out-of- court claims is approximately E3.8 million, although damages have not yet been specified in some cases. Of the 39 claims (inclusive of the 20 claims of the affected employees relating to the criminal proceeding and the out-of-court claims), 16 incidents have already been settled, either by Dalmine or by Dalmine's insurer. Dalmine estimates that its potential liability in connection with the remaining cases not yet settled or covered by insurance is approximately E6.3 million. This amount was recognized as a provision for liabilities and expenses as of June 30, 2002. While Dalmine may be subject to additional asbestos-related claims in the future, Tenaris, based on recent trends at Dalmine, does not believe that asbestos-related liabilities arising from claims already filed against Dalmine or from future asbestos-related claims are reasonably likely to be, individually or in the aggregate, material to its results of operations, liquidity and financial condition. COMPANY PROFILE Dalmine S.p.A. Piazza Caduti, 6 Luglio 1944, 1 Dalmine, Bergamo, Italy Phone: +39-035-56-0111 Fax: +39-035-5603827 http://www.dalmine.it Employees : 3,272 Revenue : $ 905,200,000 Net Income : $ (2,800,000) Assets : $ 860,200,000 Liabilities : $ 667,800,000 (As of December 31, 2001) Description: Dalmine produces drawn carbon steel pipes, fiberglass pipes, welded and seamless stainless steel pipes, and gas cylinders from seamless tubes. Customers include automobile makers, gas and water companies, bearing makers, industrial and medical gas companies, and power producers. Seamless pipe, the company's principal product, is made in sizes ranging from 12 mm to 711 mm in diameter. Seamless pipe, the company's principal product, is made in sizes ranging from 12 mm to 711 mm in diameter. Technit, the Netherlands-based holding company, owns about 47% of Dalmine.