TERNIUM ARGENTINA S.A. — Interim / Quarterly Report 2000

May 17, 2000

SIDERAR SOCIEDAD ANONIMA

INDUSTRIAL Y COMERCIAL

FINANCIAL STATEMENTS

AT MARCH 31, 2000

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

FINANCIAL STATEMENTS
AT MARCH 31, 2000

CONTENTS

Summary information

Financial statements at March 31, 2000

Balance sheet

Statement of income

Statement of changes in shareholders' equity

Statement of sources and uses of funds

Notes and exhibits to the financial statements

Consolidated financial statements

Report on limited review

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

SUMMARY INFORMATION

In accordance with the regulations of Resolution No. 290/97 of the National Securities Commission, the Board of Directors has approved the following information corresponding to the nine-month period begun on July 1, 1999 and ended on March 31, 2000.

1. ACTIVITIES OF THE COMPANY

The result for the quarter ended March 31, 2000 has been a profit of $ 2.9 million, compared to the loss of $ 11.5 million recorded in the same period of the previous year. The net cumulative result for the nine months of the year has been a loss of $ 3.4 million.

Two-thirds of the improvement in the result for the quarter have been related to the lower loss by subsidiary companies and the rest to the improved operating result obtained. Comparison of price and average cost of sales in the quarter shows a drop of $ 4.5 and $ 21.8 per ton compared to the same quarter of the previous year.

During the quarter shipments totaled 478.7 thousand tons, with 280.8 thousand tons sold on the domestic market and 198.0 thousand tons sold for export. Total shipments were 2.2% higher than in the same quarter of the previous year, with a similar level of growth for both domestic market sales (2.5%) and export sales (1.6%).

Bank and financial debt was reduced during the quarter by $ 34.9 million, at the same time as terms were lengthened through the taking of a four-year loan with half-yearly interest maturities and capital repayment in five half-yearly installments as from February 2002.

Other significant events during the quarter included the start-up of an input purchasing system through electronic tendering and the signing of a contract for the construction and operation of an acid recovery plant at the General Savio Steel Center and the introduction of a similar plant at Ensenada.

On February 23, 2000 agreements were signed for the restructuring of the liabilities of Sidor and Amazonia. Under these agreements Siderar has committed resources indirectly for Amazonia in the amount of US$ 56.2 million, in the form of a combination of capital contributions and loans convertible into shares. The amount indicated includes US$ 27.9 million already recorded as principal and accrued interest on the balance sheet of the Company at December 31, 1999 under the heading of credits due from Amazonia and Sidor.

The loss in investments in related companies of $ 7 million in the quarter compares favorably with the loss of $ 16.2 million recorded in the same quarter of the previous year. Accumulated results at March 31, 2000 have been a loss of $ 26.3 million.

2. CONSOLIDATED EQUITY STRUCTURE (compared to the periods ended March 31, 1996, 1997, 1998 and 1999 - Amounts stated in thousands of pesos)

	3.31.00	3.31.99	3.31.98	3.31.97 (1)	3.31.96 (1)
Current assets	458,591	543,072	506,600	426,930	500,274
Non-current assets	889,321	908,837	923,710	706,929	697,634
Total	1,347,912	1,451,909	1,430,310	1,133,859	1,197,908
Current liabilities	351,380	443,819	529,837	335,368	556,980
Non-current liabilities	367,543	358,589	244,111	229,706	155,455
Sub-total	718,923	802,408	773,948	565,074	712,435
Minority interest in subsidiaries	55	-	89	-	-
Shareholders' equity	628,934	649,501	656,273	568,785	485,473
Total	1,347,912	1,451,909	1,430,310	1,133,859	1,197,908

1. In these periods the Company did not hold investments in subsidiaries requiring consolidation.

3. CONSOLIDATED INCOME STRUCTURE (compared to the periods ended March 31, 1996, 1997, 1998 and 1999 - Amounts stated in thousands of pesos)

	7.1.99 to 3.31.00	7.1.98 to 3.31.99	7.1.97 to 3.31.98	7.1.96 to 3.31.97 (1)	7.1.95 to 3.31.96 (1)
Result from ordinary operations	78,544	111,652	168,704	119,756	84,761
Financial result	(32,836)	(32,988)	(22,943)	(22,183)	(29,248)
Other ordinary income and expenses	(14,293)	(13,430)	(13,674)	(3,006)	(1,925)
Minority interest in subsidiaries	(4)	-	(19)	-	-
Result before tax	31,411	65,234	132,068	94,567	53,588
Taxes	(8,470)	(20,180)	(45,432)	(27,677)	(12,707)
Ordinary result	22,941	45,054	86,636	66,890	40,881
Result from investments in related companies	(26,349)	(41,484)	2	(1)	-
Other income and expenses	-	-	-	(7,646)	(5,813)
Net result for the period	(3,408)	3,570	86,638	59,243	35,068

1. In these periods the Company did not hold investments in subsidiaries requiring consolidation.

4. CONSOLIDATED STATISTICAL DATA (compared to the periods ended March 31, 1996, 1997, 1998 and 1999 - Amounts stated in thousands of tons)

	7.1.99 to 3.31.00	7.1.98 to 3.31.99	7.1.97 to 3.31.98	7.1.96 to 3.31.97 (1)	7.1.95 to 3.31.96 (1)
Shipments (2)	1,607	1,489	1,727	1,444	1,197
Domestic market	863	986	1,269	1,013	796
Exports	744	503	458	431	401
Production
Hot rolled steel	1,594	1,398	1,516	1,381	1,252
Cold rolled steel	1,066	1,022	939	872	887

1. In these periods the Company did not hold investments in subsidiaries requiring consolidation.
2. Includes 159.4, 199.6, 69.2 and 40.1 thousand tons of pig iron bars for the periods ended March 31, 1997, 1998, 1999 and 2000, respectively.

5. CONSOLIDATED RATIOS (compared to the periods ended March 31, 1996, 1997, 1998 and 1999)

	3.31.00	3.31.99	3.31.98	3.31.97 (1)	3.31.96 (1)
Liquidity	1.31	1.22	0.96	1.27	0.90
Indebtedness	1.14	1.24	1.18	0.99	1.47

1. In these periods the Company did not hold investments in subsidiaries requiring consolidation.

6. OUTLOOK

The situation of the Argentine economy has improved during the quarter as a result of several factors, including a drop in country risk premium, an agreement with the IMF and improvements in the international view of Latin American economies in general (with Mexico achieving investment grade).

On this basis it can be forecasts that there will be a moderate increase in the level of economic activity in coming months. In this context, and considering the inertia that exists in the sector, the Company estimates that an increase in the volume of shipments to the domestic market will only be seen in the next fiscal year.

On international markets the growth recorded by leading economies has been accompanied by stronger steel prices, so that improved conditions are foreseen for exports.

Buenos Aires, May 3, 2000

THE BOARD OF DIRECTORS

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

FINANCIAL STATEMENTS for the nine-month period ended March 31, 2000

Fiscal year No. 39 beginning on July 1, 1999

Legal address: Leandro N. Alem 1067, Buenos Aires

Main activity: Promotion, construction and operation of steel mills, production and marketing of steel, iron and steel products

From the by-laws and articles of incorporation:

Date of registration in the National Commercial Court of Record of First Instance: March 7, 1962

From the amendments:

Dates of registration in the National Commercial Court of Record of First Instance:

November 10, 1966;

October 10, 1967;

June 11, 1969;

June 9, 1971;

June 24, 1976;

July 1, 1977;

October 5, 1977;

June 26, 1980;

October 13, 1980;

March 29, 1982;

April 27, 1983;

April 11, 1984;

April 2, 1985;

May 7, 1986;

June 30, 1987;

August 10, 1992;

September 16, 1992;

July 28, 1993;

May 6, 1994;

January 5, 1995;

November 7, 1995;

May 28, 1996; and

March 11, 1997

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

FINANCIAL STATEMENTS for the nine-month period ended March 31, 2000

Registration number with the Superintendency of Corporations: 14510

Duration of the Company: Up to April 2, 2090

Capital: Par value shares of 1 peso and one vote each

Class	No. of votes per share	Subscribed and paid-in
		$
Common "A" shares outstanding	1	310,891,625
Common "B" shares outstanding	1	36,577,146
Total		347,468,771

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Registration number with the Superintendency of Corporations: 14510

BALANCE SHEET at March 31, 2000, compared to the same period of the previous year

	3.31.00	3.31.99			3.31.00	3.31.99
	$	$			$	$
ASSETS				LIABILITIES
CURRENT ASSETS				CURRENT LIABILITIES
Cash and banks (Note 4 a))	9,441,835	4,220,799		Accounts payable (Note 4 h))	110,793,386	96,968,307
Other investments (Exhibit D)	64,378	19,299,680		Short-term debt (Note 4 i))	200,582,156	292,552,471
Trade receivables (Note 4 b))	174,248,032	157,273,179		Social security and taxes (Note 4 j))	32,667,184	36,217,738
Other receivables (Note 4 c))	33,848,695	74,041,742		Other liabilities	3,681,756	1,360,653
Inventories (Exhibit F)	235,695,120	283,189,157		Provision for contingencies (Exhibit E)	3,610,885	6,444,487
Other assets (Note 4 d))	1,577,535	1,500,337
Total current assets	454,875,595	539,524,894		Total current liabilities	351,335,367	433,543,656
NON-CURRENT ASSETS				NON-CURRENT LIABILITIES
Trade receivables (Note 4 e))	5,089,583	1,903,973		Accounts payable (Note 4 k))	10,841,407	15,198,314
Other receivables (Note 4 f))	11,803,688	10,275,426		Long-term debt (Note 4 l))	337,899,217	315,394,849
Investments (Exhibit C)	109,811,806	145,135,420		Social security and taxes (Note 4 m))	4,833,716	3,600,439
Other investments (Exhibit D)	39,507,007	45,137,374		Other liabilities	375,697	-
Intangible assets (Exhibit B)	4,281,998	6,759,107		Provision for contingencies (Exhibit E)	13,592,715	10,584,000
Fixed assets (Exhibit A)	720,130,143	675,240,284
Other assets (Note 4 g))	2,311,850	3,845,772
Total non-current assets	892,936,075	888,297,356		Total non-current liabilities	367,542,752	344,777,602
				Total liabilities	718,878,119	778,321,258
				SHAREHOLDERS' EQUITY (as per respective statement)	628,933,551	649,500,992
Total assets	1,347,811,670	1,427,822,250		Total liabilities and Shareholders’ equity	1,347,811,670	1,427,822,250

The accompanying notes 1 to 14 and exhibits A to I are an integral part of these financial statements.

The report on limited review is issued as a separate document.

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Registration number with the Superintendency of Corporations: 14510

STATEMENT OF INCOME for the nine-month period ended March 31, 2000, compared to the same period of the previous year

	3.31.00	3.31.99
	$	$
Net income from sales	722,088,649	733,017,023
Cost of sales (Exhibit F)	(566,061,261)	(552,321,515)
Gross profit	156,027,388	180,695,508
Selling expenses (Exhibit H)	(22,362,026)	(19,048,001)
Administrative expenses (Exhibit H)	(56,180,249)	(57,136,801)
Financial and holding results
Generated by assets (Exhibit H)	5,966,170	9,036,835
Generated by liabilities (Exhibit H)	(39,247,820)	(40,928,000)
Other ordinary income and expenses (Exhibit H)	(14,285,615)	(10,947,422)
Income before taxes	29,917,848	61,672,119
Income tax provision charge	(8,459,602)	(19,713,599)
Ordinary income	21,458,246	41,958,520
Result from investments in subsidiaries and related companies (Note 8 e))	(24,866,450)	(38,388,985)
Net (loss) income for the period	(3,408,204)	3,569,535

The accompanying notes 1 to 14 and exhibits A to I are an integral part of these financial statements.

The report on limited review is issued as a separate document.

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Registration number with the Superintendency of Corporations: 14510

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY for the nine-month period ended March 31, 2000, compared to the same period of the previous year

	Capital stock			Non-capitalized contributions	Retained earnings				3.31.00	3.31.99
Item	Shares outstanding	Capital adjustment	Total	Premium on issue of shares	Legal reserve	Reserve for future dividends	Free reserve	Unappropriated retained earnings	Total shareholders' equity	Total shareholders' equity
	$	$	$	$	$	$	$	$	$	$
Balances at the beginning of the period	347,468,771	27,348,487	374,817,258	21,194,650	19,576,821	210,342,728	20,000,000	609,049	646,540,506	679,240,990
Approved by the Shareholders' Ordinary Meeting on September 30, 1998
- Distribution of profits
Hnos. Agustín y Enrique Rocca Foundation	-	-	-	-	-	-	-	-	-	(300,000)
Cash dividends	-	-	-	-	-	-	-	-	-	(33,009,533)
Approved by the Shareholders' Ordinary Meeting on September 30, 1999
- Release of the reserve for future dividends	-	-	-	-	-	(13,620,154)	-	13,620,154	-	-
- Distribution of profits
Legal reserve	-	-	-	-	30,452	-	-	(30,452)	-	-
Hnos. Agustín y Enrique Rocca Foundation	-	-	-	-	-	-	-	(300,000)	(300,000)	-
Cash dividends	-	-	-	-	-	-	-	(13,898,751)	(13,898,751)	-
Result for the period as per statement of income	-	-	-	-	-	-	-	(3,408,204)	(3,408,204)	3,569,535
Balances at March 31, 2000	347,468,771	27,348,487	374,817,258	21,194,650	19,607,273	196,722,574	20,000,000	(3,408,204)	628,933,551
Balances at March 31, 1999	347,468,771	27,348,487	374,817,258	21,194,650	19,576,821	210,342,728	20,000,000	3,569,535		649,500,992

The accompanying notes 1 to 14 and exhibits A to I are an integral part of these financial statements.

The report on limited review is issued as a separate document.

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Registration number with the Superintendency of Corporations: 14510

STATEMENT OF SOURCES AND USES OF FUNDS for the nine-month period ended March 31, 2000, compared to the same period of the previous year

	3.31.00	3.31.99
	$	$
CHANGES IN FUNDS
Funds at the beginning of the period (1)	20,899,186	5,901,151
(Decrease) increase in funds	(11,392,973)	17,619,328
Funds at the end of the period (1)	9,506,213	23,520,479
CAUSES OF CHANGES IN FUNDS
Ordinary income	21,458,246	41,958,520
Add: Items not representing funds disbursements
Depreciation of fixed assets	58,298,603	50,563,389
Depreciation of other non-current investments	-	23,191
Depreciation of other current assets	39,354	23,357
Amortization of intangible assets	1,850,193	1,440,369
Allowance for doubtful accounts	2,320,638	1,119,994
Income tax provision charge	8,459,602	19,713,599
Board of Directors' and Surveillance Committee's fees provision	924,000	924,000
Provision for contingencies	791,504	8,160,301
Funds generated by ordinary operations	94,142,140	123,926,720
Holding result in subsidiaries and related companies	(24,866,450)	(38,388,985)
Add: Items not representing funds disbursements
Holding result in subsidiaries and related companies	24,866,450	38,388,985
Funds generated (applied) to remaining operations	-	-
Funds generated by operations	94,142,140	123,926,720
Other causes of sources of funds
Net decrease (increase) in other receivables	16,434,605	(21,317,392)
Net decrease in inventories	21,801,582	116,623
Net decrease (increase) in other assets	1,634,065	(1,279,739)
Net increase (decrease) in trade payables	4,816,316	(40,125,996)
Net increase (decrease) in other liabilities	902,310	(1,418,213)
Total sources of funds - Carried forward	139,731,018	59,902,003

(1) Cash and banks plus other current investments

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Registration number with the Superintendency of Corporations: 14510

STATEMENT OF SOURCES AND USES OF FUNDS for the nine-month period ended March 31, 2000, compared to the same period of the previous year

	3.31.00	3.31.99
	$	$
CAUSES OF CHANGES IN FUNDS (Contd.)
Brought forward	139,731,018	59,902,003
Other causes of uses of funds
Net (increase) decrease in trade receivables	(4,363,084)	530,276
Net increase in investments	(57,212,262)	(1,570,287)
Net (increase) decrease in other non-current investments	(1,554,419)	8,768,512
Net increase in fixed assets	(28,230,957)	(46,378,487)
Net (decrease) increase in short and long-term debt	(32,625,362)	63,680,050
Net decrease in social security and taxes	(12,575,556)	(33,209,693)
Decrease in provisions for contingencies	(363,600)	(793,513)
Distribution of profits voted by Shareholders' Meeting on September 30, 1998	-	(33,309,533)
Distribution of profits voted by Shareholders' Meeting on September 30, 1999	(14,198,751)	-
Total uses of funds	(151,123,991)	(42,282,675)
(Decrease) increase in funds	(11,392,973)	17,619,328

The accompanying notes 1 to 14 and exhibits A to I are an integral part of these financial statements.

The report on limited review is issued as a separate document.

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Registration number with the Superintendency of Corporations: 14510

NOTES TO THE FINANCIAL STATEMENTS at March 31, 2000

NOTE 1 - MERGER

On May 3, 1999 the Board of Directors of the Company approved the merger through absorption of Comesi S.A.I.C. by Siderar S.A.I.C. as the successor company, effective April 1, 1999.

This merger was approved by the respective Extraordinary Shareholders’ Meeting held on June 15, 1999. On August 2, 1999 a final merger agreement was signed and on September 30, 1999 it was registered at the Public Registry of Commerce.

NOTE 2 - BASES FOR THE PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with General Resolution
No. 290/97 of the National Securities Commission.

NOTE 3 - ACCOUNTING STANDARDS

The most significant accounting standards are as follows:

3.1. Comparative information

The financial statements are presented in pesos in two columns in comparative form with those of the same period of the previous year. The balances at March 31, 1999 correspond to the financial statements of Siderar S.A.I.C. at that date; those at March 31, 2000 correspond to the merged company as mentioned in Note 1 to the financial statements.

3.2. Recognition of the effects of inflation

The financial statements have been prepared in constant currency, reflecting the overall effects of inflation through August 31, 1995. In accordance with General Resolution No. 290/97 of the National Securities Commission, restatement of the financial statements has been discontinued as from September 1, 1995.

NOTE 3 - ACCOUNTING STANDARDS (Contd.)

3.3. Valuation criteria

These financial statements have been prepared applying the valuation criteria established by General Resolution No. 290/97 of the National Securities Commission, as explained below:

1. Assets and liabilities in local currency without adjustment clauses are stated at their nominal value plus the accrued financial results up to the end of the period.
2. Assets and liabilities in foreign currency have been valued at the corresponding exchange rates in effect at the end of the period plus the accrued financial results up to that date.
3. Export reimbursements have been valued at the rates of exchange for the US dollar in force at the end of the period applied on par values in foreign currency and included in the Trade receivables - export reimbursement.

d) Advances to suppliers are stated at their current value.

e) Inventories have been valued at their replacement cost at the end of the period, applying the direct industrial cost method and including the indirect manufacturing expenses, except fixed assets depreciation and general expenses.

Materials have been valued at their replacement cost at the end of the period.

f) Property included under Other current assets has been valued at acquisition cost. Depreciation has been calculated by the straight-line method, using annual rates sufficient to extinguish their values by the end of their estimated useful lives.

Other non-current assets are valued at construction cost and include real property mostly for sale to personnel.

g) Steel spares and supplies, included in fixed assets, have been valued at the lowest of their restated cost value or recoverable value. The recoverable value has been calculated on the basis of the values of last purchases or quotations from suppliers on dates close to the end of the period.

Fixed assets at the Ensenada Plant which had been technically appraised (based on the valuation carried out at June 30, 1990) were restated for inflation as mentioned in Note 3.2.

NOTE 3 - ACCOUNTING STANDARDS (Contd.)

3.3. Valuation criteria (Contd.)

The remaining fixed assets have been valued at their restated cost. Depreciation of fixed assets has been calculated according to the straight-line method by applying annual rates sufficient to extinguish their values by the end of their estimated useful lives.

The aggregate net value of fixed assets does not exceed recoverable value.

1. The participation in other companies has been valued at proportional equity value based on the financial statements mentioned in Exhibit C to the financial statements, except for the investment in FO.GA.BA. S.A.P.E.M., which is valued at acquisition cost. In addition, the accounting standards adopted by subsidiaries and related companies have been unified with the accounting criteria followed by Siderar S.A.I.C. For purposes of translation into pesos of the financial statements of Prosid Investments Inc., the criteria established by Technical Pronouncement No. 13 of the Argentine Federation of Professional Councils in Economic Sciences were used.
2. Compañía Afianzadora de Empresas Siderúrgicas S.G.R. risk fund, recorded by Siderar S.A.I.C. under Other investments, corresponds to the portion attributable to that company considering the percentage contributions paid by the protecting partners of Sociedad de Garantía Recíproca and the value of the fund at March 31, 2000 (see Note 8.a) to the financial statements).

j) Plant reorganization and project analysis expenses are amortized by the straight-line method over the terms established for each of those items, none of which exceeds six years.

The goodwill (Comesi S.A.I.C.) corresponds to the difference between the value paid for the shares of Comesi S.A.I.C. and the proportional equity value at the date of purchase once the accounting values of the assets of the issuer have been adjusted by their respective current values. Goodwill is amortized by the straight-line method, over a maximum term of five years as from April 1997.

k) The Company has capitalized the financial costs from the projects for the modernization of its fixed assets.

To calculate the capitalizable financial charge the Company’s financing cost has been estimated by computing the results generated by all items making up its financing structure.

The abovementioned capitalization is made until the works-related assets giving rise to it become operative, and will be amortized applying the same criteria used for the assets constructed.

NOTE 3 - ACCOUNTING STANDARDS (Contd.)

3.3. Valuation criteria (Contd.)

Financial costs capitalized in the period amounted to $ 623,501.

1. The implicit financial components included in the assets, liabilities and income balances have been segregated, if significant.
2. The Company has set up the allowances and provisions considered necessary so that the value assigned to assets does not exceed their recoverable value and that the value assigned to liabilities is not lower than the value which may be claimable by third parties.

The provisions disclosed in current and non-current liabilities for a total of $ 17,203,600 were set up to meet potential contingencies.

1. As from August 1, 1995, the Company implemented a retirement benefit plan in favor of certain officials. Since that date the resulting liabilities are being accrued during the remaining years of service of the beneficiaries involved. At the end of the period in progress these liabilities are shown under "Social security and taxes" as a non-current liability, no debt being claimable as at that date.

In addition, the Company has taken out endowment policies which could be used to provide partial or total cover for these benefits.

1. Non-current credits and liabilities accrue interest at normal market rates.
2. The Company calculates income tax by applying a 35% rate on taxable profits.
   The tax on minimum notional income is applicable to the potential income from certain productive assets at the rate of 1% and supplements income tax, so that the Company’s tax liability will be equivalent to the higher of those taxes. However, if the tax on minimum notional income exceeds income tax in a given fiscal year, that surplus can be computed as payment on account of income tax in excess of the tax on minimum notional income arising in any of the following four fiscal years. At the end of the period, the Company did not set up any provision for tax on minimum notional income as it estimates that at the end of the year the charge for income tax will be higher than that for tax on minimum notional income.
3. The Company's Board of Directors considers that aggregate valuation of assets captions is less than their recoverable value.

NOTE 4 - COMPOSITION OF BALANCE SHEET ITEMS

	3.31.00	3.31.99
	$	$
CURRENT ASSETS
a) Cash and banks
Cash	117,708	199,798
Checks to be deposited	4,042,004	596,888
Banks	5,282,123	3,424,113
	9,441,835	4,220,799
b) Trade receivables
Accounts receivable	109,044,365	87,175,760
Related companies Sect. 33 - Law No. 19550 and amendments	1,336,486	4,701,153
Export reimbursements	3,521,912	3,500,540
Notes receivable	69,072,994	72,185,688
Allowance for doubtful accounts (Exhibit E)	(7,352,730)	(8,286,395)
Unearned interest	(1,374,995)	(2,003,567)
	174,248,032	157,273,179
c) Other receivables
Related companies Sect. 33 - Law No. 19550 and amendments	3,034,696	44,584,468
Advances and loans to personnel	3,156,453	3,234,100
Receivables from sale of real property	454,616	280,202
Solidarity contribution	-	32,346
Tax credits	15,928,196	7,417,320
Advances to suppliers	950,920	4,180,594
Expenses paid in advance	2,018,081	2,835,161
Sundry receivables	8,305,733	11,477,551
	33,848,695	74,041,742
d) Other assets (residual value)
Real property	1,577,535	1,500,337
	1,577,535	1,500,337
The depreciation of the period amounted to $ 39,354 (Exhibit H).

NOTE 4 - COMPOSITION OF BALANCE SHEET ITEMS (Contd.)

	3.31.00	3.31.99
	$	$
NON-CURRENT ASSETS
e) Trade receivables
Notes receivable	6,841,583	2,147,973
Allowance for doubtful accounts (Exhibit E)	(1,752,000)	(244,000)
	5,089,583	1,903,973
f) Other receivables
Related companies Sect. 33 - Law No. 19550 and amendments	1,035,404	-
Advances and loans to personnel	1,773,723	1,748,573
Receivables from sale of real property	6,365,492	4,648,774
Expenses paid in advance	2,450,777	3,558,059
Sundry receivables	178,292	320,020
	11,803,688	10,275,426
g) Other assets
Real property	2,311,850	3,845,772
	2,311,850	3,845,772
CURRENT LIABILITIES
h) Accounts payable
Ordinary suppliers	55,512,635	48,565,369
Related companies Sect. 33 - Law No. 19550 and amendments	1,318,043	3,839,752
Notes payable	52,723,142	42,868,882
Unearned interest	(1,900,050)	(2,258,617)
Advances from customers	3,139,616	3,952,921
	110,793,386	96,968,307

NOTE 4 - COMPOSITION OF BALANCE SHEET ITEMS (Contd.)

	3.31.00	3.31.99
	$	$
CURRENT LIABILITIES (Contd.)
i) Short-term debt
Financial	6,602,515	20,067,142
Import/export financing	214,927,441	300,264,156
Unearned interest	(20,947,800)	(27,778,827)
	200,582,156	292,552,471
j) Social security and taxes
Provision for income tax	7,956,000	19,580,000
Income tax withholding and solidarity contribution	(7,956,000)	(12,801,202)
Income tax advances	-	(6,778,735)
Provision for turnover tax	120,771	160,054
Wages and social security	28,980,344	31,181,264
Others sundry	3,566,069	4,876,357
	32,667,184	36,217,738
NON-CURRENT LIABILITIES
k) Accounts payable
Notes payable	12,306,356	16,231,825
Unearned interest	(1,464,949)	(1,033,511)
	10,841,407	15,198,314

NOTE 4 - COMPOSITION OF BALANCE SHEET ITEMS (Contd.)

	3.31.00	3.31.99
	$	$
NON-CURRENT LIABILITIES (Contd.)
l) Long-term debt
Import/export financing	267,907,055	240,430,837
Negotiable Corporate Bonds	110,000,000	110,000,000
Unearned interest	(40,007,838)	(35,035,988)
	337,899,217	315,394,849
m) Social security and taxes
Sundry	4,833,716	3,600,439
	4,833,716	3,600,439

NOTE 5 - RECEIVABLES AND PAYABLES: DUE DATES AND RATES

Captions	Up to 3 months	Between 3 and 6 months	Between 6 and 9 months	Between 9 and 12 months	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	Over 4 years	Total at 3.31.00	Total at 3.31.99
	$	$	$	$	$	$	$	$	$	$
Over due
Trade receivables - fixed rate	1,767,823	1,526,348	1,000,354	264,296	2,089,780	1,004,559	739,787	1,408,076	9,801,023	9,695,311
Total at 3.31.00	1,767,823	1,526,348	1,000,354	264,296	2,089,780	1,004,559	739,787	1,408,076	9,801,023
Total at 3.31.99	2,553,080	361,771	462,425	1,239,219	692,504	766,161	1,775,426	1,844,725		9,695,311
Not yet due
Deposits of funds - fixed rate	64,378	-	-	-	-	-	-	-	64,378	19,299,680
Deposits of funds - floating rate	-	-	-	-	-	-	-	5,787,607	5,787,607	4,039,145
Trade receivables - fixed rate	149,490,205	12,203,087	4,148,571	2,435,964	1,017,188	1,084,548	1,459,094	3,280,753	175,119,410	154,511,696
Trade receivables - without rate	3,521,912	-	-	-	-	-	-	-	3,521,912	3,500,540
Other receivables - fixed rate	3,010,488	698,523	643,556	550,843	1,535,566	935,966	663,440	4,955,095	12,993,477	61,983,948
Other receivables - floating rate	749,043	15,750	2,086,022	15,750	1,098,404	63,000	63,000	26,250	4,117,219	1,805,730
Other receivables - without rate	13,539,693	798,928	697,019	11,043,080	1,207,531	778,391	298,089	178,956	28,541,687	20,527,490
Total at 3.31.00	170,375,719	13,716,288	7,575,168	14,045,637	4,858,689	2,861,905	2,483,623	14,228,661	230,145,690
Total at 3.31.99	212,868,081	13,452,852	10,892,450	11,992,302	4,403,300	2,116,114	1,275,066	8,668,064		265,668,229
Accounts payable - fixed rate	41,298,222	7,441,896	10,342,466	7,167,506	1,529,043	1,364,303	1,346,032	775,038	71,264,506	74,574,767
Accounts payable - floating rate	1,058,325	-	832,427	-	1,664,855	1,664,855	1,664,855	832,426	7,717,743	9,391,731
Accounts payable - without rate	42,502,637	130,772	19,135	-	-	-	-	-	42,652,544	28,200,123
Short and long-term debt - fixed rate	69,167,114	30,244,887	34,841,146	59,533,250	42,634,610	19,864,861	11,817,476	3,786,944	271,890,288	327,572,519
Short and long-term debt - floating rate	3,716,700	747,336	1,834,020	497,703	87,163,448	129,503,039	41,295,179	1,833,660	266,591,085	280,374,801
Social security and taxes - without rate	11,114,988	89,113	14,384,448	7,078,635	-	-	-	4,833,716	37,500,900	39,818,177
Other debt - without rate	1,679,141	201,146	1,112,044	689,425	128,866	121,032	83,441	42,358	4,057,453	1,360,653
Total at 3.31.00	170,537,127	38,855,150	63,365,686	74,966,519	133,120,822	152,518,090	56,206,983	12,104,142	701,674,519
Total at 3.31.99	251,065,512	39,217,721	61,908,655	74,907,281	48,263,263	125,091,907	108,174,774	52,663,658		761,292,771

• The allowances for doubtful accounts and existing guarantees are sufficient to cover overdue trade receivables.
• Interest rates are not lower than market rates.

NOTE 6 - CHANGES IN ACCOUNTING PROCEDURES

The Company has followed the same criteria adopted in the previous year as regards valuations, depreciations and other items.

NOTE 7 - ENCUMBERED AND RESTRICTED ASSETS AND SURETIES GRANTED

Pledges have been set up on Company assets in guarantee of debts incurred as a result of the purchase of pledged assets amounting to US$ 2,158,850.

In accordance with the contracts signed as a result of the incorporation of Consorcio Siderurgia Amazonia Ltd., guarantees were granted as mentioned in Note 8.d) to the financial statements.

At period-end, the Company had become the guarantor of obligations for US$ 3,080,627.

NOTE 8 - INVESTMENTS IN OTHER COMPANIES

a) Compañía Afianzadora de Empresas Siderúrgicas S.G.R.

The Company has a 39.0539% interest in the capital stock of Compañía Afianzadora de Empresas Siderúrgicas S.G.R. in its capacity as protecting partner. The main purpose of this company is to grant guarantees to participating partners to facilitate or enable their access to the bank credit line for the purchase of national steel raw material and to provide technical, economic and financial advice to them. To do so, the Company has made a net contribution of $ 36,000,000 to the risk fund (see Exhibit D to the financial statements). The purpose of the risk fund is to realize guarantees to be granted to participating partners.

b) Ecocemento S.A.

On September 16, 1996 the Company and Compañía Argentina de Cemento Portland S.A. formed Ecocemento S.A., the purpose of which is the production and sale of blast furnace slag Portland cement, lime and related products. The shareholding is 15%, represented by 1,800 Class "B" shares of one vote and one peso par value each. Until the end of the period the Company had made contributions for $ 2,848,547. On March 1999, Ecocemento S.A. inaugurated its industrial plant.

NOTE 8 - INVESTMENTS IN OTHER COMPANIES (Contd.)

c) Comesi San Luis S.A.I.C.

On April 14, 1997, the Company acquired all of the shares held by the minority shareholders of Comesi San Luis S.A.I.C., 98% of which was held by Comesi S.A.I.C. at that date. The principal activity of Comesi San Luis S.A.I.C. is the production of cold or hot strip mill sheets either pre-painted or not, formed and/or skelped. The price paid for the 22,000 shares of par value $ 0.0001 each representing 2% of the capital stock of Comesi San Luis S.A.I.C. amounted to US$ 130,720. As a result of the merger with Comesi S.A.I.C. (see Note 1 to the financial statements), the Company acquired 100% of the shares of Comesi San Luis S.A.I.C. and consequently on June 29, 1999 Siderar S.A.I.C. sold the 1% equity participation for a total value of $ 42,900.

d) Prosid Investments Inc. - Consorcio Siderurgia Amazonia Ltd.

d.1) Prosid Investments Inc.

On June 30, 1998 Prosid Investments Inc. (Prosid) was incorporated in the British Virgin Islands with a capital of US$ 50,000 subscribed by the Company, for the purpose of making financial investments of all kinds and any other activity permitted under the laws of the Virgin Islands.

On November 11, 1998 the procedures were completed for the transfer of the 105,000,000 shares of Consorcio Siderurgia Amazonia Ltd. (Amazonia) to Prosid for a value of US$ 122,626,393, equivalent to the equity value of the shares contributed at that date, the capital of the latter company being increased to US$ 120,000,000, the balance of US$ 2,626,393 corresponding to the capital “surplus” account. As a result, the participation of the Company in Amazonia is indirect through the wholly-owned subsidiary Prosid.

To fulfill the commitments arising from the liability restructuring agreements of Sidor and Amazonia, Siderar made a contribution in Prosid amounting to US$ 57,212,262 through the transfer of the following receivables:

NOTE 8 - INVESTMENTS IN OTHER COMPANIES (Contd.)

d) Prosid Investments Inc. - Consorcio Siderurgia Amazonia Ltd. (Contd.)

d.1) Prosid Investments Inc. (Contd.)

	US$
Financial receivables from Sidor	22,805,124	(*)
Receivables from Amazonia	5,628,344	(**)
Disbursements and interest for the quarter January-March	28,778,794
Total	57,212,262

(*) US$ 22,420,590 at December 31, 1999.

(**) US$ 5,527,929 at December 31, 1999.

On February 18, 2000, the capital stock of Prosid was increased by US$ 32,000,000, and the difference between this amount and the mentioned contribution was charged to the capital “surplus” account.

In addition, on March 3, 2000, Prosid made contributions in Amazonia amounting to US$ 56,156,707 in the form of a combination of capital contribution amounting to US$ 25,392,624 and loans convertible into shares for US$ 30,764,083.

Considering the amounts capitalized at March 31, 2000, the change in the investment in the capital stock of Amazonia and the reduction by the latter in the number of outstanding shares, at the date of these financial statements the participation of Prosid in Amazonia totaled 29,831,335 shares, representing 19.76% of the capital stock. Assuming that the contributions made in Amazonia in the form of convertible loans will be fully capitalized in two years by the contributing partners, the participation would reach 21.15%.

All of the shares in Amazonia are pledged in guarantee of the bank loan obtained to acquire an investment in Siderúrgica del Orinoco C.A. (Sidor) and refinanced within the framework of the agreements reached.

NOTE 8 - INVESTMENTS IN OTHER COMPANIES (Contd.)

d) Prosid Investments Inc. - Consorcio Siderurgia Amazonia Ltd. (Contd.)

d.2) Amazonia

On November 13, 1997 Consorcio Siderurgia Amazonia Ltd. was set up, in which Siderar held a 17.5% share (subsequently transferred to Prosid - see Note 8.d.1)). Amazonia was set up to participate in the bid for Venezuelan company Sidor, which was privatized by the government of Venezuela.

On December 18, 1997 Amazonia was declared the winner in the bid for Sidor, which manufactures flat and non-flat steel products.

The offer for 70% of its shares was US$ 1,202,020,202, paid on January 27, 1998 with funds contributed by each consortium member in proportion to their participation (US$ 702,020,202) and bank financing obtained by Amazonia (US$ 500,000,000) guaranteed by the shares of Amazonia and those acquired from Sidor. For this reason Siderar made a capital contribution of US$ 122,853,535. According to the terms of the share purchase agreement an audit of the financial statements of Sidor was performed on January 27, 1998, as a result of which Corporación Venezolana de Guayana (C.V.G.) refunded to Amazonia on August 10, 1998 the sum of US$ 150,000,000, the maximum amount payable under the contract as an adjustment to the bid value.

As from the date of payment, Siderar became the guarantor of financial liabilities incurred by Sidor amounting to US$ 602,800,000 with maturities between 1999 and 2007. Of this amount, US$ 226,000,000 corresponding to the first six principal installments were refinanced under the agreements for the restructuring of the liabilities of Amazonia and Sidor, with maturities between 2002 and 2007 and secured by certain fixed assets of Sidor. Siderar is the guarantor of the mentioned liabilities according to its new participation in the capital stock of Amazonia for approximately US$ 119,100,000 at the date of these financial statements.

Furthermore, the regulations regarding the privatization of Sidor contained requirements regarding the consummation of the transaction for the sale of shares and obligations in the hands of Sidor and Amazonia. A guarantee has been granted in favor of Fondo de Inversiones

NOTE 8 - INVESTMENTS IN OTHER COMPANIES (Contd.)

d) Prosid Investments Inc. - Consorcio Siderurgia Amazonia Ltd. (Contd.)

d.2) Amazonia (Contd.)

de Venezuela (F.I.V.) and C.V.G. for a total aggregate amount of US$ 150,000,000 regarding compliance with the conditions and obligations established in the Sidor share purchase agreement for a period of five years as from the date of purchase of its shares.

A surety has been issued through financial institutions for a term of five years covering the obligations assumed by Amazonia with regard to:

• continuation of the operations of the flat and non-flat product lines of Sidor for 5 years as from the date of purchase at a production level equal to or exceeding 2,400,000 tons;
• the investment by Sidor of US$ 300,000,000 over three years as from the date of purchase, in addition to the investments that Sidor will be required to make for environmental matters;
• the retaining by the shareholders of Amazonia for a term of 5 years as from the date of purchase, directly or through wholly-owned subsidiaries, of at least 51% of the shares of Sidor granting them control over that company. For the same period at least one of the steel-manufacturing partners will have to maintain ownership of at least 10% of the shares in Amazonia, directly or through wholly-owned subsidiaries of such partner.

The value of this surety is reduced to US$ 125,000,000 and US$ 75,000,000 for the fourth and fifth years as from the date of purchase, respectively, as long as the creditor were not to have required the execution of any part of the bond in the immediately preceding year.

In turn, Siderar is the guarantor of compliance with all the obligations of the share purchase agreement. The agreements between the shareholders of Amazonia contemplate the limitation of these responsibilities in proportion to their respective shareholdings in the Company. Consequently, the maximum risk secured by Siderar (based on the indirect participation in the capital stock of Amazonia) which continues to be in effect at the date of theses financial statements was reduced to US$ 26,250,000, an amount that is not modified in spite of the change in the capital stock of Amazonia.

NOTE 8 - INVESTMENTS IN OTHER COMPANIES (Contd.)

d) Prosid Investments Inc. - Consorcio Siderurgia Amazonia Ltd. (Contd.)

d.3) Current situation of Sidor - Restructuring of liabilities in Amazonia and Sidor

Due to the negative conditions prevailing in the international steel market, the profound recession of the Venezuelan economy, the worsening of the international financial market conditions, the appreciation of the bolívar compared to the U.S. dollar and other adverse factors, Amazonia and Sidor have incurred substantial losses and technical non-compliance with loans and delays in certain payments related to the mentioned loans.

Sidor continues to adopt measures to face existing adverse conditions and the impact of conditions already overcome. At the same time, Amazonia and Sidor initiated negotiations to restructure their liabilities.

In February 2000, negotiations were concluded; the matters affecting Siderar mainly including:

• Resources committed by Sidor’s shareholders amounting to US$ 300,000,000, US$ 210,000,000 of which correspond to Amazonia in its capacity of holder of 70% of the shares in Sidor and US$ 90,000,000 to the F.I.V. and to companies controlled by C.V.G. US$ 210,000,000 were contributed to Amazonia by its shareholders, in the form of capital contributions and loans convertible into shares.
• Of the total of US$ 210,000,000 received by Amazonia from its shareholders, US$ 70,000,000 were appropriated to the subscription of shares in Sidor and US$ 140,000,000 to the exchange of Amazonia’s bank debt for Sidor’s subordinated debt. The bank debt originally obtained by Amazonia for the acquisition of shares in Sidor has therefore been reduced to US$ 252,554,332, and was refinanced under the agreements reached.
• Of the contribution of US$ 90,000,000 corresponding to F.I.V. and companies controlled by C.V.G., US$ 60,000,000 are implemented in the form of refinancing of past due debt and US$ 30,000,000 as a capital contribution.
• The conversion of US$ 11,026,000 of debt in Amazonia with its shareholders into a loan convertible into non-voting stock. The participation of the partners was established based on the debt held by Amazonia, US$ 5,628,344 corresponding to Siderar (transferred to Prosid - see Note 8.d.1) to the financial statements).

NOTE 8 - INVESTMENTS IN OTHER COMPANIES (Contd.)

d) Prosid Investments Inc. - Consorcio Siderurgia Amazonia Ltd. (Contd.)

d.3) Current situation of Sidor - Restructuring of liabilities in Amazonia and Sidor (Contd.)

• The commitment by the partners of Amazonia, except Sivensa, for the advance purchase, in 2007, of US$ 25,000,000 corresponding to Amazonia’s debt with the financial institutions participating in the restructuring, Siderar being the guarantor of US$ 6,000,000.

e) Result from investments in subsidiaries and related companies:

	3.31.00	3.31.99
	$	$
Subsidiaries
e.1.) Participation in the results of subsidiaries
Comesi San Luis S.A.I.C.	408,543	12,453
Prosid Investments Inc. (See Note to Exhibit C)	(25,833,281)	(42,997,857)
Comesi S.A.I.C. (2)	-	4,251,242
e.2.) Depreciation and inventory valuation adjustment
Comesi San Luis S.A.I.C. inventory valuation adjustment	720,275	-
Comesi S.A.I.C. fixed assets (2)	-	(1,351,860)
Comesi S.A.I.C. goodwill (2)	-	(3,462,123)
Comesi S.A.I.C. inventory valuation adjustment (2)	-	3,645,351
	(24,704,463)	(39,902,794)
Related companies
Compañía Afianzadora de Empresas Siderúrgicas S.G.R.	44,772	(57,611)
Ecocemento S.A.	(206,759)	-
Consorcio Siderurgia Amazonia Ltd. (1)	-	1,571,420
	(161,987)	1,513,809
	(24,866,450)	(38,388,985)

1. Results prior to the transfer of the shares to Prosid Investments Inc. (See Note 8.d.1) to the financial statements).
2. No period-end balances are shown as a result of the merger between Siderar S.A.I.C. and Comesi S.A.I.C. (See Note 1 to the financial statements).

NOTE 9 - RESTRICTIONS ON THE DISTRIBUTION OF PROFITS

In compliance with the Corporations Law, the By-laws and Resolution No. 290/97 of the National Securities Commission, 5% of the profit for the year should be transferred to the Legal Reserve after absorbing the negative results unappropriated at the beginning of the year, until such Reserve reaches 20% of the restated capital.

NOTE 10 - GLOBAL PROGRAM FOR NEGOTIABLE CORPORATE BONDS

On exercising the mandate and authorization granted by the Shareholders' Ordinary and Extraordinary Meeting held on September 29, 1994, the Board of Directors approved the Offering Circular of the global program for the issue of Negotiable Corporate Bonds for US$ 250,000,000, which has been authorized by the National Securities Commission.

On October 18, 1995 the first tranche of these Negotiable Corporate Bonds was issued for a total of US$ 60,000,000 to mature in two years, at a fixed annual interest rate of 11%. On October 20, 1997 all the notes issued were redeemed.

On July 31, 1998 a new tranche was issued for a total of US$ 110,000,000 with six-monthly maturities in January and July 2002 and 2003, at an interest rate of Libo plus a rising spread of 0.9%, 1.15% and 1.4% in the first three years, respectively. Interest will be payable quarterly.

Funds from this issue were used as follows:

	US$
Settlement of bank and financial debt	109,130,000
Corporate Bonds issuing expenses	870,000
Total issued	110,000,000

NOTE 11 - COMMITTED INVESTMENTS

The Company has entered into agreements for future purchases of fixed assets for an amount of US$ 11,473,330.

NOTE 12 - RESOLUTION OF THE YEAR 2000 PROBLEM - INFORMATION NOT COVERED BY THE REPORT ON LIMITED REVIEW

No significant problems have arisen in any of the areas of the Company derived from the change of year from 1999 to 2000.

NOTE 13 - STATUS OF CAPITAL

The status of capital at March 31, 2000 is $ 347,468,771, which has been subscribed, paid-in and registered at the Public Registry of Commerce.

The last capital increase amounting to $ 35,666,000 was approved by the Shareholders' Ordinary and Extraordinary Meeting held on December 29, 1994 and registered at the Public Registry of Commerce on November 7, 1995.

The shareholders' equity at the end of the period amounted to $ 628,933,551 and the capital stock outstanding at that date to $ 347,468,771. Accordingly, the proportional equity value for each share of 1 peso par value amounts to $ 1.81 (one peso and eighty one cents).

NOTE 14 - EVENTS SUBSEQUENT TO PERIOD END

After March 31, 2000, no events, situations or circumstances which are not publicly known have occurred, which affect or could significantly affect the Company's equity and financial position.

The report on limited review is issued as a separate document.

	3.31.00										3.31.99
						D e p r e c i a t i o n
Main account	Values at the beginning of the period	Increases	Decreases	Reclassification	Values at the end of the period	Accumulated at the beginning of the period	Deletions for the period	For the period (1)	Accumulated at the end of the period	Residual value		Residual value
	$	$	$	$	$	$	$	$	$	$		$
Land	22,961,059	-	-	-	22,961,059	-	-	-	-	22,961,059		22,269,174
Industrial buildings and facilities	696,998,939	-	-	37,457,657	734,456,596	271,449,943	-	40,650,098	312,100,041	422,356,555		380,733,914
Machinery and equipment	367,711,602	-	-	8,979,778	376,691,380	245,421,063	-	15,674,631	261,095,694	115,595,686		91,942,016
Vehicles and means of transport	14,216,698	468,645	482,227	-	14,203,116	9,233,401	261,055	834,997	9,807,343	4,395,773		5,077,049
Furniture, general machinery and office supplies	16,499,713	-	-	422,063	16,921,776	12,443,312	-	1,138,877	13,582,189	3,339,587		3,887,771
Steel spares and supplies	76,953,687	-	4,776,610	-	72,177,077	-	-	-	-	72,177,077		78,289,741
Fixed assets in transit	2,705,376	-	1,112,180	-	1,593,196	-	-	-	-	1,593,196		1,044,328
Work in progress	88,213,233	32,319,425	-	(46,859,498)	73,673,160	-	-	-	-	73,673,160		90,662,241
Advances to suppliers	2,485,201	1,552,849	-	-	4,038,050	-	-	-	-	4,038,050		1,334,050
Total at March 31, 2000	1,288,745,508	34,340,919	6,371,017	-	1,316,715,410	538,547,719	261,055	58,298,603	596,585,267	720,130,143
Total at March 31, 1999	1,096,330,259	57,873,056	12,038,526	-	1,142,164,789	416,905,073	543,957	50,563,389	466,924,505			675,240,284

(1) See Exhibit H to the financial statements.

Note: The Company has considered as original value of technically appraised assets at June 30, 1990 the technical value restated as
indicated in Note 3.2. As a result, the depreciation rates of the different assets are not included as these vary according to the
different remaining useful lives assigned in that technical appraisal.

The report on limited review is issued as a separate document.

	3.31.00									3.31.99
					A m o r t i z a t i o n
Main account	Balance at the beginning of the period	Increases	Decreases	Balance at the end of the period	Accumulated at the beginning of the period	Deletion for the period	For the period (1)	Accumulated at the end of the period	Residual value	Residual value
	$	$	$	$	$	$	$	$	$	$
Reorganization plant and project analysis related costs	44,691,428	-	-	44,691,428	44,446,984	-	244,444	44,691,428	-	336,111
Goodwill (Comesi S.A.I.C.)	21,843,233	-	-	21,843,233	15,955,486	-	1,605,749	17,561,235	4,281,998	6,422,996
Total at March 31, 2000	66,534,661	-	-	66,534,661	60,402,470	-	1,850,193	62,252,663	4,281,998
Total at March 31, 1999	66,534,661	-	-	66,534,661	54,873,062	-	4,902,492	59,775,554		6,759,107

(1) See Exhibit H to the financial statements.

The report on limited review is issued as a separate document.

Denomination and type of shares	Issuer	Class	Par value	Amount	Percentage participation in capital stock	Restated cost value	Proportional equity value	Amount recorded at 3.31.00	Amount recorded at 3.31.99
						$	$	$	$
NON-CURRENT INVESTMENTS
Corporations Sect. 33 - Law No. 19550 and amendments
Subsidiaries
Shares	Comesi San Luis S.A.I.C.	Ordinary, one vote each	0.0001	1,089,000	99.0000	4,542,925	5,492,311	5,492,311	97,106
Shares	Prosid Investments Inc.	Ordinary, one vote each	1.0000	152,000,000	100.0000	179,838,655	101,926,728	101,926,728	79,628,536
Shares	Comesi S.A.I.C. (1)	-	-	-	-	-	-	-	42,097,275
Related companies
Shares	Compañía Afianzadora de Empresas Siderúrgicas S.G.R.	Ordinary, one vote each	1.0000	355,000	39.0539	355,000	358,761	358,761	297,475
Shares	Ecocemento S.A.	Ordinary, one vote each	1.0000	1,800	15.0000	2,848,547	2,641,667	2,641,667	2,683,739
Shares	FO.GA.BA. S.A.P.E.M.	Ordinary, one vote each	1.0000	10,000	0.0031	10,000	-	10,000	-
Others
Comesi S.A.I.C. fixed assets valuation adjustment (1)						-	-	-	26,210,827
Comesi S.A.I.C. inventory valuation adjustment (1)						-	-	-	(6,044,225)
Comesi San Luis S.A.I.C. inventory valuation adjustment						-	(617,661)	(617,661)	-
Irrevocable contributions to Ecocemento S.A.						-	-	-	164,687
						187,595,127	109,801,806	109,811,806	145,135,420

1. No balances at the end of the period are shown as a result of the merger of Siderar S.A.I.C. and Comesi S.A.I.C. (see Note 1 to the financial statements).

		Information about the issuer
			Latest financial statements
Denomination and type of shares	Issuer	Principal activity	Date	Period	Capital stock	Results	Shareholders’ equity	Date of approval by Board of Directors
					$	$	$
NON-CURRENT INVESTMENTS (Contd.)
Corporations Sect. 33 - Law No. 19550 and amendments (Contd.)
Subsidiaries
Shares	Comesi San Luis S.A.I.C.	Production of cold or hot rolled, pre-painted, formed and skelped steel sheets	3.31.00	9 months	110	412,670	5,547,789	5.2.00
Shares	Prosid Investments Inc. (1)	Financial investments of any type and any other activity permitted by laws applicable in British Virgin Islands	3.31.00	9 months	152,000,000	(25,833,281)	101,926,728	4.25.00
Related companies
Shares	Compañía Afianzadora de Empresas Siderúrgicas S.G.R.	Granting of guarantees to participating partners to facilitate or permit access to credits for the purchase of national steel raw material through the signing of contracts regulated by Law No. 24467	12.31.99	6 months	909,000	5,457	38,508,631	3.10.00
Shares	Ecocemento S.A.	Production and sale of Portland cement with blast furnace slag, lime and by-products	12.31.99	12 months	12,000	(1,378,393)	17,611,113	2.24.00
Shares	FO.GA.BA. S.A.P.E.M.	Granting of guarantees to PYMES operating in the province of Buenos Aires	12.31.99	12 months	3,238,400	2,586,094	52,205,946	3.16.00

(1) The criterion of the Company has been to calculate the value of its investment in Amazonia on the basis of the financial statements of the latter with a lag of three months. Nevertheless, for a better reflection of the economic reality of these financial statements, the equity and results of the Company have been adjusted for the estimated effect of the results of Amazonia for the period January 1 to March 31, 2000, for the reasons indicated in Note 8.d.3) to the financial statements.

The report on limited review is issued as a separate document.

	3.31.00					3.31.99
Main account	Balance at the beginning of the period	Increases	Decreases	Balance at the end of the period	Balance at the end of the period
	$	$	$	$	$
OTHER CURRENT INVESTMENTS
Sight deposits	4,607,663	-	4,543,285	64,378	126,566
Time deposits	12,597,455	-	12,597,455	-	19,173,114
Total at the end of the period	17,205,118	-	17,140,740	64,378	19,299,680
NON-CURRENT INVESTMENTS
Financial investments in insurance companies	4,134,959	1,652,648	-	5,787,607	4,039,145
Guarantee fund Compañía Afianzadora de Empresas Siderúrgicas S.G.R.
Net contributions	36,000,000	-	-	36,000,000	41,000,000
Allowance for doubtful accounts (Exhibit E) (1)	-	(2,280,600)	-	(2,280,600)	-
Real property	98,229	-	98,229	-	98,229
Total at the end of the period	40,233,188	(627,952)	98,229	39,507,007	45,137,374

1. Customers of Compañía Afianzadora de Empresas Siderúrgicas S.G.R. in collection process.

The report on limited review is issued as a separate document.

Items	Balance at the beginning of the period	Increases and recoveries (1)	Uses	Balance at the end of the period
	$	$	$	$
Deducted from current assets
* For doubtful accounts	8,567,166	(1,241,398)	(26,962)	7,352,730
Total at 3.31.00	8,567,166	(1,241,398)	(26,962)	7,352,730
Total at 3.31.99	7,096,416	1,199,994	10,015	8,286,395
Deducted from non-current assets
* For doubtful accounts	470,564	1,281,436	-	1,752,000
* For risk fund uncollectibility	-	2,280,600	-	2,280,600
Total at 3.31.00	470,564	3,562,036	-	4,032,600
Total at 3.31.99	324,000	(80,000)	-	244,000
Included in current liabilities
* For contingencies	3,135,616	838,869	363,600	3,610,885
Total at 3.31.00	3,135,616	838,869	363,600	3,610,885
Total at 3.31.99	1,553,699	5,684,301	793,513	6,444,487
Included in non-current liabilities
* For contingencies	13,640,080	(47,365)	-	13,592,715
Total at 3.31.00	13,640,080	(47,365)	-	13,592,715
Total at 3.31.99	8,108,000	2,476,000	-	10,584,000

1. See Exhibit H to the financial statements.

The report on limited review is issued as a separate document.

	3.31.00		3.31.99
	$	$	$	$
1) Inventory at the beginning of the period
Finished products	97,421,969		98,021,298
Production in process	61,517,796		86,029,429
Raw material	35,012,397		29,391,398
Materials	61,600,587		68,622,396
Advances to suppliers	1,943,953	257,496,702	1,241,259	283,305,780
2) Purchases of the period		268,380,887		311,318,444
3) Manufacturing expenses (Exhibit H)		282,793,585		246,086,448
Subtotal		808,671,174		840,710,672
4) Holding results (Exhibit H)		(6,914,793)		(5,200,000)
Subtotal		801,756,381		835,510,672
5) Inventory at the end of the period
Finished products	79,507,368		96,859,833
Products in process	49,489,407		86,157,907
Raw material	46,861,106		31,730,741
Materials	57,565,113		66,090,674
Advances to suppliers	2,272,126	235,695,120	2,350,002	283,189,157
Cost of sales		566,061,261		552,321,515

The report on limited review is issued as a separate document.

	3.31.00							3.31.99
Items	Foreign currency (1)	Amount in foreign currency	Exchange rate used	Amount in local currency	Foreign currency (1)	Amount in foreign currency	Amount in local currency
			$	$			$
ASSETS
CURRENT ASSETS
Cash and banks
Cash	US$	10,435	1.000000	10,435	US$	42,848	42,848
Checks to be deposited	US$	24,248	1.000000	24,248	US$	180	180
Banks	US$	139,201	1.000000	139,201	US$	35,120	35,120
Other investments
Sight deposits	US$	64,378	1.000000	64,378	US$	126,566	126,566
Time deposits	-	-	-	-	US$	19,173,114	19,173,114
Trade receivables
Accounts receivable	US$	109,044,365	1.000000	109,044,365	US$	87,175,760	87,175,760
Related companies Sect. 33 - Law No. 19550 and amendments	US$	1,336,486	1.000000	1,336,486	US$	4,701,153	4,701,153
Export reimbursements	US$	3,521,912	1.000000	3,521,912	US$	3,500,540	3,500,540
Notes receivable	US$	28,196,728	1.000000	28,196,728	US$	41,479,574	41,479,574
	EURO	2,180,081	0.956200	2,084,593	-	-	-
	Pt	9,504,873	0.005746	54,615	-	-	-
Receivables with exchange insurance in US$	EURO	6,453,999	1.029947	6,647,277	-	-	-
Allowance for doubtful accounts (Exhibit E)	US$	(7,352,730)	1.000000	(7,352,730)	US$	(8,286,395)	(8,286,395)
Unearned interest	US$	(1,374,995)	1.000000	(1,374,995)	US$	(2,003,567)	(2,003,567)
Other receivables
Related companies Sect. 33 - Law No. 19550 and amendments	US$	3,034,696	1.000000	3,034,696	US$	44,584,468	44,584,468
Receivables from sale of real property	US$	238,442	1.000000	238,442	US$	125,136	125,136
Advances to suppliers	-	-	-	-	US$	969,672	969,672
Expenses paid in advance	US$	2,018,081	1.000000	2,018,081	US$	2,835,161	2,835,161
Sundry receivables	US$	5,057,640	1.000000	5,057,640	US$	9,691,388	9,691,388
Total current assets - Carried forward				152,745,372			204,150,718

		3.31.00								3.31.99
Items		Foreign currency (1)	Amount in foreign currency		Exchange rate used	Amount in local currency	Foreign currency (1)	Amount in foreign currency	Amount in local currency
					$	$			$
ASSETS
Brought forward						152,745,372			204,150,718
NON-CURRENT ASSETS
Trade receivables
Notes receivable		US$	6,841,583		1.000000	6,841,583	US$	2,147,973	2,147,973
Allowance for doubtful accounts (Exhibit E)		US$	(1,752,000)		1.000000	(1,752,000)	US$	(244,000)	(244,000)
Other receivables
Related companies Sect. 33 - Law No. 19550 and amendments		US$	1,035,404		1.000000	1,035,404	-	-	-
Receivables from sale of real property		US$	669,846		1.000000	669,846	-	-	-
Expenses paid in advance		US$	2,450,777		1.000000	2,450,777	US$	3,558,059	3,558,059
Sundry receivables		US$	166,101		1.000000	166,101	US$	302,453	302,453
Other investments
Investments in insurance companies		US$	5,787,607		1.000000	5,787,607	US$	4,039,145	4,039,145
Guarantee fund Compañía Afianzadora de Empresas Siderúrgicas S.G.R.
Net contributions		US$	36,000,000		1.000000	36,000,000	US$	41,000,000	41,000,000
Allowance for doubtful accounts (Exhibit E)		US$	(2,280,600)		1.000000	(2,280,600)	-	-	-
Fixed assets
Advances to suppliers		US$	1,367,780		1.00000	1,367,780	US$	792,170	792,170
		DM	119,092		0.488763	58,208	DM	46,255	25,532
		Lit	276,558,704		0.000494	136,620	Lit	595,064,516	332,046
		FF	1,076,350		0.145593	156,709	FF	758,771	124,861
		EURO	150,330		0.956200	143,746	-	-	-
		£	9,758		1.591900	15,534	-	-	-
		-	-		-	-	S	649,730	50,931
Total non-current assets						50,797,315			52,129,170
Total assets						203,542,687			256,279,888

	3.31.00							3.31.99
Items	Foreign currency (1)	Amount in foreign currency	Exchange rate used	Amount in local currency	Foreign currency (1)	Amount in foreign currency	Amount in local currency
			$	$			$
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Ordinary suppliers	US$	3,405,565	1.000000	3,405,565	US$	3,487,913	3,487,913
Related companies Sect. 33 - Law No. 19550 and amendments	US$	1,318,043	1.000000	1,318,043	US$	3,839,752	3,839,752
Notes payable	US$	51,429,362	1.000000	51,429,362	US$	40,647,191	40,647,191
	Lit	541,993,939	0.000495	268,287	Lit	328,456,172	183,607
	DM	1,683,261	0.490416	825,498	DM	2,125,405	1,176,913
	£	40,829	1.595500	65,143	£	92,268	149,151
	-	-	-	-	S	6,483,979	511,372
	FF	149,187	0.146715	21,888	FF	176,694	29,274
	Skr	370,503	0.116590	43,197	Skr	370,505	45,388
	FB	1,266,913	0.023813	30,169	FB	233,610	6,325
	Pt	4,943,259	0.005763	28,488	Pt	1,231,100	8,012
	SFR	18,450	0.602168	11,110	SFR	13,538	9,180
	-	-	-	-	EURO	94,879	102,469
Unearned interest	US$	(1,900,050)	1.000000	(1,900,050)	US$	(2,258,617)	(2,258,617)
Advances from customers	US$	3,139,616	1.000000	3,139,616	US$	3,952,921	3,952,921
Short-term debt
Import/export financing	US$	53,918,982	1.000000	53,918,982	US$	158,551,553	158,551,553
	¥	57,741,489	0.009752	563,095	¥	1,757,191,175	14,853,537
	DM	56,364	0.490416	27,642	DM	63,409	35,112
	EURO	746,039	0.957700	714,482	-	-	-
Debt with exchange insurance in US$	¥	17,536,317,119	0.009107	159,703,240	¥	14,981,382,426	126,337,998
	-	-	-	-	DM	681,310	485,956
Unearned interest	US$	(19,221,236)	1.000000	(19,221,236)	US$	(26,208,855)	(26,208,855)
	¥	(52,725,492)	0.009752	(514,179)	¥	(114,181,237)	(965,174)
	EURO	(94,169)	0.957700	(90,186)	-	-	-
Unaccrued interest with exchange insurance in US$	¥	(122,591,108)	0.009154	(1,122,199)	¥	(71,548,326)	(604,798)
Total current liabilities - Carried forward				252,665,957			324,376,180

	3.31.00							3.31.99
Items	Foreign currency (1)	Amount in foreign currency	Exchange rate used	Amount in local currency	Foreign currency (1)	Amount in foreign currency	Amount in local currency
			$	$			$
Brought forward				252,665,957			324,376,180
NON-CURRENT LIABILITIES
Accounts payable
Notes payable	US$	12,306,356	1.000000	12,306,356	US$	16,231,825	16,231,825
Unearned interest	US$	(1,464,949)	1.000000	(1,464,949)	US$	(1,033,511)	(1,033,511)
Long-term debt
Import/export financing	US$	234,881,607	1.000000	234,881,607	US$	179,181,244	179,181,244
	¥	15,331,419	0.009752	149,512	¥	131,213,060	1,109,144
	DM	197,275	0.490416	96,747	DM	253,639	140,449
	EURO	2,776,641	0.957700	2,659,189	-	-	-
Debt with exchange insurance in US$	¥	3,534,796,385	0.008521	30,120,000	¥	7,920,792,079	60,000,000
Negotiable Corporate Bonds	US$	110,000,000	1.000000	110,000,000	US$	110,000,000	110,000,000
Unearned interest	US$	(39,639,567)	1.000000	(39,639,567)	US$	(33,926,844)	(33,926,844)
	¥	(15,331,419)	0.009752	(149,512)	¥	(131,213,060)	(1,109,144)
	EURO	(228,421)	0.957700	(218,759)	-	-	-
Total non-current liabilities				348,740,624			330,593,163
Total liabilities				601,406,581			654,969,343

(1) US$: United States Dollars; S: Austrian Schillings; Lit: Italian Lire; £: Pounds Sterling; DM: Deutsche Marks; FF: French
Francs; ¥: Yens; FB: Belgian Francs; Pt: Pesetas; Skr: Swedish Kronor; SFR: Swiss Francs.

The report on limited review is issued as a separate document.

				Financial and holding results			Total for the period ended
Items	Manufacturing expenses	Selling expenses	Administrative expenses	Generated by assets	Generated by liabilities	Other income and expenses	3.31.00	3.31.99
	$	$	$	$	$	$	$	$
Surveillance Committee's and Directors' fees	-	-	924,000	-	-	-	924,000	924,000
Salaries, wages and social security	92,587,501	7,582,748	26,753,149	-	-	-	126,923,398	127,086,167
Office expenses	1,261,945	465,638	1,526,357	-	-	-	3,253,940	3,942,166
Maintenance expenses and security services for buildings, installation and equipment	58,558,823	34,837	2,346,510	-	-	-	60,940,170	43,236,650
Fees for technical assistance and external advice	286,841	657,908	1,172,631	-	-	-	2,117,380	1,345,034
Taxes, tariffs and contributions	7,310	-	4,693,461	-	-	-	4,700,771	5,040,121
Third party services	43,203,911	403,881	7,470,718	-	-	-	51,078,510	49,863,377
Operating IT services	927	50	5,242,030	-	-	-	5,243,007	4,901,407
Canteen and refreshment	2,095,617	65,174	108,183	-	-	-	2,268,974	2,367,041
Rents	180,944	573	154,189	-	-	-	335,706	300,630
Personnel transportation	2,081,548	-	146,721	-	-	-	2,228,269	2,127,911
Publicity and advertising	22,914	751,060	193,523	-	-	-	967,497	1,084,534
Sundry expenses and commissions	-	2,005,670	-	-	-	-	2,005,670	592,983
Charge for provision for contingencies	-	-	-	-	-	791,504	791,504	8,160,301
Charge for allowance for doubtful accounts	-	2,320,638	-	-	-	-	2,320,638	1,119,994
Freight and transportation	15,698,187	6,618,573	12,429	-	-	-	22,329,189	9,612,602
Major work not capitalizable	12,465,962	-	-	-	-	-	12,465,962	16,422,630
Depreciation of other assets	-	-	-	-	-	39,354	39,354	23,357
Depreciation of other non-current investments	-	-	-	-	-	-	-	23,191
Amortization of intangible assets	244,444	-	-	-	-	1,605,749	1,850,193	1,440,369
Depreciation of fixed assets	58,298,603	-	-	-	-	-	58,298,603	50,563,389
Recovery from sale of scrap	(16,207,661)	-	-	-	-	-	(16,207,661)	(16,668,015)
External warehouse expenses	886,840	-	-	-	-	-	886,840	1,168,612
Other ordinary income and expenses	11,118,929	1,455,276	5,436,348	-	-	11,849,008	29,859,561	18,540,221
Interests and other financing expenses	-	-	-	(13,272,992)	39,311,091	-	26,038,099	24,845,724
Exchange differences	-	-	-	392,029	(63,271)	-	328,758	1,845,441
Holding results on other non-monetary assets	-	-	-	6,914,793	-	-	6,914,793	5,200,000
Total at March 31, 2000	282,793,585	22,362,026	56,180,249	(5,966,170)	39,247,820	14,285,615	408,903,125
Total at March 31, 1999	246,086,448	19,048,001	57,136,801	(9,036,835)	40,928,000	10,947,422		365,109,837

The report on limited review is issued as a separate document.

	Sales and sundry services	Purchases and services received	Remuneration protector partner Compañía Afianzadora de Empresas Siderúrgicas S.G.R.	Interests	Total at 3.31.00	Total at 3.31.99
	$	$	$	$	$	$
Subsidiaries
Comesi San Luis S.A.I.C.	6,676,044	(271,554)	-	-	6,404,490	(113,043)
Comesi S.A.I.C. (1)	-	-	-	-	-	30,565,597
Subtotal	6,676,044	(271,554)	-	-	6,404,490	30,452,554
Related companies
Siderca S.A.I.C.	8,205,335	(1,428,495)	-	-	6,776,840	7,611,169
Compañía Afianzadora de Empresas Siderúrgicas S.G.R.	190,000	-	1,581,688	-	1,771,688	2,107,212
Ecocemento S.A.	686,480	-	-	-	686,480	85,935
Inversora Siderúrgica Argentina S.A.	-	-	-	38,075	38,075	5,589
Subtotal	9,081,815	(1,428,495)	1,581,688	38,075	9,273,083	9,809,905
Total at March 31, 2000	15,757,859	(1,700,049)	1,581,688	38,075	15,677,573
Total at March 31, 1999	61,891,015	(24,896,125)	1,687,212	1,580,357		40,262,459

(1) No balances at the end of the period are shown as a result of the merger of Siderar S.A.I.C. and Comesi S.A.I.C. (see Note 1 to the financial statements).

Amounts in brackets represent losses or disbursements.

The report on limited review is issued as a separate document.

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Legal address: Leandro N. Alem 1067, Buenos Aires

COMPLEMENTARY ACCOUNTING INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED MARCH 31, 2000

CONTENTS

Consolidated financial statements at March 31, 2000

Consolidated balance sheet

Consolidated statement of income

Consolidated statement of sources and uses of funds

Notes to the consolidated financial statements

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Registration number with the Superintendency of Corporations: 14510

CONSOLIDATED BALANCE SHEET at March 31, 2000, compared to the same period of the previous year

	3.31.00	3.31.99			3.31.00	3.31.99
	$	$			$	$
ASSETS				LIABILITIES
CURRENT ASSETS				CURRENT LIABILITIES
Cash and banks (Note 4.a)	9,572,975	5,623,024		Accounts payable (Note 4.n)	110,793,599	102,442,517
Other investments (Note 4.b)	1,185,723	29,125,544		Short-term debt (Note 4.o)	200,582,156	292,816,700
Trade receivables (Note 4.c)	175,007,879	171,355,249		Social security and taxes (Note 4.p)	32,693,545	38,755,731
Other receivables (Note 4.d)	34,690,539	36,187,419		Other liabilities	3,684,760	1,466,722
Inventories (Note 4.e)	236,556,158	298,063,418		Provision for contingencies	3,625,885	8,336,852
Other assets (Note 4.f)	1,577,535	2,717,184
Total current assets	458,590,809	543,071,838		Total current liabilities	351,379,945	443,818,522
NON-CURRENT ASSETS				NON-CURRENT LIABILITIES
Trade receivables (Note 4.g)	5,089,583	1,925,718		Accounts payable (Note 4.q)	10,841,407	15,198,314
Other receivables (Note 4.h)	11,803,688	10,345,453		Long-term debt (Note 4.r)	337,899,217	320,964,482
Investments (Note 4.i)	73,819,075	82,784,437		Social security and taxes (Note 4.s)	4,833,716	3,600,439
Other investments (Note 4.j)	70,625,088	45,137,374		Other liabilities	375,697	-
Intangible assets (Note 4.k)	4,281,998	6,759,107		Provision for contingencies	13,592,715	18,826,247
Fixed assets (Note 4.l)	721,389,635	758,039,297
Other assets (Note 4.m)	2,311,850	3,845,772
Total non-current assets	889,320,917	908,837,158		Total non-current liabilities	367,542,752	358,589,482
				Total liabilities	718,922,697	802,408,004
				MINORITY INTEREST IN SUBSIDIARIES	55,478	-
				SHAREHOLDERS' EQUITY	628,933,551	649,500,992
Total assets	1,347,911,726	1,451,908,996		Total liabilities and Shareholders' equity	1,347,911,726	1,451,908,996

The accompanying notes 1 to 6 are an integral part of these consolidated financial statements.

The report on limited review is issued as a separate document.

SIDERAR SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL

Registration number with the Superintendency of Corporations: 14510

CONSOLIDATED STATEMENT OF INCOME for the nine-month period ended March 31, 2000, compared to the same period of the previous year

	3.31.00	3.31.99
	$	$
Net income from sales	723,852,808	763,367,642
Cost of sales	(566,537,643)	(571,620,520)
Gross profit	157,315,165	191,747,122
Selling expenses	(22,472,756)	(20,351,616)
Administrative expenses	(56,298,522)	(59,743,852)
Financial and holding results
Generated by assets	6,473,976	8,931,333
Generated by liabilities	(39,309,872)	(41,919,614)
Other ordinary income and expenses	(14,293,043)	(13,429,861)
Minority interest in subsidiaries	(4,127)	-
Income before taxes	31,410,821	65,233,512
Income tax provision charge	(8,469,759)	(20,179,929)
Ordinary income	22,941,062	45,053,583
Result from investments in related companies	(26,349,266)	(41,484,048)
Net (loss) income for the period	(3,408,204)	3,569,535

The accompanying notes 1 to 6 are an integral part of these consolidated financial statements.

The report on limited review is issued as a separate document.

	3.31.00	3.31.99
	$	$
CHANGES IN FUNDS
Funds at the beginning of the period (1)	21,121,695	11,449,806
(Decrease) increase in funds	(10,362,997)	23,298,762
Funds at the end of the period (1)	10,758,698	34,748,568
CAUSES OF CHANGES IN FUNDS
Ordinary income	22,941,062	45,053,583
Add: Items not representing funds disbursements
Depreciation of fixed assets	58,324,803	54,334,703
Depreciation of other non-current investments	-	23,191
Depreciation of other current assets	39,354	60,257
Amortization of intangible assets	1,850,193	4,902,492
Allowance for doubtful accounts	2,320,638	854,359
Income tax provision charge	8,469,759	20,179,929
Board of Directors’ and Surveillance Committee’s fees provision	924,000	924,000
Provision for contingencies	798,777	8,747,325
Minority interest in subsidiaries	4,127	-
Funds generated by ordinary operations	95,672,713	135,079,839
Results of investments in related companies	(26,349,266)	(41,484,048)
Add: Items not representing funds disbursements
Results of investments in related companies	26,349,266	41,484,048
Funds generated by (applied to) remaining operations	-	-
Funds generated by operations	95,672,713	135,079,839
Other causes of sources of funds
Net decrease (increase) in other receivables	16,760,933	(15,995,029)
Net decrease in inventories	22,162,161	5,520,977
Net decrease (increase) in other assets	1,634,065	(1,038,330)
Net increase (decrease) in accounts payable	4,800,473	(40,732,284)
Net increase (decrease) in other liabilities	900,133	(1,358,671)
Total sources of funds - Carried forward	141,930,478	81,476,502

(1) Cash and banks plus other current investments

	3.31.00	3.31.99
	$	$
CAUSES OF CHANGES IN FUNDS (Contd.)
Brought forward	141,930,478	81,476,502
Other causes of uses of funds
Net (increase) decrease in trade receivables	(3,949,918)	307,800
Net increase in investments	(26,448,179)	(1,637,673)
Net (increase) decrease in other non-current investments	(32,672,500)	8,768,512
Net increase in fixed assets	(28,230,957)	(64,730,755)
Net (decrease) increase in short and long-term debt	(33,786,822)	68,141,893
Net decrease in social security and taxes	(12,611,020)	(34,602,794)
Decrease in provision for contingencies	(395,328)	(1,020,575)
Decrease in minority interest in subsidiaries	-	(94,615)
Distribution of profits voted by Shareholders' Meeting on September 30, 1998	-	(33,309,533)
Distribution of profits voted by Shareholders' Meeting on September 30, 1999	(14,198,751)	-
Total uses of funds	(152,293,475)	(58,177,740)
(Decrease) increase in funds	(10,362,997)	23,298,762

The accompanying notes 1 to 6 are an integral part of these consolidated financial statements.

The report on limited review is issued as a separate document.

NOTE 1 - BASIS FOR THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS - ACCOUNTING STANDARDS

The consolidated financial statements have been prepared in accordance with the valuation basis and criteria explained in Notes 2 and 3 to the financial statements of the parent company and must be read jointly with the complementary information to the financial statements.

NOTE 2 - CONSOLIDATION BASIS

The consolidated companies and the respective percentage of voting stock at March 31, 2000 were as follows:

Company	Participation
Comesi San Luis S.A.I.C.	99.000%
Prosid Investments Inc.	100.000%

The consolidated financial statements have been prepared on the basis of the financial statements of the subsidiaries at March 31, 2000.

The necessary adjustments have been made to unify the valuation and disclosure criteria of the consolidated companies. Balances between consolidated companies, transactions and their results and intercompany balances have been eliminated, if significant.

NOTE 3 - COMPLEMENTARY INFORMATION NOT DIFFERING SIGNIFICANTLY FROM THAT PRESENTED BY THE PARENT COMPANY

Notes 1 to 3, 5 to 13 and Exhibits A to I to the financial statements of the parent company are in this situation.

NOTE 4 - COMPOSITION OF CONSOLIDATED BALANCE SHEET ITEMS

	3.31.00	3.31.99
	$	$
CURRENT ASSETS
a) Cash and banks
Cash	131,723	233,157
Checks to be deposited	4,042,004	722,220
Banks	5,399,248	4,667,647
	9,572,975	5,623,024
b) Other investments
Sight deposits	1,185,723	9,952,430
Time deposits	-	19,173,114
	1,185,723	29,125,544
c) Trade receivables
Accounts receivable	110,114,765	99,680,347
Related companies Sect. 33 - Law No. 19550 and amendments	688,020	583,720
Export reimbursements	3,521,912	3,662,725
Notes receivable	69,470,692	78,202,381
Allowance for doubtful accounts	(7,412,515)	(8,697,017)
Unearned interest	(1,374,995)	(2,076,907)
	175,007,879	171,355,249
d) Other receivables
Related companies Sect. 33 - Law No. 19550 and amendments	3,034,696	3,638,715
Advances and loans to personnel	3,157,653	3,411,995
Receivables from sale of real property	454,616	280,202
Solidarity contribution	17,844	50,190
Tax credits	16,750,929	9,815,311
Advances to suppliers	950,920	4,279,576
Expenses paid in advance	2,018,081	2,837,164
Sundry receivables	8,305,800	11,874,266
	34,690,539	36,187,419

NOTE 4 - COMPOSITION OF CONSOLIDATED BALANCE SHEET ITEMS (Contd.)

	3.31.00	3.31.99
	$	$
CURRENT ASSETS (Contd.)
e) Inventories
Finished products	80,097,665	103,625,697
Products in process	49,760,148	88,083,339
Raw material	46,861,106	36,006,240
Materials	57,565,113	67,895,605
Advances to suppliers	2,272,126	2,452,537
	236,556,158	298,063,418
f) Other assets (residual value)
Property	1,577,535	2,717,184
	1,577,535	2,717,184

The amortization of the period amounted to $ 39,354.

NON-CURRENT ASSETS
g) Trade receivables
Notes receivable	6,841,583	2,461,890
Allowance for doubtful accounts	(1,752,000)	(536,172)
	5,089,583	1,925,718
h) Other receivables
Related companies Sect. 33 - Law No. 19550 and amendments	1,035,404	-
Advances and loans to personnel	1,773,723	1,765,653
Receivables from sale of real property	6,365,492	4,648,774
Solidarity contribution	-	7,105
Expenses paid in advance	2,450,777	3,558,059
Sundry receivables	178,292	365,862
	11,803,688	10,345,453

NOTE 4 - COMPOSITION OF CONSOLIDATED BALANCE SHEET ITEMS (Contd.)

	3.31.00	3.31.99
	$	$
NON-CURRENT ASSETS (Contd.)
i) Investments
Shares in Compañía Afianzadora de Empresas Siderúrgicas S.G.R.	358,761	297,475
Shares in Ecocemento S.A.	2,641,667	2,848,426
Shares in Consorcio Siderurgia Amazonia Ltd.	70,808,647	79,628,536
Shares in Fondo de Garantías Buenos Aires S.A.P.E.M.	10,000	10,000
	73,819,075	82,784,437
j) Other investments (residual value)
Loans convertible into shares in Consorcio Siderurgia Amazonia Ltd.	31,118,081	-
Investments in insurance companies	5,787,607	4,039,145
Guarantee fund Compañía Afianzadora de Empresas Siderúrgicas S.G.R.	36,000,000	41,000,000
Allowance for risk fund uncollectibility	(2,280,600)	-
Real estate	-	98,229
	70,625,088	45,137,374
k) Intangible assets (residual value)
Reorganization plant and project analysis related costs	-	336,111
Goodwill (Comesi S.A.I.C.)	4,281,998	6,422,996
	4,281,998	6,759,107
The amortization of the period amounted to $ 1,850,193.

NOTE 4 - COMPOSITION OF CONSOLIDATED BALANCE SHEET ITEMS (Contd.)

	3.31.00	3.31.99
	$	$
NON-CURRENT ASSETS (Contd.)
l) Fixed assets (residual value)
Land	23,055,007	23,045,327
Industrial buildings and facilities	423,513,283	412,998,712
Machinery and equipment	115,601,831	121,287,375
Vehicles and means of transport	4,395,773	5,155,409
Furniture, general machinery and office supplies	3,342,258	4,024,748
Steel spares and supplies	72,177,077	78,322,543
Fixed assets in transit	1,593,196	1,713,156
Work in progress	73,673,160	110,127,027
Advances to suppliers	4,038,050	1,365,000
	721,389,635	758,039,297
The depreciation of the period amounted to $ 58,324,803.
m) Other assets
Real property	2,311,850	3,845,772
	2,311,850	3,845,772
CURRENT LIABILITIES
n) Accounts payable
Ordinary suppliers	55,546,778	54,241,083
Related companies Sect. 33 - Law No. 19550 and amendments	1,276,010	1,944,655
Notes payable	52,723,142	44,188,187
Unearned interest	(1,900,050)	(2,258,617)
Advances from customers	3,147,719	4,327,209
	110,793,599	102,442,517

NOTE 4 - COMPOSITION OF CONSOLIDATED BALANCE SHEET ITEMS (Contd.)

	3.31.00	3.31.99
	$	$
CURRENT LIABILITIES (Contd.)
o) Short-term debt
Financial	6,602,515	20,067,142
Import/export financing	214,927,441	300,999,164
Unearned interest	(20,947,800)	(28,249,606)
	200,582,156	292,816,700
p) Social security and taxes
Provision for income tax	8,031,110	21,443,939
Income tax withholding and solidarity contribution	(7,956,000)	(14,494,405)
Income tax advances	(68,121)	(6,863,051)
Provision for turnover tax	124,288	231,223
Wages and social security	28,995,109	32,403,664
Other sundry	3,567,159	6,034,361
	32,693,545	38,755,731
NON-CURRENT LIABILITIES
q) Accounts payable
Notes payable	12,306,356	16,231,825
Unearned interest	(1,464,949)	(1,033,511)
	10,841,407	15,198,314
r) Long-term debt
Import/export financing	267,907,055	246,736,931
Negotiable Corporate Bonds	110,000,000	110,000,000
Unearned interest	(40,007,838)	(35,772,449)
	337,899,217	320,964,482
s) Social security and taxes
Sundry	4,833,716	3,600,439
	4,833,716	3,600,439

NOTE 5 - INCOME TAX - MINIMUM NOTIONAL INCOME TAX

The charge for income tax is that estimated to be paid according to current legislation for the following companies:

	$
Income tax
Siderar S.A.I.C.	8,459,602
Minimum notional income tax Comesi San Luis S.A.I.C.	10,157
	8,469,759

NOTE 6 - EVENTS SUBSEQUENT TO PERIOD-END

After March 31, 2000, no events, situations or circumstances which are not publicly known have occurred which affect or could significantly affect the Company's equity and financial position.

The report on limited review is issued as a separate document.

REPORT ON LIMITED REVIEW

Buenos Aires, May 3, 2000

To the members of the Supervisory Council of

Siderar Sociedad Anónima Industrial y Comercial

1. We have carried out a limited review of the balance sheet of Siderar Sociedad Anónima Industrial y Comercial at March 31, 2000, and of the related statements of income, of changes in shareholders' equity and of sources and uses of funds for the period of nine months then ended, with complementary notes 1 to 11, 13 and 14 and exhibits. We have also carried out a limited review of the consolidated financial statements of Siderar Sociedad Anónima Industrial y Comercial with its subsidiaries for the period of nine months ended March 31, 2000, which are presented as complementary information. These financial statements are the responsibility of the Company’s management.
2. The financial statements at March 31, 1999 and the consolidated financial statements with its subsidiaries at that date were subject to an audit examination performed by us, having issued our report dated May 3, 1999, which included a qualification derived from the situation described in paragraph 4.
3. Our review of the financial statements at March 31, 2000 was limited to the application of the procedures established in Technical Pronouncement No. 7 of the Argentine Federation of Professional Councils in Economic Sciences for limited reviews of interim financial statements, which consist mainly of the application of analytical procedures to the amounts disclosed in the financial statements and inquiries made of Company staff responsible for the preparation of the information included in the financial statements and of its subsequent analysis. This review is substantially less in scope than an audit, the objective of which is to express an opinion on the financial statements under review. Accordingly, we do not express an opinion on the Company's financial position, the results of operations, the changes in its shareholders' equity and the sources and uses of funds.
4. During the current period the uncertainty derived from the situation of the indirect investments in Siderúrgica del Orinoco C.A. and Consorcio Siderurgia Amazonia Ltd. described in Note 8.d) had a favorable resolution.
5. Based on the work done and on our examination of the financial statements of the Company and its consolidated financial statements for the years ended June 30, 1999 and 1998, on which we issued our report dated September 1º, 1999, which contained a qualification referred to the situation explained in paragraph 4, we report that the financial statements of Siderar Sociedad Anónima Industrial y Comercial at March 31, 2000 and its consolidated financial statements at that date consider all significant facts and circumstances which are known to us, and we have no comments to make regarding them.
6. As part of our work, the scope of which is mentioned in the third paragraph, we have reviewed the “Summary of Activity” required by the National Securities Commission and, regarding those aspects witch fall within our competence, we have no observations to make.

PRICE WATERHOUSE & CO. by (Partner)
Dr. Daniel A. López Lado Contador Público (UBA) C.P.C.E. Capital Federal Tomo 148 - Folio 91