Posco Plantec Co.,Ltd. (South Korea)

Sales increased sharply over the preceding year same period with growing orders for components of chemical plants and research nuclear reactors as downstream power plant market grows.Net profit is posted for the first half with economic size effects and decreased loss from derivatives while cost ratio improves with stable raw material supply as equity acquired by POSCO Group.Financial structure remains insufficient with heavy borrowings though net worth is replenished with decreased loss while convertible preferred stock is repaid to decrease indebtedness. Growth will continue in the latter half with orders received for modules of Hyundai Heavy gas plants, Exxon Mobile oil sand plant, and desalination plant in Saudi Arabia.Profitability will improve with stable supply of raw materials from POSCO while fixed cost burden decreases with solid sales growth.Long-term growth is foreseen with synergy from becoming a POSCO subsidiary in May 2010, including orders for modules of Finex furnace and blast furnace from POSCO Construction.