Friday, February 12, 2010

Ternium informs market on current status of Sidor compensation payments

Luxembourg, February 9, 2010 – Ternium S.A. (NYSE: TX) announces that it did not receive the Sidor compensation payments required to be made yesterday by Corporación Venezolana de Guayana, or CVG. These payments consist of a US$157.5 million principal installment, plus interest, due under the first tranche, and US$141.4 million mandatory prepayment, plus interest, due under the second tranche.

The total balance of the Sidor compensation payments outstanding as of the date hereof amounts to US$1.02 billion, plus interest.

Under the May 7, 2009 agreements governing the transfer of Ternium’s interest in Sidor to Venezuela, CVG has 15 days to cure any payment default under either tranche. Ternium has no indication that CVG will not pay the amounts currently owed to it in the coming days.

About Ternium
Ternium is a leading steel company in Latin America, which manufactures and processes a wide range of flat and long steel products for customers active in the construction, home appliances, capital goods, container, food, energy and automotive industries. With its principal operations in Mexico and Argentina, Ternium serves markets in the Americas through an integrated manufacturing system and an extensive distribution network. The Company has an annual production capacity of approximately 9 million tons of finished steel products. 

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