Recent evolution of raw material prices has made our production costs increase into a new, higher level, compared to the situation at the beginning of 2010.
 
Current fluctuations reflect a punctual volatility not necessarily linked to the future production costs, which we expect to remain in a very high level. Our most probable scenario forecast for 3Q10 shows an increase in both costs and sections sale prices.
 
As a consequence, we will no longer publish our Scrap Surcharge.
 
Our sales price offers, orders and contracts will be based on our price list as of 1 June 2010.

The existing ongoing contracts will extend the current Scrap Surcharge as of 1 May 2010 (244 EUR/t).

We thank you for your understanding.

Gallardo Sections S.L., May 18, 2010