Press Release

Kortrijk (Belgium), 17 March 2005.

• 20% sales increase - strong organic growth in all business segments and regions0
• Result from operations: € 185 million, compared to € 112 million
• Net result: € 168 million, compared to € 87 million
• A proposed gross dividend of € 2: € 1.875 per share, an increase of 7%, supplemented with a premium of € 0.125 to celebrate 125 years of Bekaert

Bekaert had a record year in 2004, a year of exceptional market conditions. Despite continuing volatility on the raw material markets, which translated into higher selling prices, Bekaert was able, through efficient internal organisation, to maintain uninterrupted supplies to its customers. Bekaert achieved substantial volume growth in most of its activities and strengthened its position in most of its markets.
Bekaert further streamlined its product portfolio to meet the changing demands of markets and customers more effectively but also invested in expanding its production capacity, chiefly in Europe and Asia. While continuing to give high priority to quality and cost control, Bekaert intensified its research and development (R&D) effort significantly in 2004.

Consolidated and combined sales by business segment

Consolidated and combined sales by geographical area

Advanced wire products

Combined sales of advanced wire products were 21% higher (wire Europe +17%, wire North America +22%, wire Latin America +32%, wire Asia +49%, building products +20%, steel cord China +1%, steel cord others +21% and other advanced wire products +2%).

Despite the difficulties on the raw material markets, advanced wire products had a very good year. With the economy picking up in Europe and North America, Bekaert made significant progress in consolidating the market positions of the majority of its advanced wire products. Wire Asia achieved substantial growth and a strong performance was delivered in most Latin American countries, in a very good economic climate, mainly as a result of substantial volume growth. Worldwide demand for steel cord products for tire reinforcement was especially strong. Growth slowed temporarily in China, due to government measures, but the market improved a little by the end of the year. Bekaert expanded its sales organisation in China, thereby focusing on the needs of the various customer groups. Because the new Chinese production capacity is fully integrated into Bekaert’s global production platform for steel cord products, exports from China helped meet the high level of demand in other parts of the world, which also contributed to the vigorous growth of the activity platform steel cord others.

Consolidated sales of advanced wire products benefited from external growth with the acquisition of Bekaert Hlohovec, a.s. (Slovakia) and the purchase of the outstanding shares in Contours Ltd (USA), which were included in the 2003 consolidated figures for nine months and six months, respectively.

The result from operations reflected the strong growth in advanced wire products’ volume. In addition, the effect of applying the inventory valuation rules in the context of significant price increases for raw materials amounted to € 35 million.

Fencing systems Europe4

Combined sales for fencing systems Europe were 19% higher.

Fencing systems Europe's strong performance reflected a good season, substantial volume growth in industrial fences, as well as further expansion of the project business. The impact of inventory valuation amounted to € 11 million.

Advanced materials

Combined sales of advanced materials recorded growth of 13% (ibre technologies +7%, combustion technologies +53%, composites –24%).

Bekaert achieved sustained organic growth in fibre technologies and combustion technologies. Significant additional growth in combustion technologies was gained from the acquisition of Solaronics, which was successfully integrated in the ensuing months and will make its full contribution to the result from 2005 onwards. Bekaert withdrew from its composite profiles activities at the end of 2003.

Advanced coatings

Combined sales of advanced coatings were up by 7%(industrial coatings +15%, specialised films +2%).

Demand grew for industrial coatings generally and for diamond-like coatings in particular. In the autumn of 2004, an additional production facility was set up in Suzhou (China) which will specialise in applying those high-quality coatings to moulds used in various industrial applications. In the coming years, Bekaert is planning to add several more facilities worldwide. This will also enable the company to provide an even faster service to its customers.

In specialised films, the level of activity in the United States was stable. Thanks to the expansion of Bekaert’s sales organisations, important growth was achieved in Europe and Asia.

The growth in consolidated sales of advanced coatings was also due in part to the increase in Bekaert's interest in Sorevi S.A. (France) and Precision Surface Technology Pte Ltd (Singapore).

The intensification of the R&D effort and the further development of the sales organisations significantly impacted on the operating result. An impairment was applied to one of the niche applications of specialised films.

Non-operating income and expenses included an impairment of € 4.6 million on the handling activity and a positive result of € 3.6 million on financial instruments.

The companies accounted for under the equity method contributed € 56.8 million (€ 36.9 million5) to the result.

Balance sheet
As at 31 December 2004, shareholders' equity represented 44% of total assets.

Cash flow
Operational cash flow (EBITDA) increased to € 316.7 million. Cash flow amounted to € 307.1 million, or € 14.04 per share. Cash provided by operating activities amounted to € 159.7 million and depreciation, amortisation and impairments totalled € 131.6 million. Working capital amounted to € 452.6 million (€ 354.0 million), reflecting the higher sales and the corresponding level of inventories.
Cash used in investing activities by the consolidated companies totalled € 159.7 million. Acquisitions of interests in other companies amounted to € 16.7 million. Investments in tangible assets totalled € 166.2 million, mainly in connection with expansion projects in Europe and Asia. Reflecting the ambitious expansion programme and the increase in working capital, net debt increased to € 409.3 million and the gearing ratio (net debt/shareholders' equity) was 43%.

NV Bekaert SA (Statutory Accounts)
The parent company's sales amounted to € 620.0 million and its profit to € 57.7 million.

Events after balance sheet date
In early 2005, Bekaert sold the shares in Bekaert Fencing NV to Gilde, an investment company, for an enterprise value of € 281.5 million. In 2004, this business segment generated combined sales of € 454.0 million and an operating result of € 51.7 million. The capital gain on this transaction, which was completed on 1 March 2005 with effect as of 1 January 2005, is expected to amount to € 56 million.

Outlook
The sale of the European fencing division has been completed. In 2005, Bekaert will further develop its strategy of sustainable profitable growth. The company aims to continue to improve its performance structurally and to support growth in its different business segments in the various regions, with targeted R&D activities and investments.

After an exceptionally strong financial year in 2004, Bekaert made a good start in 2005.

(See annexes : Consolidated Income Statement, Consolidated Balance Sheet, Changes in Shareholders Equity, Consolidated cash flow statement, Key figures, Additional key figures, Profit and Loss Statement for NV Bekaert SA)

 Financial calendar

The statutory auditor has confirmed that his audit procedures, which have been substantially completed, have revealed no material adjustments that would have to be made to the accounting information included in this press release.
The accompanying consolidated accounts have been compiled in full conformity with the International Financial Reporting Standards ("IFRSs"), including International Accounting Standards ("IASs"), IFRIC and SIC interpretations issued by the International Accounting Standards Board ("IASB"), all of which have been approved by the European Union.                                   

Annex 1

Press release dd. 17 March 2005

*  As most of the Latin American joint ventures have adopted IFRS, the figures for 2003 have been restated.

* As most of the Latin American joint ventures have adopted IFRS, the figures for 2003 have been restated.

Annex 3

 Press release dd. 17 March 2005

Changes in Shareholders Equity    (in thousands of €)	2004	2003
Opening balance Net result of the Group Foreign exchange translation differences and others Own shares acquired Dividends to shareholders Closing balance	790 834 167 604 -227   -9 924 -38 579 909 708	759 068 86 674 -15 559   -2 185 -37 164 790 834
Consolidated cash flow statement (in thousands of €)
Cash provided by (used in) - operating activities - investing activities - financing activities	159 736 -159 656 7 315	150 133 -116 009 -32 803
Net increase in cash and cash equivalents	7 395	1 321
Key figures (per share)
EBITDA EBIT EPS (Earnings per share) EPS after dilution EPS before goodwill Cash flow Turnover Book value Gross dividend Net dividend Net dividend with VVPR strip Share price per 31 December Number of shares	14.48 8.46 7.65 7.63 8.06 14.04 99.35 43.82 2.00 1.50 1.70 58.75 21 873 705	10.83 5.07 3.92 3.92 4.39 10.14 81.42 37.80 1.7480 1.3110 1.4858 50.50 22 070 300
Additional key figures (in thousands of €)
Cash flow Operational cash flow (EBITDA) Depreciation and amortisation Amortisation of goodwill Capital employed Working capital Net debt EBIT/sales Gearing Average working capital/sales	307 051 316 714 131 632 5 777 1 362 664 452 624 409 328 8.5% 42.7% 18.6%	223 693 239 108 127 307 6 984 1 230 973 353 950 363 509 6.2% 43.6% 19.6%
NV BEKAERT SA – STATUTORY - Profit and Loss Statement (in thousands of €)
Sales Operating expenses Operating result Financial result Profit from ordinary activities Extraordinary results Profit before income taxes Income taxes Profit for the year	619 965 -584 107 35 858 50 593 86 451 -26 047 60 404 ‑2 727 57 677	496 492 -485 799 10 693 151 822 162 515 -45 946 116 569 0 116 569

0 All comparisons are made relative to 2003.

1 Combined sales are sales generated by consolidated companies, joint ventures and associated companies.

² The business segment fencing systems Europe consists of the companies involved in the sales transaction completed on 1 March 2005, i.e. Bekaert Fencing NV and its subsidiaries. The handling activity, formerly reported in this segment, is now reported in ‘intersegment sales and others’.  The comparisons are based on the restated 2003 figures.

3 Excluding ‘intersegment sales and others’.

4 The business segment fencing systems Europe consists of the companies involved in the sales transaction completed on 1 March 2005, i.e. Bekaert Fencing NV and its subsidiaries. The handling activity, formerly reported in this segment, is now reported in ‘intersegment sales and others’.  The comparisons are based on the restated 2003 figures.

5 As most of the Latin American joint ventures have adopted IFRS, the figures for 2003 have been restated.