Tenaris Announces 2007 Fourth Quarter and Annual Results

Tenaris S.A. (NYSE: TS) (BAE: TS) (MXSE: TS) (MILAN: TEN) ("Tenaris") today announced its results for the fourth quarter and year ended December 31, 2007 with comparison to its results for the fourth quarter and year ended December 31, 2006.

Summary of 2007 Fourth Quarter Results

(Comparison with third quarter of 2007 and fourth quarter of 2006)

                               Q4 2007        Q3 2007         Q4 2006
                               -------        -------         -------
Net sales (US$ million)        2,628.0  2,433.8        8%  2,460.9      7%
Operating income (US$ million)   756.7    671.7       13%    812.6     (7%)
Net income (US$ million)         595.8    436.4       37%    612.0     (3%)
Shareholders net income (US$
 million)                        546.5    401.0       36%    574.8     (5%)
Earnings per ADS (US$)            0.93     0.68       36%     0.97     (5%)
Earnings per share (US$)          0.46     0.34       36%     0.49     (5%)
EBITDA (US$ million)             890.9    804.5       11%    901.6     (1%)
EBITDA margin (% of net sales)      34%      33%                37%

Following the agreement to sell the Hydril pressure control business to GE, the pressure control segment was reclassified in our financial statements as a discontinued operation.

Our fourth quarter results show a partial recovery at the operating level compared to the third quarter, with operating income returning to the levels recorded in the first two quarters of the year but remaining below the strong level recorded in the fourth quarter of 2006. Our net income for the quarter further benefitted from a reduced income tax charge and a gain recorded on the sale of our remaining 25% interest in Dalmine Energie. Free cash flow (net cash provided by operations less capital expenditures) totaled US$118.1 million, and net debt at December 31, 2007 was US$2,970.2 million following the payment of an interim dividend.

Summary of 2007 Annual Results

                                                                 Increase/
                                           FY 2007     FY 2006  (Decrease)
Net sales (US$ million)                   10,042.0     7,727.7      30%
Operating income (US$ million)             2,957.2     2,792.5       6%
Net income (US$ million)                   2,076.1     2,059.4       1%
Shareholders net income (US$ million)     1,923.7     1,945.3      (1%)
Earnings per ADS (US$)                        3.26        3.30      (1%)
Earnings per share (US$)                      1.63        1.65      (1%)
EBITDA (US$ million)                       3,449.3     3,045.6      13%
EBITDA margin (% of net sales)                  34%         39%

Following several years of strong growth, earnings per share declined marginally in 2007 compared to 2006. Net sales, EBITDA and operating income, on the other hand continued to grow, up 30%, 13% and 6% respectively. These stable results reflect steady overall demand for our products and services from the global oil and gas industry. They were achieved in a context of rising costs and a severe decline in Canadian gas drilling activity.

We expect our sales to increase in 2008, led by higher sales of specialized, high-end OCTG products, and that the increase in sales should result in higher operating and net income. However, increased volatility in economic conditions and raw material and commodity prices could affect market conditions for our products and services and, consequently, our results for the second half of the year.

Annual Dividend Proposal

The board of directors proposes, for the approval of the annual general shareholders' meeting to be held on June 4, 2008, the payment of an annual dividend of US$0.38 per share (US$0.76 per ADS), or approximately US$450 million, which includes the interim dividend of US$0.13 per share (US$0.26 per ADS) paid on November 22, 2007. This would represent an increase of 27% over the annual dividend paid for the 2006 fiscal year. If the annual dividend is approved by the shareholders, a dividend of US$0.25 per share (US$0.50 per ADS), or approximately US$295 million will be paid on June 26, 2008 with a record date of June 25, 2008 and an ex-dividend date of June 23, 2008.

Market Background and Outlook

In 2007, global demand for oil and gas continued to rise reflecting economic growth and the importance of oil and gas in the energy matrix. Encouraged by continuing high levels of oil prices, oil and gas companies in most regions of the world continued to increase their level of spending and drilling activity to offset declining rates of production from mature fields and to explore and develop new reserves. In Canada, however, subdued North American gas prices affected gas drilling activity.

The international count of active drilling rigs, as published by Baker Hughes, after rising steadily in the first three quarters of the year dipped marginally in the fourth quarter to average 1017, an increase of 7% compared to the same quarter of the previous year. The average increase for the full year, compared to 2006, was 9%.