Tenaris Announces 2008 First Quarter Results

Tenaris S.A. (NYSE: TS) (BAE: TS) (MXSE: TS) (MILAN: TEN) ("Tenaris") today announced its results for the quarter ended March 31, 2008 with comparison to its results for the quarter ended March 31, 2007.

Summary of 2008 First Quarter Results

(Comparison with fourth and first quarters of 2007)

                               Q1 2008      Q4 2007           Q1 2007
                               -------  ----------------  --------------
Net sales (US$ million)        2,626.2  2,628.0      (0%) 2,425.3      8%
Operating income (US$ million)   710.9    756.7      (6%)   757.6     (6%)
Net income (US$ million)         500.0    595.8     (16%)   509.4     (2%)
Shareholders net income (US$
 million)                        473.0    546.5     (13%)   480.3     (2%)
Earnings per ADS (US$)            0.80     0.93     (13%)    0.81     (2%)
Earnings per share (US$)          0.40     0.46     (13%)    0.41     (2%)
EBITDA (US$ million)             845.4    890.9      (5%)   858.1     (1%)
EBITDA margin (% of net sales)      32%      34%               35%

Our earnings per share in the first quarter of 2008 were marginally lower than that recorded in the first quarter of 2007. At the operating level, our results reflect lower shipments of seamless pipe products in the Middle East and Africa region partially offset by higher demand for our welded pipe products in North America and in our Projects segment. Margins in dollars per ton for our seamless and welded pipe products remained stable compared to the fourth quarter of 2007 notwithstanding higher costs. Free cash flow (net cash provided by operations less capital expenditures) totaled US$480.5 million during the quarter, and net debt declined to US$2,501.2 million as of March 31, 2008.

Market Background and Outlook

In the first quarter of 2008, global oil prices continued to rise reflecting steady global demand and concerns about supply. North American gas prices also rose reflecting a tighter market as seasonally adjusted storage levels declined from the high levels of the past two years. Despite the recent increase in North American gas prices, they remain below international prices for LNG and residual fuel oil as US gas production has increased in line with demand.

Oil and gas companies continue 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. However, the supply-side response to high international oil and gas prices is constrained by limited industry resources, restrictions on the access to the majority of the world's known reserves and the time needed to develop significant new reserves.

The international count of active drilling rigs, as published by Baker Hughes, averaged 1046 during the first quarter of 2008, an increase of 7% compared to the same quarter of the previous year and 3% higher than the fourth quarter of 2007. The corresponding rig count in USA, which is more sensitive to North American gas prices, was 2% higher in the first quarter of 2008 than the same quarter of the previous year but registered a 1% decline compared to the fourth quarter of 2007. In Canada, however, the corresponding rig count during the first quarter of 2008 was 5% lower than in the first quarter of 2007.

Demand for our OCTG and other pipe products from the oil and gas industry is expected to increase this year, particularly in North America following last year's destocking by U.S. distributors. However, inventory adjustments will continue to affect some markets and competitive activity is increasing in many areas reflecting higher capacity availability.

Demand for our large diameter pipes for pipeline projects in South America remains good as we continue to make deliveries to previously contracted gas pipeline infrastructure projects in Brazil and Argentina. Orders for new projects in Brazil and Colombia have been received and we expect to maintain a strong level of sales in this segment in 2008.

Steelmaking raw material costs for our seamless pipe products and steel costs for our welded pipe products have risen steeply in the year to date and are expected to go on rising in the near term. Energy and labor costs are also increasing. Pipe prices, are also rising, though not at the same pace across all markets. We expect that, over time, we will maintain our margins in dollars per ton notwithstanding the increased volatility in costs.

Annual Shareholders Assembly

The annual general shareholders' meeting of the Company will take place at 11:00 am on June 4, 2008 in Luxembourg. The notice and agenda for the meeting, the shareholder meeting brochure and proxy statement together with the Company's 2007 annual report can be downloaded from our website at www.tenaris.com/investors and may be obtained on request by calling 1-800-555-2470 (within the USA) or 1-267-468-0786 (outside the USA).

Analysis of 2008 First Quarter Results

                                                                Increase/
Sales volume (metric tons)           Q1 2008        Q1 2007    (Decrease)
                                   ------------  ------------  ----------
Tubes - Seamless                        691,000       746,000         (7%)
Tubes - Welded                          282,000       252,000         12%
Tubes - Total                           973,000       998,000         (3%)
Projects - Welded                       132,000        75,000         76%
Total                                 1,105,000     1,073,000          3%


                                                                Increase/
Tubes                                Q1 2008       Q1 2007     (Decrease)
                                   -----------   -----------   ----------
(Net sales - $ million)
North America                            832.6         727.8          14%
South America                            238.2         260.5          (9%)-
Europe                                   447.6         418.7           7%
Middle East & Africa                     475.7         580.0         (18%)
Far East & Oceania                       176.6         157.7          12%
Total net sales ($ million)            2,170.7       2,144.7           1%
Cost of sales (% of sales)                  54%           50%
Operating income ($ million)             637.4         722.0         (12%)
Operating income (% of sales)               29%           34%