?EUR??,,????'??Considering market conditions, we had a good quarter with solid results from Flat-rolled and Tubular and a particularly strong performance by our European segment.?EUR??,,????'?? U. S. Steel Chairman and CEO John P. Surma said. ?EUR??,,????'??We continued to generate substantial cash, redeemed $49 million of debt and made a voluntary contribution of $35 million to our main defined benefit pension plan.?EUR??,,????'??

The company reported first quarter 2007 income from operations of $346 million, compared with income from operations of $341 million in the fourth quarter of 2006 and $369 million in the first quarter of 2006.

U.S. Steel management believes segment income from operations is a key measure to evaluate ongoing operating results and performance. Segment income from operations was $385 million, or $76 per ton, in the first quarter of 2007, compared with $414 million, or $85 per ton, in the fourth quarter of 2006 and $429 million, or $80 per ton, in the first quarter of 2006.

According to the company, first quarter 2007 segment results decreased from fourth quarter 2006 as was expected. Flat-rolled income more than doubled from the fourth quarter due primarily to higher contract prices and improved operating efficiencies, partially offset by lower spot prices and higher raw material costs. U. S. Steel Europe (USSE) income increased mainly due to higher shipment volumes. Tubular results were lower than the fourth quarter on lower shipments and prices, reflecting continued high imports and customer inventory levels. The decline in results for Other Businesses was related to normal seasonal effects at our iron ore operations in Minnesota and the non- recurrence of fourth quarter land sales.