June 25, 1999

MAY STEEL IMPORT INCREASES SHOWS CRISIS NOT OVER; ADMINISTRATION'S COMMENTS PREMATURE AND MISLEADING

WEIRTON WV 26062 - A 30 percent increase in foreign steel shipments to American markets from April to May discredits last week's claim by the U.S. Commerce secretary that the steel import crisis is over, a Weirton Steel Corporation Official said today.

Last week, Commerce Secretary William Daley announced the 1998 steel crisis was over, citing a decrease in steel imports by 5.5 percent over the first four months of this year compared to the same period last year. Today's government announcement revealed steel imports are up 30 percent from April to May, however, they decreased when comparing last month to May 1998.

"Even though imports are down slightly when comparing both months or 1999 year-to-date to 1998 year-to-date, the public must remember that 1998 was the record year for steel imports. Therefore, while the government rejoices over decreases, it's comparing them to record level imports in 1998 and in some cases, to 1997, the previous record year. The fact is, imports were at a crisis level both years and the situation is totally unacceptable," said Gregg Warren, Weirton Steel Director-Corporate Communications and Government Relations.

"Today's report of the May increase clearly shows imports continue to injure U.S. steel makers, their employees and steel communities. Mr. Daley's comments last week that the import crisis was over were premature. His words are harming our ability to adequately present our case before Congress and the American people."

The largest increases from April to May include: Russia, up 550 percent; Spain, up 395 percent; Brazil, up 81 percent; Turkey, up 65 percent; South Korea, up 50 percent; and Japan, up 39 percent.

Earlier this month, Weirton Steel joined eight other complainants in filing trade cases against 12 countries. The countries are accused of illegally pricing their cold-rolled steel sold in the U.S.

"We're pleased our government recently began its investigation into our cases. U.S. steel producers and domestic markets are being overrun by low-priced steel, particularly cold rolled. Russia, for example, increased its cold rolled shipments to the U.S. by 460 percent from April to May," commented Weirton Steel's Earl Davis, Executive Vice President--Commercial.

Davis was one of several domestic steel officials who testified Wednesday in Washington, D.C., during a hearing before the U.S. International Trade Commission, which is investigating the cold rolled allegations.

"As we've been saying all along, we don't have a problem with trade, as long as it's fair trade. Worldwide, everyone should have to compete under the same set of rules," Davis said.

Weirton Steel, the eight largest U.S. integrated steel company, lost nearly $42 million during the past three quarters and has 360 employees laid off as a direct result of the high steel import levels.

(Please note: Tons in this release are in U.S. tons. Tonnage numbers appearing in government reports, news releases or news releases from other sources, may be listed as metric tons. For the purpose of this news release, Weirton Steel has converted metric tons into U.S. tons.)