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March 2004

Weirton Steel Agrees to Purchase by International Steel Group for $255 Million Plus Liabilities
Weirton terminates existing retirees’ coverage

Weirton, WV— Weirton Steel Corp. has agreed to sell substantially all of its assets to Cleveland-based International Steel Group Inc. (ISG) for approximately $255 million consisting of cash and the assumption of liabilities.

The transaction is subject to bankruptcy court approval and other conditions. The sale is expected to be completed in the second quarter of this year.

"We will continue normal operations throughout this process. The sale is good news for Weirton Steel, our customers and the local communities," said D. Leonard Wise, Weirton Steel chief executive officer.

"Our goal has been to secure the best possible solution for all of our stakeholders and to maintain a steel operation in Weirton. We believe ISG provides the answer. Under ISG, Weirton Steel should be able to complete more effectively in the world market. Given Weirton Steel's bankruptcy, we are fortunate to have the opportunity to join ISG."

Wise said that while the pending sale is positive news for the Upper Ohio Valley, it occurs at the same time as an unfortunate event for Weirton Steels' retirees.

"Weirton Steel recognizes the significant contribution our retirees have made throughout their years of dedicated service. Obviously, we are saddened to report that we will no longer be able to pay for retiree health care and life insurance programs. This decision was extremely difficult, but unavoidable. We sincerely regret the series of circumstances that led to this situation," Wise noted.

"We understand our retirees' expectations. Those expectations were created at a time when health care costs were dramatically lower and our company's financial foundation was much stronger. Unfortunately, those conditions no longer exist. But unlike many other companies that terminated retiree insurance programs upon declaring bankruptcy, at least we were able to provide these programs during the nine months we have been in bankruptcy."

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