WL Ross & Co. LLC Purchases LTV Integrated Steel Assets

New York, NY - WL Ross & Co. LLC has agreed to acquire LTV Corporation's integrated steel assets for approximately $325 million, of which $125 million will be in cash and approximately $200 million in the assumption of environmental and other liabilities. The acquisition includes facilities located in Cleveland, East Chicago, Indiana, Hennepin, Illinois, and Warren, Ohio. The agreement was subject to acceptance of the bid at an auction that was conducted in February and approval by the U.S. Bankruptcy Court. The agreement requires LTV to pay a breakup fee of $4 million in the event WL Ross & Co. is not the confirmed buyer.

"We are very pleased that WL Ross has emerged as the successful bidder for our steel assets," said Glenn J. Moran, chairman and chief executive officer of The LTV Corporation.

"WL Ross has the financial resources and has assembled a strong managerial team to return LTV's excellent facilities to operation, and create opportunities for our former employees and plant communities." WL Ross & Co. also announced that it has reached an agreement in principal with the United Steelworkers of America to negotiate a new collective bargaining agreement.

The United Steelworkers of America welcomed what it called "a new ally in the fight to win strong federal action to save the American steel industry," with the announcement that WL Ross & Co. LLC has agreed to acquire LTV.

"This deal will save the jobs of many steelworkers at LTV," said Leo W. Gerard, USWA president. "I look forward to working with a management that believes in a world class steel industry."

Wilbur Ross, CEO of WL Ross & Co. said, "We are hopeful that these mills, which have a global reputation for high quality products, can be highly profitable and globally competitive. The keys to our success include the leadership of Rodney Mott, who will be appointed president and CEO of the new company, a world-competitive steelworker labor agreement, lower overhead costs and strong relief under Section 201. Rodney Mott, age 50, with his experience at Nucor Steel and U.S. Steel, has the unique ability to meld the best of minimill efficiencies with the inherent quality advantages of the integrated process into a new kind of American steel company."

Mr. Mott said, "Our new steel company will initially produce 4 million tons of flat rolled steel and generate over $1 billion in sales per year. It will be fully competitive in price and quality in its markets. Based on the excellent expressions of support we have received from our future customers, suppliers and local communities, and an anticipated satisfactory outcome of the President's 201 fair trade investigation, we are very confident that we will succeed and prosper."

Mr. Mott said that he intends to restart production at all of the facilities immediately.