Steelworkers Labor Pact Time Extended

Mishawaka, IN— National Steel Corporation announced its agreement with AK Steel Corporation to extend the date after which either party would have the right to terminate their previously announced Asset Purchase Agreement in the event that AK Steel and the United Steelworkers of America have not entered into a new collective bargaining agreement covering those represented National Steel employees becoming employees of AK Steel. The original date of March 17, 2003 has been extended to March 26, 2003, as expressly contemplated by the Asset Purchase Agreement.

Pursuant to the APA, National Steel has agreed to sell substantially all of its principal steelmaking and finishing assets, as well as its iron ore pellet operations, to AK Steel. The transaction, which is targeted for completion early in the second quarter of 2003, is valued at approximately $1.125 billion, consisting of $925 million of cash and the assumption of certain liabilities approximating $200 million.

Under the terms of the APA, which is subject to the approval of the bankruptcy court, AK Steel would acquire facilities at National Steel's two integrated steel plants, Great Lakes in Ecorse and River Rouge, Michigan, and the Granite City Division in Granite City, Illinois, the Midwest finishing facility in Portage, Indiana, the National Steel Pellet Company in Keewatin, Minnesota, the administrative office in Mishawaka, Indiana, various subsidiaries and National Steel's share of the Double G joint venture in Jackson, Mississippi, as well as net working capital related to the acquired assets.