NEWS RELEASES - 2002

U.S. Specialty Steel Industry Confronts Increased Import Penetration (Washington DC) (February 19, 2002) -- With the March 6 deadline looming for President Bush's decisions on steel imports, the Specialty Steel Industry of North America (SSINA) today released data reflecting that the majority of specialty steel product lines were confronted with substantial increases in import penetration last year. One product line, alloy tool steel, effectively lost the entire U.S. market to imports. Alloy tool steel import penetration in January/November 2001 increased 26 percentage points over the same 2000 period, capturing 94% of the U.S. market. The data (the most current available) also reflect that import penetration for stainless steel rod was 79%, an increase of four percentage points; stainless steel wire was 50%, an increase of 13 percentage points; and electrical steel increased one percentage point to 22% import penetration. Stainless steel bar import penetration was 46% for the 2001 eleven-month period, a decline of only one percentage point. Said SSINA Chairman H.L. Kephart, "Despite the U.S. economic slump and decline in demand, many foreign producers, lacking viable markets in their own countries, continue to flood the U.S. market -- the most open in the world -- with unfairly traded imports that seize market share from competitive and efficient U.S. specialty steel producers and their workers.""Free trade exists only when fair market prices prevail," Kephart continued. "Fair market prices cannot prevail, however, when foreign government subsidization, imports that are priced at less than fair value, and global overcapacity distort the mechanics of the world trading system." The data reflect that import penetration for total specialty steel and total stainless steel, the industry's largest product line, varied little in 2001, 2000 and 1999. Year-to-date November 2001 import penetration for total specialty steel was 25% compared to 27% for the same 2000 period and 26% for all of 1999. Likewise, total stainless steel was 24% compared to 27% for YTD November 2000 and 25% for 1999. For each of the seven specialty steel product lines (stainless steel sheet/strip, plate, bar, rod, wire, and tool and electrical steel), imports declined between 3% and 33%. U.S. demand for these products, however, dropped between 10% and 31%, even as certain specialty steel imports continue to capture more of the U.S. market. (See attached table for more information on U.S. imports, consumption and market penetration data for specialty steel product lines in 2001/2000/1999.) SSINA is a Washington, DC-based trade association representing virtually all continental specialty steel producers. Specialty steels are high technology, high value stainless and other specialty alloy products. While shipments of specialty steel account for only 2% of all steel shipped in North America, annual revenues of approximately $8 billion account for 14% of the total value of all steel shipped. David A. Hartquist, an international trade attorney with the Washington, DC law firm Collier Shannon Scott, PLLC, serves as lead counsel to SSINA.

2000 and 1999 statistical data in tons follow:

Prepared by Georgetown Economic Services for the Specialty Steel Industry of North America