FOR IMMEDIATE RELEASE:

Date: September 28, 2001

(Washington, DC) (September 28, 2001) -- Imports of stainless steel rod captured more than three-quarters of the U.S. market 77% in January/June 2001, while almost half of the U.S. market for stainless steel bar and wire -- 47% was lost to imports, according to data released today by the Specialty Steel Industry of North America (SSINA). Additionally, virtually the entire U.S. market for tool steel was lost to imports during the first six months of this year. Imports of tool steel increased 6% over YTD June 2000, resulting in a startling 34-percentage point increase to 96% import penetration.

SSINA Chairman H.L. Kephart, President and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, Pennsylvania stated, "This week the International Trade Commission (ITC) is conducting hearings pursuant to President Bush's order to fully investigate whether steel imports are hurting the domestic industry. The ITC's conclusions may set the stage for possible import curbs. Clearly, as I have so testified at the hearings, the specialty steel industry needs relief. While imports for some specialty steel product lines have decreased this year compared to last, import penetration remains high. Why? Because the level of imports must be analyzed within the larger context of declining U.S. and worldwide consumption, a faltering global economy, and foreign excess capacity that is sent to the United States, the single largest country market for specialty steel."

The statistics reflect that imports of all specialty steel (stainless steel, tool steel, electrical steel) decreased 27% in YTD June 2001 and U.S. consumption declined 22%. Six month import penetration for total specialty steel was 26%, a two percentage point drop from 2000.

Imports of all stainless steel products (sheet/strip, plate, bar, rod, wire) decreased 34% in the first half of 2001 compared to 2000. Concurrently, U.S. consumption decreased 23%. These imports captured 24% of the U.S. market during this period, a four percentage point decrease from the same 2000 period.

"We want to thank all of the Members of Congress who took the time to come to the ITC to testify on our behalf," Kephart continued. "The remarks of many of the members addressed the issue of these uncertain times and the importance of a strong and viable steel industry. Specialty steels have a wide variety of uses -- aerospace, building and construction, and numerous medical applications. America cannot become dependent on foreign producers. We need a strong specialty steel industry for national defense purposes, the health of our economy, and the health and well-being of all Americans."

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 over 14% of the total value of all steel shipped.

David A. Hartquist, an international trade attorney with the Washington, DC law firm of Collier Shannon Scott, PLLC, serves as lead counsel to SSINA. <

________

Note: See attached table for more information on U.S. imports, consumption and market penetration data.

2000 and 1999 statistical data in tons follow:

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