FOR IMMEDIATE RELEASE:

March 14, 2001

(Washington, DC) - Total specialty steel imports in 2000 hit the highest level ever, according to year-end data released today by the Specialty Steel Industry of North America (SSINA). Similarly, imports of stainless steel, the industry's largest product line, reached record highs.

The data reflect that specialty steel imports in 2000 increased 7%, to 894,009 from 834,412 tons in 1999. More than a quarter of the U.S. market for specialty steel products - 27% -- was lost to these imports.

Paralleling the total specialty steel data, imports of stainless steel also increased 7% to 692,726 in 2000 from 645,282 tons the previous year, with import penetration increasing to 27%.

Total imports of all long products, i.e., stainless steel bar, rod and wire, captured more than half of the U.S. market - 52%. This was a 7-percentage point increase in import penetration over 1999, with imports of long products in 2000 at 238,840 tons vs. 177,946 tons in 1999.

"The last decade saw imports soar from 373,148 tons in 1990 to last year's 894,009 tons, a stunning 140% increase. Most of these imports enter the U.S. market at prices that are unfair, enjoying excessive subsidization from their home governments. We believe it is time for strong action, and we recently developed a plan of action that would help this modern, efficient and competitive industry combat the record deluge of unfairly traded imports," said H.L. Kephart, SSINA Chairman and President and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, Pennsylvania.

Kephart was referring to a recommended program that the industry made public last week which would involve the Office of the United States Trade Representative, Department of Commerce, Customs Service, and Congress. He explained, "Specialty steel producers have been very aggressive and successful over the last several years in taking targeted actions against specific foreign producers for dumping and foreign government subsidies of particular specialty steel products. The nature and depth of the current import crisis, however, requires a more comprehensive approach by the U.S. government. We look forward to working with the Administration and Congress to implement this plan."

According to the data, while imports of stainless steel sheet/strip decreased 5%, stainless steel plate imports increased 9% in 2000 vs. 1999. Imports of stainless steel plate were 65,622 tons in 2000 compared to 60,305 in 1999. Import penetration for stainless steel plate increased 2 percentage points in 2000 to 26%.

Stainless rod and bar imports saw increases of 25% and 44%, respectively, in 2000, with rod imports capturing a full three-quarters of the U.S. market. This 75% import penetration is a 6 percentage point increase over 1999; stainless bar imports took a 47% bite out of the U.S. market, a 7 percentage point increase. Stainless wire imports increased by 26%.

Imports of tool steel increased 6% to 78,629 tons, reflecting an import penetration of 69% for 2000. Electrical steel imports increased 7% to 122,654 tons; import penetration remained the same at 22%.

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, D.C. law firm of Collier Shannon Scott, PLLC, serves as lead counsel to the SSINA.

Note: See attached tables for more information on U.S. imports, consumption and market penetration data; and bar chart reflecting the 15-month trend of specialty steel imports between October 1999 and December 2000. Attachment to press release: Discussion paper entitled "Recommended Program to Address the Steel Crisis" developed by the Specialty Steel Industry of North America (SSINA).