FOR IMMEDIATE RELEASE:

March 8, 2001

"The crisis stems from record levels of imports, mostly unfairly traded in violation of U.S. trade laws and World Trade Organization (WTO) rules, and unprecedented increases in global stainless steel production capacity," said H.L. Kephart, Chairman of the Specialty Steel Industry of North America (SSINA) and President and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, PA. "The U.S. specialty steel industry is modern, efficient and competitive. It is essential to the national defense and the industrial base. But its future requires a coordinated series of government actions to allow the industry to compete on a fair trade basis in order to retain the jobs of its workers and to generate the level of profitability and access to capital required to stay competitive."

To deal with the crisis, the industry is recommending a multi-faceted program that would involve the Office of the United States Trade Representative, Department of Commerce, Customs Service, and Congress. Said Kephart, "Secretary of Commerce Evans spoke eloquently about 'communicating across boundaries' during his nomination hearing in January. He addressed the importance of an active dialogue among all of the important departments of the executive branch and stated that he would be 'very active in talking to all departments inside government'. Using the Secretary's macro approach as a model, our industry is recommending what we believe is a comprehensive plan which will address the chronic problem of unfairly priced and subsidized foreign specialty steel that floods our market and threatens our industry and its workers."

The plan recommends temporary import restraints using government-imposed mechanisms that can be implemented consistent with WTO rules; more effective import monitoring by the Department of Commerce in persistent dumping cases; and the implementation of an import licensing program by the Customs Service to provide advance warning of import levels.

Additional recommendations include negotiating a government-to-government "Multilateral Specialty Steel Agreement," which would prohibit all subsidies and include provisions addressing global excess capacity issues, as well as enactment of legislation that would ensure the effectiveness of U.S. trade laws and make the section 201 injury standard compatible with the World Trade Organization injury standard.

The industry also asked that funding from any U.S. government agency or international financial institution for the development of foreign steel making capacity be discontinued.

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 to Editors: Attachment to press release: Discussion paper entitled "Recommended Program to Address the Steel Crisis" developed by the Specialty Steel Industry of North America (SSINA).