FOR IMMEDIATE RELEASE:

May 17, 2001

(Washington DC) -- Imports of specialty steel continue to wreak havoc with more than a quarter of the U.S. market lost to imports, according to the latest available data released today by the Specialty Steel Industry of North America (SSINA).

U.S. market share lost 27% to specialty steel imports in January/February of this year, which is no change from last year. For the same 2001 period, imports of stainless steel, the industry's largest product line, captured 26% of U.S. market share, while import penetration for individual subproduct lines ranged from 19% (for stainless steel sheet/strip and stainless steel plate) to a high of 82% (for stainless steel rod).

"Our competitive, viable industry continues to lose substantial market share to waves of dumped and subsidized 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. "Among the major markets, only the United States is largely open and free of subsidies. These unfairly traded imports impart substantial costs not only to the specialty steel industry, but to the U.S. economy and global trading system."

"We know that President Bush and his administration have been actively considering how to address this situation. SSINA respectfully calls upon the President to act promptly to implement both short- and long-term solutions to this pervasive problem," Kephart stated. "A Recommended Program to Address the Steel Crisis," a white paper compiled by SSINA, was sent to the White House on March 8, 2001.

The data reflect that specialty steel imports and consumption declined 18% and 19%, respectively, in YTD February 2001 vs. the same 2000 period. Stainless steel imports saw a 26% drop, while consumption was down 21%. According to Kephart, however, February was the second consecutive month of increasing stainless steel imports. Explained Kephart, "In December 2000, total stainless steel imports were 39,383 tons. In January 2001, imports jumped to 45,176 tons, a 10% increase over the previous month. February saw another increase in total stainless steel imports to 46,216 tons. These numbers indicate that imports continue to land on our shores in huge and growing numbers."

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

Note to Editors: 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 December 1999 and February 2001.