AK Steel’s CEO Applauds Kentucky Officials For Support Of Ashland Works Modernization Project

Middletown, OH, March 26, 2004—James L. Wainscott, president and CEO of AK Steel (NYSE: AKS), today expressed his gratitude on behalf of all AK Steel employees to Kentucky Governor Ernie Fletcher, Economic Development Cabinet Secretary Gene Strong, Commerce Secretary Jim Host, the Kentucky General Assembly, and Ashland community leaders for their support of legislation that will provide enhanced tax incentives assisting AK Steel in a $65 million modernization of its Ashland Works located in eastern Kentucky.

The bill, which was signed today by Governor Fletcher, was approved by the Kentucky Senate by a vote of 37-0, and by the Kentucky House of Representatives by a 91-0 vote earlier this month.  The legislation was sponsored in the General Assembly by Senate majority caucus leader Charlie Borders and advanced in the House by majority floor leader Rocky Adkins, with the strong support of the Governor. The legislation will also benefit other Kentucky manufacturers who invest in the state.

“We greatly appreciate the overwhelming support that AK Steel has received in the Commonwealth of Kentucky,” said Mr. Wainscott.  “This incentive legislation is a major step in helping AK Steel move forward with a significant investment in our Ashland Works.”

“With approval of the incentives, AK Steel will now proceed with the project, which is necessary to help preserve the viability of the cokemaking, ironmaking and steelmaking units of the Ashland Works,” Mr. Wainscott said.  He noted that the project will enable the plant to produce higher quality steel products, primarily for AK Steel’s automotive and appliance customers.

The project includes a vacuum degassing facility associated with the steelmaking shop, and a modification to the continuous slab caster.  The equipment will be operational in 2005.

Mr. Wainscott added that he looks forward to the support of the United Steelworkers of America (USWA) and Paper, Allied-Industrial, Chemical and Energy International Union (PACE), representing hourly employees at the plant, in working together to further strengthen the future of Ashland Works and help the company return to a sustainable level of profitability.

Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products for automotive, appliance, construction and manufacturing markets, as well as tubular steel products.