AK Steel and UAW Reach Progressive Accord For Coshocton Works

Bargaining Unit Ratifies First Contract

Middletown, OH, April 02, 2004—AK Steel Corporation (NYSE: AKS) said today that members of the United Autoworkers of America (UAW) have voted to accept a progressive three-year labor agreement covering 460 hourly employees at the company’s Coshocton (OH) Works. AK Steel said the contract is patterned after recently negotiated labor agreements in the steel industry, providing for seven flexible job classifications, a defined contribution pension plan and cost-sharing provisions for active and retiree health care benefits.

"We are pleased that the leadership and members of the UAW have recognized AK Steel’s need for progressive and competitive labor agreements in order to return to profitability," said James L. Wainscott, president and CEO of AK Steel. "The new Coshocton agreement is the first step in bringing AK Steel’s employment costs to a level in balance with our domestic competitors."

The new agreement, ratified Thursday, is in effect until April 1, 2007. The agreement provides for lump sum payments in lieu of base wage increases, establishes phased in wage rates for newly hired employees and implements recently established steel industry vacation and holiday schedules. The agreement is the first labor contract between AK Steel and the UAW since Coshocton Works hourly employees voted to be represented by the UAW in September 2002. The UAW also represents a total of about 1,700 employees at AK Steel’s Butler (PA) and Rockport (IN) Works. The Coshocton Works finishes specialty flat-rolled stainless steels for automotive, appliance and other markets.

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