AK Steel Files Defamation Suit Against Middletown Union and its Consultant

Middletown, OH, April 25, 2006—AK Steel (NYSE: AKS) said today it had filed a lawsuit against Michael D. Locker, a New York-based union consultant to the Armco Employees Independent Federation (AEIF), the independent union that represents hourly employees who have been locked-out of the company’s Middletown (OH) Works over a contract dispute since March 1, 2006.  The suit also names Locker’s firm, Locker Associates, Inc., and the AEIF, as defendants.  The suit alleges that Locker has defamed AK Steel, and seeks to recover unspecified compensatory and punitive damages in excess of $25,000. 

The company said that suit, filed today in the Court of Common Pleas in Butler County, Ohio, alleges that Locker, president of Locker Associates, Inc., and on behalf of the AEIF, has contacted various AK Steel shareholders, industry analysts and others to make false and disparaging statements about AK Steel’s operating and financial performance.   The suit alleges that Locker’s false statements include statements that few or no coils are being shipped from the company’s Middletown Works and that serious injuries to employees are rampant.  

AK Steel said that the AEIF had paid more than $42,000 to Locker Associates in 2005 and was continuing to utilize the firm in 2006 on its behalf in labor negotiations.  AK Steel said Locker had performed work for the AEIF and other unions representing AK Steel employees on several other occasions dating back to 1996.

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.