AK Steel Receives Payment Related To Combined Metals Recapitalization

West Chester, OH, December 20, 2007—AK Steel (NYSE: AKS) today said that it has received a cash payment of $42.6 million resulting from the recapitalization, on December 20, 2007, of Combined Metals of Chicago L.L.C. (Combined Metals), a private company in which AK Steel holds a 40% equity interest.

The cash payment represents a partial repayment of principal and accrued interest on a $35 million receivables note held by AK Steel. As a result of the transaction, AK Steel said that it will record a pre-tax benefit of $12.3 million in interest income, which will be recognized in AK Steel´s fourth quarter 2007 financial results. Following the recapitalization, AK Steel continues to have a 40% equity interest in Combined Metals. The results of Combined Metals are not consolidated in AK Steel´s financial statements.

Combined Metals cold reduces, anneals, slits and polishes flat-rolled stainless and alloy steels in facilities located in Bellwood, Elgin and Hampshire, Illinois and Ann Arbor, Michigan.

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