Severstal Bids $285.5 Million for Rouge Industries

DEARBORN, Mich., Dec. 21, 2003 -- Rouge Industries, Inc. announced today that its Board of Directors will recommend that the United States Bankruptcy Court for the District of Delaware approve the sale of substantially all of the assets of the Company to Severstal, Russia's second largest steelmaker.

In the auction of the Company assets that was concluded early Saturday morning, Severstal emerged with a top bid, valued at $285.5 million, inclusive of the court approved breakup fee and expense reimbursement. Severstal and United States Steel Corporation were the auction's sole participants. The auction was held in the New York offices of Clifford Chance, Rouge's corporate counsel.

The Company reported that this matter will now move to Wilmington, Delaware, where the final sale hearing is scheduled on Monday, December 22, 2003, before United States Bankruptcy Court Chief Judge, Mary F. Walrath.

"We look forward to the successful completion of the sale," said Carl L. Valdiserri, chairman and chief executive officer of Rouge Industries. "Our many loyal and valued stakeholders are anxious to know the path our business will take going forward. We hope that the sale to Severstal will provide all of our stakeholders a brighter outlook and a more secure future."

On October 23, 2003, Rouge Industries, Inc., including its subsidiaries Rouge Steel Company, QS Steel Inc. and Eveleth Taconite Company LLC, filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the Court. Rouge Steel Company continues to operate its Dearborn, Michigan steelmaking facilities and serve its customers.