Court Approves Rouge Industries Sale to Severstal

DEARBORN, Mich., Dec. 22, 2003 -- Rouge Industries, Inc. today announced that the United States Bankruptcy Court for the District of Delaware in Wilmington (the "Court") has approved the sale to Severstal of substantially all of the Company's assets pursuant to the terms of the asset purchase agreement between the parties.

As previously announced, Severstal emerged as the highest and best bidder in a competitive auction held on December 19, 2003 for substantially all of the Company's assets, subject to bankruptcy court approval.

The Company expects to use the proceeds of the sale to repay its creditors and to fund administrative expenses. Accordingly, there will not be any amounts available to be distributed to the Company's stockholders from the sale. Completion of the transaction remains subject to certain conditions with a final closing expected by January 30, 2004.

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