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Rouge Steel Company Forms Rouge Industries, Inc. as Parent Holding Company

31 July 1997

Rouge Steel Company Forms Rouge Industries, Inc. as Parent Holding Company

    DEARBORN, Mich., July 31 -- Rouge Steel Company announced
today the formation of a holding company organizational structure, wherein
Rouge Steel Company became a wholly-owned subsidiary of the newly formed
holding company, Rouge Industries, Inc. .
    According to Carl L. Valdiserri, chairman and chief executive officer of
Rouge Industries, Inc., "The restructuring is symbolic of the emerging growth
of our company's value-added businesses which we consider an important adjunct
to improving the product offerings and cost performance of our core steel
making business.  The new structure will permit us to expand our ancillary
value-added businesses and pursue new opportunities while protecting our
investments in improving the products and cost structure of Rouge Steel
Company, our core steel making business."
    Each holder of Rouge Steel Company Class A Common Stock is entitled to
receive the same number of shares of Rouge Industries, Inc. Class A Common
Stock on a share-for-share basis.  The conversion of shares of Rouge Steel
Class A Common Stock into shares of Rouge Industries, Inc. Class A Common
Stock will be effected through an exchange of certificates.  Until such time
that the certificates are exchanged, holders of Rouge Steel Class A Common
Stock certificates will be deemed to own shares of Rouge Industries, Inc.
Class A Common Stock.  Rouge Industries, Inc. will trade under the symbol
"ROU" on the New York Stock Exchange.
    Rouge Industries, Inc. will hold the outstanding stock of Rouge Steel
Company, QS Steel Inc., and Eveleth Taconite Company.  QS Steel Inc., a
Michigan corporation, presently holds minority equity positions in three
Michigan-based joint venture companies: Shiloh of Michigan, L.L.C., Spartan
Steel Coating, L.L.C. and TWB Company, L.L.C.  Eveleth Taconite Company holds
the company's 45% interest in Eveleth Mines LLC, a Minnesota-based iron ore
mining and pellet producing operation.
    Rouge Steel Company is an integrated flat rolled sheet steel producer with
its manufacturing facilities and corporate offices located in Dearborn,
Michigan.  It principally serves the automotive, converter and service center
markets.

SOURCE  Rouge Steel Company