---

Rouge Industries, Inc. Comments on Earnings Outlook

5 June 1998

Rouge Industries, Inc. Comments on Earnings Outlook

    DEARBORN, Mich., June 5 -- Rouge Industries, Inc.
announced today that its second quarter 1998 results will be below estimates
made by the analyst community due to ongoing production problems.
    Although demand for steel remains strong and the Company's order book
remains full well into the future, steel shipments in the second quarter of
1998 will be lower than expected.  Blast Furnace production has been adversely
affected in late April and May as the transition to the new Raw Material
Handling System and related anticipated production increases have not been as
smooth as we had hoped.
    "As I have indicated previously, the last two years have been a period of
transition due to the number of projects undertaken to improve our operations
to meet the future demands of our customers," stated Carl L. Valdiserri,
chairman and chief executive officer of Rouge Industries.  "While we are
making important progress in achieving the benefits of these capital
improvements, our learning curve has been a little steeper than we
anticipated.  We have exceeded our original targets on occasion and are
optimistic that we can do so consistently in the future."
    "I am pleased to report," continued Mr. Valdiserri, "that our joint
venture hot dipped galvanizing line, Spartan Steel Coating, L.L.C., began
production early this month and is progressing on schedule.  We remain
confident that the future is bright for the steel industry in general and
Rouge Industries in particular."
    Rouge Industries, Inc. is the parent holding company of Rouge Steel
Company, whose fully integrated steel making facilities and corporate office
are located in Dearborn, Michigan.  Rouge Steel Company produces and markets
premium quality steel products, primarily for the automotive, converter and
service center markets.

    Safe Harbor Statement

    This press release contains forward looking information about the Company.
A number of factors could cause the Company's actual results to differ
materially from those anticipated, including changes in the general economic
climate, the supply of or demand for and pricing of steel products in the
Company's markets, potential environmental liabilities and higher than
expected costs.  For further information on these and other factors that could
impact the Company and the statements contained herein, reference should be
made to the Company's filings with the Securities and Exchange Commission.