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Rouge Steel Production Disruption

2 February 1999

Rouge Steel Production Disruption

    DEARBORN, Mich., Feb. 2 -- Rouge Industries, Inc.
reported today that an explosion and fire at the Rouge Complex Powerhouse on
Monday, February 1, 1999 resulted in the loss of electricity, steam and other
utilities to virtually all of the facilities of its major operating
subsidiary, Rouge Steel Company.
    According to William Hornberger, vice president, Employee Relations and
Public Affairs, "The loss of power has resulted in the temporary shutdown of
our steel making facilities and the Company's corporate offices.  We are
presently assessing the availability of alternate sources of electricity and
steam which will allow Rouge Steel to resume partial operations."
    Rouge Steel's facilities were idled in an orderly fashion to minimize the
potential effect of damage related to the loss of utilities.  Company
operations personnel have indicated that there has been some physical damage
to Rouge Steel's steel making facilities but the full extent of the damage has
not yet been determined.
    "We appreciate the support that we are receiving from many of our valued
suppliers including Detoit Edison and Consumers Energy, who have dispatched
their engineers to assist in the formulation of a plan to restore utilities to
Rouge Steel," concluded Hornberger.
    The Rouge Complex Powerhouse is jointly owned by Rouge Steel Company and
Ford Motor Company under a joint tenancy arrangement.  It produces
and distributes electricity, heating and processing steam, mill water
compressed air and turbo air and serves as the central distribution hub to
Ford and Rouge Steel facilities in the Rouge Complex.