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Rouge Steel Set to Resume Limited Operations

5 February 1999

Rouge Steel Set to Resume Limited Operations

    DEARBORN, Mich., Feb. 4 -- Rouge Industries, Inc.
announced today that partial electricity and steam service has
been restored to Rouge Steel Company facilities following the explosion and
fire in the Rouge Complex Powerhouse on Monday, February 1, 1999 that idled
steel making operations.  The partial restoration of utilities has been
accomplished through a combination of new power lines from Detroit Edison and
temporary generators and package boilers.
    According to Bill Hornberger, vice president, Employee Relations and
Public Affairs for the Company, "In the last 72 hours, we have completed the
preliminary assessment of our finishing facilities and steel making equipment
and have determined that we will be ready to resume production as soon as
utility services are restored which the Company believes should occur within a
matter of days.  Double Eagle Steel Coating, the Company's joint venture
electrogalvanizing facility located adjacent to the Rouge Complex, will resume
operations soon following the installation of a portable process steam boiler.
    "We are hopeful that we can complete the evaluation of the damage in our
primary operations within the next week, but much will depend on our access to
the Powerhouse to inspect the equipment that was dedicated exclusively to
Rouge Steel," added Hornberger.  "We are presently unable to determine when
production at primary operations facilities will resume."
    "We've continued to ship finished products on a limited basis and we're
hopeful that we will be able to further increase shipping operations once full
power is restored to finishing operations," said Ron Nock, vice president,
Sales and Marketing.  "Our sales and customer service people have been
updating our customers regarding the available finished inventory and plans to
resume production.  We have acquired 300,000 tons of slabs and coils to
replace lost blast furnace production.  We appreciate the support and offers
of assistance from our customers, our suppliers and other domestic steel
companies."
    Rouge Industries has a substantial insurance program that provides
coverage for damage to property destroyed, interruption of business operations
and expenses incurred to minimize the period of disruption to operations.
Although the full extent of the damage to the Rouge Complex Powerhouse and the
resulting financial effect on the Company's operations have not been
determined, Rouge Industries believes that such damage and losses resulting
from interruption of its operations should be covered by its insurance
program.

    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 and 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.