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AK Steel Increases Exchange Ratio for Armco Merger

22 September 1999

AK Steel Increases Exchange Ratio for Armco Merger AK STEEL CORPORATION LOGO AK Steel Corporation logo. (PRNewsFoto)[DM] MIDDLETOWN, OH USA 09/01/1999    

    MIDDLETOWN, Ohio, Sept. 22 -- AK Steel today
announced that it has increased the exchange ratio under its merger agreement
with Armco Inc. so that, upon effectiveness of the merger, holders of Armco
common stock will receive .3829 of a share of AK Steel common stock for each
share of Armco common stock they own.
    The increased exchange ratio will result in the receipt by Armco
stockholders of AK Steel shares representing $7.50 per share of Armco common
stock, based on AK Steel's average closing price of $19.59 per share during
the ten trading day period ended September 21, 1999.  The merger is being
submitted to the stockholders of both companies on September 29, 1999, as
previously announced.
    Based upon the 108,662,797 shares of Armco common stock outstanding on
August 25, 1999 (the record date for the Armco stockholders meeting), AK Steel
expects to issue approximately 41,607,000 shares of its common stock upon
consummation of the merger, which is planned for September 30, 1999.
    AK Steel produces flat-rolled steel products for automotive, appliance,
construction and manufacturing industries.  The company employs about 5,800
men and women in its plants and offices in Middletown, Ohio, Ashland, Kentucky
and Rockport, Indiana.  Armco employs about 5,700 and is a leading producer of
specialty flat-rolled stainless, electrical and galvanized steels with plants
in Butler, Pennsylvania and Coshocton, Dover, Mansfield and Zanesville, Ohio.
Armco also produces snow and ice control products, standard pipe and tubular
products and operates a major industrial park on the Houston, Texas ship
channel.