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Rouge Steel BOF Resumes Operation After 12-Hour Outage

24 January 2000

Rouge Steel BOF Resumes Operation After 12-Hour Outage

    DEARBORN, Mich., Jan. 21 -- Rouge Industries, Inc.
reported today that the damage resulting from a mechanical system
failure at its Basic Oxygen Furnace facility (BOF) on Friday, January 7, 2000,
will require approximately five to six weeks to repair and will result in a
charge to earnings of $2.5 million.  The total insured loss is estimated at
approximately $6 million.
    The BOF returned to operation following a 12-hour production delay and
continues to operate at approximately 85% of its normal production capability.
    There was no impact to the Company's finishing and shipping operations and
the incident is not expected to impact deliveries to Rouge Steel's customers.
    Preliminary investigation revealed that an accumulation of steelmaking
particulate in the BOF vessel's air scrubber system may have become dislodged
and dropped into the operating vessel.  The rapid conversion of the moisture
in the particulate to steam caused isolated but heavy damage to the vessel's
cooling hood and air evacuation system, located immediately above that vessel.
Contrary to some news media reports, there was no physical evidence of any hot
metal or slag explosion at the time of the incident and was no damage to the
steelmaking vessel.
    Production was resumed later that same day using the BOF's other undamaged
vessel after facility, equipment and safety checks were performed.
    There were no serious injuries resulting from the incident, which remains
under investigation.

    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 the 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.