Birmingham Steel Corporation Announces Agreement Between American Iron Reduction and Lenders.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--June 1, 2000

Birmingham Steel Corporation today announced that American Iron Reduction, LLC, ("AIR") has completed a financial restructuring with AIR's lenders. Birmingham Steel and GS Industries, Charlotte, North Carolina, each own a 50% interest in AIR, a joint venture in Louisiana that produces direct reduced iron. Among other changes, the new agreement defers interest and principal payments on AIR's debt and reduces the amount of annual direct reduced iron purchase requirements by the co-sponsors.

John Correnti, chairman and chief executive officer of Birmingham Steel, commented, "We are pleased that American Iron Reduction has successfully completed a financial restructuring with its lenders. The terms of the new agreement provide financial and operating relief, and also support Birmingham Steel's desire to eventually terminate our participation in the venture."

Correnti continued, "As we have previously stated, AIR is no longer a strategic investment for Birmingham Steel. With AIR's new financing agreement complete, the co-sponsors have enhanced opportunities to explore discussions with parties interested in acquiring the venture. The financial restructuring of AIR is a substantial achievement, and represents yet another significant step in our quest to turnaround Birmingham Steel."

Birmingham Steel operates in the mini-mill sector of the steel industry and conducts operations at facilities located across the United States. The common stock of Birmingham Steel is traded on the New York Stock Exchange under the symbol "BIR."

Except for historical information, the matters described in this press release are forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including economic conditions, market demand factors, equipment breakdowns or failures, Birmingham Steel's success in implementing the restructuring plan, the Company's continued compliance with its financing arrangements and its principal debt agreements, as well as other risks described from time to time in the Company's periodic and special filings with the Securities and Exchange Commission. Any forward-looking statements contained in this document speak only as of the date hereof, and the Company disclaims any intent or obligation to update such forward-looking statements.