Birmingham Steel Corporation Announces Agreement to Sell Substantially All Assets to Nucor Corporation.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--June 3, 2002

On May 30, 2002, Birmingham Steel Corporation (OTCBB:BIRS) announced it had reached a definitive agreement with Nucor Corporation (NYSE:NUE) to sell substantially all the assets of Birmingham Steel and its subsidiaries (the "Company") for $615 million in cash. Pursuant to the terms of the definitive agreement, Birmingham Steel today filed a Chapter 11 bankruptcy proceeding before the United States Bankruptcy Court for the District of Delaware for purposes of confirming and implementing the sale to Nucor. The Company also filed various "first day" motions with the Court seeking orders to provide for, among other things, financing sufficient to continue current operating levels until closing of the transaction and for payment of pre-petition payables to the Company's critical suppliers. The Court will hold a hearing on the Company's first day motions on the afternoon of June 4, 2002.

The proceeds from the sale to Nucor will retire Birmingham Steel's secured debt to various lenders. The Company and its secured lenders have negotiated a pre-arranged Chapter 11 plan agreement which provides for, among other things, that secured lenders pay a portion of the sales proceeds to unsecured creditors and $15 million, or approximately $.47 per share, to shareholders. Subject to certain conditions which include approvals from the Court and required regulatory agencies, the Company anticipates completing the sale to Nucor and making distributions to shareholders and unsecured creditors by December 31, 2002.

John D. Correnti, Chairman and CEO of Birmingham Steel Corporation, commented, "As we have previously stated, the agreement with Nucor required a filing under Chapter 11 in order to implement the transaction. During the bankruptcy process, we expect to continue normal operations and maintain our commitment to providing the highest level of service to customers. Also, with the support of our secured creditors, we expect to receive approval to use up to $28.0 million to pay pre-petition claims of our critical suppliers." Correnti added that a major goal of the Company is to maintain relationships with suppliers. "Our suppliers are necessary to maintain the value of the Company's operations," he said.

Correnti also said the Company is committed to preserving its work force through the closing of the sale. Correnti noted the Company's payrolls to its employees will continue uninterrupted through the bankruptcy process. "All wages, salaries and benefits to employees will be paid in full and in the normal course," Correnti said.

Correnti also said that the Company expects to sell to other buyers certain assets not included in the sale to Nucor, including an idled rolling mill in Joliet, Illinois.

Birmingham Steel operates in the mini-mill sector of the steel industry and conducts manufacturing, distribution and recycling operations in facilities located across the United States. The common stock of Birmingham Steel is traded on the over the counter bulletin board under the symbol "BIRS."

Except for historical information, the matters described in this press release are forward-looking statements within the meaning the safe-harbor provisions of the Private Securities Litigation Reform Action of 1995. These forward-statements are subject to risks and uncertainties that may cause actual results to differ materially, including economic conditions, market the main factors, equipment breakdowns or failures, the Company's continued compliance with its financing arrangements and its principle 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. The forward-looking statements contained in this document speak only as the date hereof, and the Company disclaims any intent or obligation to update such forward-looking statements.