Birmingham Steel Corporation Comments On Recent Developments.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--July 13, 2001

Birmingham Steel Corporation (NYSE:BIR) today commented on several recent developments.

The Company said business conditions in the steel industry appear to be improving, primarily as a result of a dramatic decline in steel imports and recent decisions by the U.S. International Trade Commission and the Bush administration to enforce existing anti-dumping laws. The Company said product margins have been consistently and substantially improving since January.

The Company said that, compared with the immediately preceding third quarter of fiscal 2001, it expects to report significantly improved financial results from continuing operations for the fourth quarter ended June 30, 2001. The Company said it expects to release final fourth quarter results, which are currently being reviewed by the Company's independent accountants as part of the normal annual audit, sometime in late August or early September.

The Company noted that in the month of June, continuing operations, which include the Cartersville, Georgia, operation, generated a profit for the first time in 13 months. The Company also said the Cartersville facility achieved cash break-even operating performance in June.

The Company has essentially completed the shutdown of its special bar quality operation in Cleveland, Ohio, and the Cleveland workforce has been reduced to 17 people. The Company said it continues to negotiate with three potential buyers of the Cleveland plant, and it is optimistic a definitive transaction will be finalized. The Company also said there is recent renewed interest in the idled Memphis melt shop, and discussions are underway with two parties concerning the Memphis assets.

As a result of writedowns associated with the Company's decision to divest of certain unprofitable operations, including the Memphis and Cleveland facilities, the Company said its total equity is now below the $50 million minimum requirement for compliance with the quantitative listing standards of the New York Stock Exchange. Also the current market capitalization of the Company of approximately $33.0 million is below the NYSE minimum listing standard of $50.0 million.

The Company said it has filed a plan with the NYSE detailing how it expects within the next 18 months to reestablish compliance with the listing criteria. The NYSE is expected to respond to the Company's plan by the end of August.

As a result of the increased product margins, improvements at Cartersville and reduced cash drain at Cleveland, the Company said it has recently maintained $26 million to $30 million of availability under its revolving credit facility. Revolver availability at March 31, 2001, the end of the third quarter, was approximately $20 million. The Company said it is continuing discussions with its lenders regarding a restructuring of its debt or the possible extension of certain debt maturities, which are currently due April 1, 2002. The Company also remains in compliance with all covenants pursuant to its current debt agreements.

John Correnti, Chairman and Chief Executive Officer of Birmingham Steel, commented, "We are encouraged by the Company's improving financial performance trends and, in particular, the achievement of a profit from continuing operations in the month of June. Given the multitude of challenges Birmingham Steel has faced during the past 18 months, the attainment of this milestone is significant."

Correnti continued, "As I have said before, our management and employees are committed to returning Birmingham Steel to profitability. For the past 18 months, we have aggressively addressed issues within our control, such as operating costs, excess inventories, and selling, general and administrative expenses. Now that market conditions appear to be improving, we look forward to better financial performance as we continue to make progress in the turnaround of 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 the 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, 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.