Birmingham Steel Corporation Comments on Action by Stockholder Group.

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Aug. 13, 1999--

Birmingham Steel Corporation (NYSE: BIR) today said it has been notified by a stockholder group that the group intends to propose a slate of nine directors at the Company's 1999 annual meeting of stockholders, and that the group has identified its nominees.

Birmingham Steel stated: "We are extremely disappointed that this stockholder group has rejected our good-faith efforts to enter into constructive dialogue aimed at discussing issues of mutual interest and concern. Instead, the group seems determined to pursue a course of action that can only serve to distract management and the Board from the important task of implementing the Company's strategic programs. We call upon the stockholder group to avoid imposing on the Company's stockholders, customers and employees the cost and distraction of a proxy contest. While the Company remains willing to engage in constructive dialogue, absent a satisfactory resolution of the threatened proxy contest, the Company intends to take all appropriate action to protect the interests of all of the Company's stockholders."

Birmingham Steel operates in the mini-mill sector of the steel industry and conducts operations at facilities located across the United States. The Company produces steel reinforcing bar, merchant products and SBQ (special bar quality) bar, rod and wire. The common stock of Birmingham Steel Corporation is traded on the New York Stock Exchange under the symbol "BIR."