Birmingham Steel Corporation Terminates Interest in West Coast Scrap Joint Venture.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--June 29, 2000

Birmingham Steel Corporation ("the Company") (NYSE:BIR) today announced it had finalized an agreement with an affiliate of Mitsui & Co., USA, to end the Company's participation in Pacific Coast Recycling, LLC ("PCR"), a scrap venture located in California. Under the terms of the agreement, Birmingham Steel received $2.5 million and was relieved of liabilities associated with PCR.

John Correnti, Chairman and Chief Executive Officer of Birmingham Steel, commented, "We are pleased to announce the end of Birmingham Steel's participation in Pacific Coast Recycling. Upon becoming CEO last December, I began discussions with Mitsui concerning termination of Birmingham Steel's interest in PCR, a scrap exporting operation which was non-strategic to our primary business. As a result of today's agreement, Birmingham Steel has been relieved of all liabilities associated with PCR, including the obligation for the long-term lease with the Port of Long Beach."

Correnti continued, "Termination of our participation in PCR allows our management to focus all of its attention on continuing the turnaround of Birmingham Steel. We appreciate Mitsui's cooperation during the transition to new management at Birmingham Steel, and we wish them great success in continuing the activities of PCR."

The Company said its investment in PCR had been previously written-off, and the agreement to terminate its interest would have no adverse impact on Birmingham Steel's financial statements for the quarter ending June 30, 2000.

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".