Birmingham Steel Gives 60-Day Notice to Shut Down Cleveland Operation; Company Will Continue Discussions With Potential Buyers of Facility.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--April 24, 2001

Closing of American Steel & Wire Will Generate $20 Million

in Annualized Cash Savings

Birmingham Steel Corporation (NYSE:BIR) said today that, unless one of the two parties actively negotiating to buy its Cleveland, Ohio, plant completes a purchase within the next 60 days, operations at the facility will be permanently suspended. The Company said that shutdown of the American Steel & Wire Corporation ("AS&W") operation would generate cash savings of $1.6 million per month.

John Correnti, Chairman and Chief Executive Officer of Birmingham Steel, said it was likely the Cleveland plant would be sold within the next 60 days. "We are in active discussions with two parties. There is definite interest in purchasing the facility, but no one has put money on the table." Correnti said recent tightening in the financial markets has made it difficult for potential buyers to obtain financing to purchase the facility.

Correnti said that, over the next 60 days, the Cleveland plant will convert its remaining semi-finished billet inventory into finished product. The Company is willing to adjust its schedule to accommodate a smooth transition, should an agreement to sell the facility be finalized prior to the conclusion of the shutdown.

Correnti added, "We believe the decision to suspend operations at Cleveland is in the best interests of Birmingham Steel and its shareholders. However, we regret the impact this announcement will have on our 250-member workforce at Cleveland. For the past six months, we have been essentially winding down operations in anticipation of selling the Cleveland facility, and we appreciate the diligent efforts of our AS&W employees during very difficult circumstances." Correnti said that, in accordance with the provisions of the Worker Adjustment and Retraining Notification Act ("WARN"), employees at Cleveland would be paid through the next 60 days.

On a separate topic, Correnti said Birmingham Steel's core operations were generating improved financial results because of increased shipments, higher rebar prices and the beginning of the seasonal pick-up in business in the construction sector. "Cash flow continues to improve, and we are seeing increasing availability under our bank revolving credit facility," said Correnti. "The shutdown of Cleveland will result in additional cash flow that will enhance our profitable core operations." Correnti said the Company expected to release its results for the quarter ended March 31, 2001, within the next few weeks.

Birmingham Steel operates in the mini-mill segment of the steel industry. Birmingham Steel's stock 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. Refer to the risk factors in the Company's Form 10-K for the year ended June 30, 2000.