Cleveland-Cliffs announces regular quarterly dividend and expansion of stock repurchase program.

CLEVELAND--(BUSINESS WIRE)--May 13, 1997--At its Annual Shareholders Meeting today, Cleveland-Cliffs Inc announced that its Board of Directors declared a quarterly dividend of $.325 per common share. The dividend is payable June 2, 1997 to shareholders of record at the close of business on May 23, 1997. The rate is unchanged from the previous quarterly dividend.

In addition, the Company announced a 500,000 share increase in its stock repurchase program. M. Thomas Moore, Chairman and Chief Executive Officer, said "Periodic repurchases complement our strategic plan to enhance shareholder value."

At the Annual Meeting, shareholders re-elected the Board of Directors and approved an increase in authorized shares for the management equity incentive plan. The Company gave tributes to E. Bradley Jones and Jeptha H. Wade who retired from the Board after more than 12 and 40 years of service, respectively. Moore said, "We are deeply grateful for the wise counsel and leadership provided by these distinguished directors. They will be missed."

In other remarks, Moore noted the Company's record 1996 results, its announcement last year of the Circored reduced iron joint venture in Trinidad with LTV Corporation and Lurgi AG, its recent agreement to acquire an additional 15 percent interest in the Wabush Mine in Canada, its focus on continuous improvement of its core operations, and its growth strategy. In commenting on the business outlook, he said "Steel industry operating rates remain strong, and our steel company partners have nominated their production entitlements in 1997 from Cliffs-managed mines. A substantial majority of Cliffs' production entitlements is already committed under multi-year contracts, and our total sales volume in 1997 is expected to be about 90 percent of our effective sales capacity. If current steel operating rates continue, we expect higher 1998 sales volume since certain unusual reductions in 1997 customer requirements are not expected to repeat."

The Company's initial share repurchase program, of up to 600,000 shares, was authorized by the Board of Directors in January, 1995. In July, 1996, the stock repurchase program was increased by 400,000 shares to a total 1.0 million shares, or about 8 percent of the originally outstanding shares.

As of May 12, the Company has acquired 821,900 shares under the existing stock repurchase authorization, for a total cost of $32.0 million. There are currently 11.4 million shares outstanding. Acquired stock will initially be retained as treasury stock. No duration has been established for completion of the program.

Based on the May 12 closing price of $43.00 per share, the cost of the increased program would be $21.5 million. If fully implemented, the cost of the total program would be $61.2 million.

This news release contains forward-looking statements of the Company's production and sales volume which reflect forecasts of activity in the steel and iron ore industries. Actual production and sales volumes could differ significantly from current expectations due to changes in steel or iron ore demand, steel imports or competition.

Cleveland-Cliffs is celebrating its 150th university in 1997. Its subsidiaries manage six iron ore mines in North America. It has equity interests in five of the mines, holds a major iron ore reserve position in the United States, is a substantial iron ore merchant, and is constructing a joint venture plant in Trinidad to produce high-quality iron briquettes.

To obtain faxed copies of Cleveland-Cliffs Inc news releases dial 1-800-778-3888. News releases and other information on the Company are available on the Internet at http://www.businesswire.com/cnn/clf.htm .

CONTACT: Cleveland-Cliffs Inc

Media: David L. Gardner, 216/694-5407

Financial Community: Fred B. Rice, 800/214-0739