News From USWA: Ratification of USS-National Agreement ``Another Milestone in Industry Consolidation''.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--May 19, 2003

Rank-and-file steelworkers at United States Steel Corp. (NYSE:X) and National Steel Corp. (OTC BB:NSTLB.OB) have overwhelmingly approved a new labor agreement covering the combined operations of both companies, the United Steelworkers of America announced here today.

"This historic agreement marks the first time that workers at two operating integrated steel companies have negotiated an agreement to facilitate the merger of their operations into a single entity," said USWA International President Leo W. Gerard, who called the ratification "a qualitative step forward in the consolidation of the American steel industry -- a restructuring our union has been strongly advocating since last September."

The new contract with U.S. Steel follows principles the USWA's Basic Steel Industry Conference (BSIC) outlined in September 2002 as guideposts to protect the interests of steelworkers and retirees during any process of consolidation, as did the union's milestone agreement with International Steel Group (ISG) covering the former operations of LTV Steel and Acme Steel.

Like the earlier agreements, it establishes reduced management staffing, provides workers a stronger voice in productivity improvements, secures industry-leading wages and incentives, and takes the historic step of securing commitments to invest in North American steel making facilities.

Effective on the closing date of U.S. Steel's acquisition of National Steel, the agreement:

-- Secures substantial defined benefit pensions for USWA members,

protects the benefits of current USS retirees and provides a

meaningful Benefit Trust for National's USWA retirees.

-- Reduces considerably management's ability to shift bargaining

unit work to outside contractors.

-- Provides a substantial one-time incentive payment for

retirement-eligible Steelworkers who voluntarily choose

transition into retirement.

-- Significantly reduces the management workforce at both U.S.

Steel and National Steel operations.

-- Recommits U.S. Steel to long term investments in American

steel making, including raw materials facilities which the

company had sought to sell prior to these negotiations.

"Securing U.S. Steel's renewed commitment to American steelmaking was a high priority for us," said Tom Conway, BSIC Secretary and Chairman of the union's U.S. Steel Negotiating Committee. "We're very proud of what we've accomplished."

Harry E. Lester, Director of USWA District 2, which includes Michigan, where a significant portion of National's operations are located, noted that the agreement "moves our members from the brink of disaster toward greater job and retirement security."

Jim Robinson, Director of USWA District 7, which covers Illinois and Indiana, added that the new agreement, which expires on September 1, 2008, "will secure our members' wages and benefits as the economy heads toward an even steeper downturn, and also ensures that investment in its North American operations will now be a priority for U.S. Steel."

www.uswa.org