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ARMCO STEEL COMPANY SIGNS LETTER OF INTENT TO SELL ITS COIL PAINT FACILITY TO MATERIAL SCIENCES CORPORATION

 MIDDLETON, Ohio, April 7 /PRNewswire/ -- Armco Steel Company (ASC) and Material Sciences Corporation today announced signing of a letter of intent for a subsidiary of Material Sciences Corporation to purchase the assets of ASC's coil paint facility in Middletown. The sale is subject to a definitive contract and other closing conditions.
 The purchase price of the proposed agreement was not disclosed. The companies hope to finalize the sale by June 30, 1993.
 Officials of Material Sciences Corporation of Elk Grove Village, Ill., say they intend to offer employment to the current workforce at the facility. Through its wholly-owned subsidiary, Pre Finish Metals, Material Sciences operates five coating lines in four U.S. locations and has been coil coating steel and other metals for over 45 years. Pre Finish Metals' engineering group helped design and build the Armco coil paint facility in 1972.
 "ASC and Pre-Finish Metals have agreed in principle to a long-term partnership to use our joint expertise to supply quality coil coated steel to all current Armco customers," Mark Essig, ASC vice president of sales and marketing said. "ASC remains committed to our coil coated steel products. We believe our agreement with Pre Finish Metals will significantly strengthen our abilities to serve our customers."
 ASC had previously announced its intention to sell this unit. The Middletown facility employs about 70 hourly and salaried workers and has an annual capacity of about 200,000 tons per year of shipped product. It produces prepainted steel coils used in applications like building, roofing and siding panels; appliance wrappers, fuel tanks, lighting fixtures, valve covers and doors.
 "Our strategic focus is the production of excellent quality flat- rolled carbon sheet steel," said Thomas C. Graham, ASC president and chief executive officer. "That effort requires all of the attention and resources we can make available. Material Sciences is a long- established and growing company in the coil coated product line and should benefit with the addition of Armco's facility and its experienced employees."
 G. Robert Evans, chairman and chief executive officer of Material Sciences, said the purchase of ASC's coil paint facility will complement his company's growing business. "Armco Steel Company's 20-year presence in the coil coated industry has established a solid customer base and a framework of expertise that we intend to capitalize and build upon."
 Armco's coil paint facility has about 70,000 square feet of operating, storage and office space on about 50 acres. It can apply 180 different coatings of zinc-rich paint, lubricants, adhesives, primers and clear coats on one-side, multi-side or in multiple and different configurations. The line can apply a complete range of paint types in a full spectrum of colors.
 Armco Steel Company is a 50/50 joint venture between Armco Inc. (NYSE: AS), Parsippany, New Jersey and Kawasaki Steel Corporation, Tokyo, Japan. Armco Steel Company produces carbon flat rolled steels for automotive, appliance, construction and manufacturing markets. The company employs about 6,900 men and women in plants and offices in Middletown and Ashland, Kentucky.
 Material Sciences Corporation develops and commercializes continuously processed, coated materials technologies. Its products are sold to a wide variety of manufacturers and distributors of industrial, commercial and consumer products. The company operates five manufacturing facilities in the U.S. and sells its products and technologies around the world.
 -0- 4/7/93
 /CONTACT: Jim Weyers, Armco Steel Company, 513-425-5876/
 (AS)


CO: Armco Steel Company; Material Sciences Corporation ST: Ohio, Illinois IN: MNG SU:

BM -- CL001 -- 3685 04/07/93 09:32 EDT
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Date:Apr 7, 1993
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