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U.S. ENTERPRISE CORP., HOLDING COMPANY FOR WASHINGTON STEEL CORPORATION, EMERGES FROM BANKRUPTCY REORGANIZATION

 U.S. ENTERPRISE CORP., HOLDING COMPANY FOR


WASHINGTON STEEL CORPORATION, EMERGES FROM BANKRUPTCY REORGANIZATION
 WASHINGTON, Pa., Feb. 20 /PRNewswire/ -- Washington Steel Corporation annouced today that a federal bankruptcy court judge has approved a plan of reorganization for U.S. Enterprise Corp. (USE), a holding company formed to accommodate an accelerated Chapter 11 proceeding.
 Thomas C. Graham, Washington Steel chairman and chief executive officer, said, "The action yesterday in Chicago by U.S. Bankruptcy Court Judge Ronald Barliant allows Washington Steel Corporation to concentrate entirely on completing the production and marketing improvements that are now under way and on continuing our discussions with a number of potential buyers.
 "In keeping with our expectations, USE has emerged from reorganization in less than a year, and Washington Steel is competing once again from solid financial footing."
 Graham briefed members of the news media today in Pittsburgh.
 The announcement came seven months after Graham, formerly vice chairman of steel and diversified industries at USX Corp., assumed responsibility for managing Washington Steel.
 On Tuesday, Washington Steel announced that it had entered an agreement with lenders providing a source of long-term credit for operating expenses and capital improvements.
 "Citicorp, as lead bank, and other members of the lending group showed a high degree of confidence in the future prospects of Washington Steel and an exceptional level of support for the initiatives we've undertaken to ensure our success," Graham said.
 Washington Steel and its business units have remained profitable despite difficult industry conditions and were not participants in the Chapter 11 filing by USE in April 1991.
 The bankruptcy case stemmed from debt incurred in the acquisition of the melting and rolling facilities that comprise the Mill Group of Washington Steel.
 "Throughout the reorganization process, we maintained normal operations while at the same time implementing improvements that significantly increase production at our mills in Pennsylvania and Ohio and greatly enhance the marketing strength of our service center network," Graham said. "Now that the court proceedings are behind us, we can really get down to the business at hand."
 Washington Steel is a producer of stainless steel flatrolled products with operations in Houston and Washington, Pa., and Massillon, Ohio. Its Service Center Group, headquartered in Wheeling, Ill., has seven locations in the United States and Canada.
 -0- 2/20/92
 /CONTACT: Mark G. Essig of Washington Steel, 412-229-2806/ CO: Washington Steel Corporation ST: Pennsylvania IN: MNG SU:


CD -- PG002 -- 0808 02/20/92 09:30 EST
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Date:Feb 20, 1992
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