March 20, 2006 — Bayou Steel Corp. has entered into a definitive agreement with an entity managed by Black Diamond Capital Management, LLC, an existing holder of Bayou Steel's common stock. Pursuant to the new agreement, the Black Diamond entity would acquire all of the outstanding shares of Bayou Steel's common stock.

Subject to certain adjustments at closing (including an adjustment for working capital), the total per-share purchase price for the Bayou Steel shares is expected to be approximately $75, assuming a closing in the quarter ended June 30, 2006. Closing of the transaction is not subject to any financing condition.

Jerry Pitts, President and CEO of Bayou Steel, commented: "Bayou Steel believes the transaction with Black Diamond represents a very attractive per-share price. Black Diamond is a committed strategic partner and this transaction will provide continuity in the present management team as well as a strong financially sound independent company that will ensure the cost-effective modernization and expansion of our key production facilities and processes. The company is committed to remain a strong competitor that will continue to serve our customers, suppliers and employees. We look forward to closing the transaction as soon as the required approvals can be obtained."

Subject to Bayou Steel stockholder approval and satisfactory completion of applicable regulatory reviews, the acquisition transaction is expected to close in the second quarter of 2006.

Bayou Steel Corp. manufactures light structural and merchant bar products in LaPlace, La., and Harriman, Tenn. The company also operates stocking locations along the inland waterway system near Pittsburgh, Chicago, and Tulsa.