Oct. 12, 2006 — Chaparral Steel Co.’s Board of Directors has authorized the initiation of a $0.10 per common share quarterly cash dividend. The initial quarterly dividend will be payable on November 15, 2006 to shareholders of record on November 1, 2006.

"Based on our strong cash flow, and our optimism for our business and industry, we believe this is an ideal time to begin returning capital to our shareholders in the form of a quarterly cash dividend," stated Tommy A. Valenta, President and CEO.

Chaparral Steel’s Board of Directors also authorized the repurchase of up to $100 million of the company's common stock. The share repurchase program will be undertaken through open-market and privately-negotiated transactions in accordance with applicable federal securities laws. The timing and amount of any repurchases will be determined by the company based on a variety of factors. The new share repurchase program does not require the company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the company at any time without prior notice.

Headquartered in Midlothian, Texas, Chaparral Steel Co. is the second-largest producer of structural steel beams in North America. Chaparral is also a significant supplier of steel bar products, and is a leading North American recycling company.