Commercial Metals Co.’s board of directors declared a two-for-one stock split in the form of a 100% stock dividend on the company's common stock payable January 10, 2005 to shareholders of record December 13, 2004. Each stockholder of record will receive one additional share of CMC common stock for each share held as of the record date.

The company also announced its intent to institute a quarterly cash dividend of 6 cents per share on the increased number of shares resulting from the stock dividend effective with the next cash dividend payment scheduled for January. The effect of the stock dividend combined with the new cash dividend rate will result in stockholders receiving a 20% increase in cash dividend payments.

In making the announcement CMC Chairman, President and CEO Stanley A. Rabin said, "This action reflects CMC's confidence in our near-term as well as long-term business prospects. Today's cash dividend increase coupled with our June 2004 increase adds up to a 50% expansion in our cash dividend rate over the last six months. We are focused on increasing stockholder value with rewarding and sustainable increases in our cash dividend, an important element of that ongoing effort."

Headquartered in Dallas, Texas, Commercial Metals Co. and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic overseas markets.