International Steel Group Inc. has signed a letter of intent with Sun Coke Co., a subsidiary of Sunoco, for a 15-year supply agreement totaling over one million tons per year beginning in 2006.

Under terms of the agreement, Sun Coke will expand supply from its Haverhill, Ohio, facility, which is currently under construction and scheduled to begin supplying ISG in the first quarter of 2005. Sun will double the plant's originally planned 0.55 million tons-per-year capacity. Beginning in the first quarter of 2006, Sun will supply 1.1 million tons of coke to ISG from the expanded Haverhill facility.

The agreement is contingent on execution of related transportation agreements, granting of certain local and state incentives, permits from various agencies and approval by both companies' boards of directors.

"ISG has formed a strong partnership with Sun Coke because of Sun Coke's combination of non-recovery technology and operational capabilities. The high quality of non-recovery coke complements ISG's total coke requirements and furnace productivity demands," said Rodney B. Mott, ISG's President and CEO. "Our relationship with Sun Coke, as well as the other steps we are taking to advance our coke supply strategy, will help to ensure that we have long-term, high-quality coke supplies and will reduce the impact of market volatility on our costs," Mott added.

ISG also announced a 10-year coke supply arrangement with EES Coke Battery, LLC, a subsidiary of DTE Energy Services. Approximately 0.7 million tons of coke will be supplied beginning in 2005, and almost 1 million tons, the total plant output, will be supplied by EES thereafter. The plant is located in River Rouge, Mich. DTE Energy Services also supplies ISG coal injection at Sparrows Point, Md., and owns and operates one of two coke batteries located at ISG's Burns Harbor, Ind., steelworks.

"The completion of these agreements provides us with substantial progress toward our goal of fulfilling almost all of our coke needs through ISG-owned resources and under long-term contract supply agreements. We are also continuing to evaluate additional coke production and supply options. We believe our coke supply strategy will provide the right balance of flexibility and control over our raw material supplies," Mott noted.

International Steel Group Inc. is one of the largest steel producers in North America. It produces a variety of steel products including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, rail products and semi-finished shapes to serve the automotive, construction, pipe and tube, appliance, container and machinery markets.