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ISG to Purchase
Georgetown Steel Facility

May 4, 2004 — International Steel Group Inc. has signed a definitive agreement to acquire the assets of the Georgetown Steel Co. facility in Georgetown, S.C.

ISG expects the acquisition to close in June, and plans to restart operations at the plant in the third quarter of 2004. Initial discussions are taking place with the United Steelworkers of America regarding a labor contract and staffing of the plant.

The agreement, which has been approved by the boards of directors of both ISG and Georgetown Steel, is subject to customary closing adjustments and approval by the U.S. Bankruptcy Court.

"The Georgetown facility represents some of the best steelmaking rolling mill capabilities in North America," said Rodney B. Mott, ISG's President and CEO. "Rod market demand is strong and we believe that this acquisition offers opportunities similar to those we have achieved with our other acquisitions."

International Steel Group Inc. is the second-largest integrated steel producer in North America, based on its capacity to cast more than 18 million tons of steel products annually. It ships a variety of steel products from 11 major steel producing and finishing facilities in six states, including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, rail products and semi-finished shapes serving the automotive, construction, pipe and tube, appliance, container and machinery markets.

With annual steelmaking capacity of 1 million tons at its Georgetown, S.C., facility and rolling capacity of 800,000 tons, Georgetown Steel has the capability to produce high-quality wire rod products, which command a significant market premium compared with commodity rod products. Georgetown Steel also has capacity to produce 500,000 tons annually of Direct Reduced Iron (DRI), a scrap substitute. Georgetown Steel filed for Chapter 11 bankruptcy in October 2003 and ceased production.

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