Steel Dynamics, Inc. announced that on August 4, 2004, a Michigan circuit court judge dismissed General Motors Corp.'s lawsuit against SDI over an alleged multi-year steel purchase agreement.

Oakland County (Michigan) Circuit Court Judge Gene Schnelz issued his ruling from the bench, granting Steel Dynamics' motion to dismiss GM's lawsuit on the basis that GM had failed in its March 18, 2004 complaint to state a legally valid claim against SDI.

In granting Steel Dynamics' motion to dismiss GM's complaint, Judge Schnelz, from the bench, questioned the wisdom of GM's decision to bring its original complaint based upon a January 22, 2003 GM drafted letter to SDI. The court noted that the GM letter, by its very terms, simply constituted "a framework for the future" and contained a provision negating the existence of any GM obligation to purchase any minimum tonnages of steel or any minimum percentage of GM's requirements of the designated flat-rolled steel products. Furthermore, GM reserved the right to unilaterally terminate at any time.

In commenting upon the court's ruling, Keith Busse, SDI's President and CEO, stated: "We are delighted that our position in this controversy with General Motors, which we explained in our March 25, 2004 press release, has now been fully vindicated and that the court has determined that for there to be a legally binding contract both parties must have enforceable obligations. As a company, we are committed to honoring our obligations, and we do so every day, even if circumstances turn against us in a particular transaction. However, we felt strongly that General Motors' attempt to take advantage of the dramatic increase in the market price of steel by asserting a one-way obligation against us was wrong and should be opposed."