June 15, 2006 — Oregon Steel Mills, Inc. announced that it has elected to redeem all of its outstanding 10% First Mortgage Notes due on July 15, 2009, at a price equal to 105% of the principal amount of the Notes being redeemed, in accordance with the terms of the Indenture and Notes.

The principal amount of Notes outstanding to third parties as of Wednesday, June 14, was approximately $303 million. The Notes will be redeemed effective July 15, 2006, and interest on the Notes will be paid to that date. In connection with the redemption of the Notes, Oregon Steel expects to record a charge of $21.1 million in the third quarter of 2006. The charge consists of approximately $15.1 million for the Notes call premium and $6 million for deferred financing costs related to the original issuance of the Notes.

Jim Declusin, the company's President and CEO, stated, "One of our stated priorities over the past two years has been to reduce debt and improve our financial liquidity. This action eliminates the expensive high-yield debt issued in 2002, reduces our net interest expense dramatically and contributes to our ongoing efforts to strengthen our financial position."

The redemption will be funded by a combination of cash on hand and borrowings under a new five-year, $175 million revolving credit facility recently put in place by the company through General Electric Capital Corp.