May 1, 2006 — Sheffield Steel has amended its previously announced merger agreement with Gerdau Ameristeel Corp.'s U.S. operating subsidiary, Gerdau Ameristeel US Inc.

Sheffield shareholders owning approximately 53% of the outstanding shares of Sheffield have agreed to vote in favor of the amended merger agreement which increased the purchase price, subject to certain closing adjustments, to approximately $94 million in cash plus the assumption of approximately $94 million of debt and certain long-term liabilities, net of cash.

The transaction, which is still subject to satisfactory completion of anti-trust and applicable regulatory reviews, formal shareholder approval and other customary closing conditions, is expected to close in the second quarter of 2006.

Gerdau Ameristeel is the second-largest minimill steel producer in North America with annual manufacturing capacity of over 8.4 million tons of mill finished steel products. Through its vertically integrated network of 15 minimills (including one 50% owned minimill), 17 scrap recycling facilities and 43 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern two thirds of North America.

Sheffield Steel is a minimill producer of SBQ and MBQ hot-rolled bar products, concrete reinforcing bar and fabricated products, including fabricated rebar, steel fence posts and railroad track spikes. The company's headquarters and largest manufacturing facility is located in Sand Springs, Okla., where it has an annual billet-making capacity of 650,000 tons. It also has a rolling mill in Joliet, Ill., two fabrication shops in the Kansas City area, and a railroad spike producer in Sand Springs, Okla. Sheffield also owns the Sand Springs Railway, which connects the Sand Springs industrial corridor to Tulsa, Okla.