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Steel Dynamics Adopts New Stock Repurchase Program

10/27/2004 - Steel Dynamics, Inc.’s Board of Directors has authorized the company to buy back up to 5,000,000 shares of its common stock, or approximately 10% of the current shares outstanding.

Dividend Increase

SDI’s Board of Directors also authorized an increase in the company's quarterly cash dividend by approximately 33%. Steel Dynamics' new quarterly dividend will increase to $0.10 per share, resulting in annualized dividend payments of $0.40 per share. The first quarterly distribution of the new dividend will be payable during January 2005 to stockholders of record on December 31, 2004.

"As a result of the company's outstanding operating performance, Steel Dynamics has excellent growth opportunities, a healthy long-term financial outlook and a strong balance sheet. We believe this success enables us to increase the return we are able to deliver to our stockholders through the stock repurchase program and a higher dividend," said Keith E. Busse, Steel Dynamics' President and CEO.

"Looking to the future, we believe that we will have ample free cash flow and debt capacity to grow our base businesses and to be able to take advantage of attractive growth opportunities as they may appear," said Busse.

Steel Dynamics, Inc.’s Board of Directors has authorized the company to buy back up to 5,000,000 shares of its common stock, or approximately 10% of the current shares outstanding.

Such purchases would be made from time to time based upon the market price of the company's stock, the nature of other investment opportunities presented to the company, the company's cash flows from operations, and general economic conditions.

The new buy-back program replaces the company's existing stock repurchase program. The company had an additional 930,000 shares remaining eligible for repurchase under its former program.

Under the company's new buy-back program, purchases are to take place from time to time on the open market or in private transactions, including transactions that may be effected pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The new buy-back program does not require the company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the company at any time without prior notice.