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Steel Dynamics Forecasts
Strong 2004 Performance

April 7, 2004 — At a presentation before a meeting of the New York Metals Analyst Group in New York City, Keith E. Busse, President and CEO of Steel Dynamics, Inc., expressed confidence that continued strong market demand and better than anticipated contributions from the company's growth initiatives, point to record earnings in 2004 on a fully diluted basis.

In spite of a volatile scrap market that has seen scrap prices for No. 1 factory bundles recede some $35 to $40 within the past two weeks, after reaching a record $300-plus in March, Mr. Busse downplayed the impact of scrap surcharges on results and emphasized that his 2004 positive outlook is a function of his assessment of overall supply/demand market conditions and the fact that the company's expansion projects are yielding positive results more rapidly than anticipated.

Busse stated that when the company formally announced its scrap surcharge program in February, it clarified that this temporary measure, which was instituted with reluctance, was simply intended to neutralize the wild swings in a runaway scrap market and would rise or fall in relationship to that market. Following higher-than-anticipated steel demand in the first quarter, the company is seeing continued strong demand. The order book is strong in the second quarter, and Busse believes that as the year progresses, steel demand will remain robust in a continued economic recovery. As a result, Steel Dynamics should see continued strong profits throughout the remainder of the year, as shipping volume continues to increase and price levels remain favorable.

The investments that the company has made in new production facilities over the past several years have now begun to pay off, according to Busse. The Structural and Rail Division, in its second full year of operation, is expected to make a significant contribution to profits, and the new Bar Products Division that started up at the end of 2003 is expected to be profitable before the end of 2004. The Flat Roll Division, which continues to perform extremely well, is benefiting from the profitable start-ups of its new paint line and the third galvanizing line at Jeffersonville. New Millennium Building Systems is experiencing stronger sales and is expected to be profitable this year as well. In addition, both ironmaking projects hold great promise for the future, helping to alleviate scrap resource pressures, as well as potentially provide additional meaningful profitability to the company.

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