Aug. 30, 2006 — 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. Since September 2004, the company has repurchased 7.5 million shares of its common stock.

The company also reaffirmed its third quarter 2006 earnings guidance of $2.05 to $2.15 per diluted share and stated that its fourth quarter earnings are now expected to also be in the range of $2.05 to $2.15 per diluted share, based on its market outlook for the remainder of the year. The company does not expect the strike in West Virginia to have a material impact on its financial performance.

"This buyback program — our third in three years — reflects Steel Dynamics' ongoing commitment to deliver tangible value to our stockholders as we pursue our growth strategy," said Keith E. Busse, Steel Dynamics' President and CEO. "Today's announcement underscores the confidence our Board and management have in our ability to continue generating strong free cash flows that will allow us to invest in our future growth and return capital to our stockholders. Going forward, we believe our solid balance sheet and healthy long-term financial outlook will give us the flexibility to continue generating solid organic growth and take advantage of attractive opportunities that may arise."

Under the company's new buyback program, purchases are to take place from time to time as determined by the company, in open market or private transactions, including transactions that may be effected pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Pursuant to this new program, purchases of shares of the company's common stock will be made based on the market price of the company's stock, the nature of other investment opportunities or growth projects presented to the company, the company's cash flows from operations, and general economic conditions. The new share buyback 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.