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Steel Dynamics Updates
First Quarter Outlook

March 24, 2004 — Steel Dynamics, Inc. expects its first-quarter 2004 financial results to exceed the earnings guidance of $.35 to $.45 per diluted share previously provided during its February 5, 2004 conference call. The company now expects earnings in a range of $.50 to $.60 per diluted share for the first quarter of 2004.

These estimates are based on diluted shares of 48,745,000 at December 31, 2003. However, during the first quarter certain conditions under the terms of SDI’s 4% convertible subordinated note issuance have been met, requiring approximately 6,763,000 additional shares to be considered in the company's calculation of diluted earnings per share at March 31, 2004. Reported earnings for the first and fourth quarters of 2003 were $0.33 and $0.34 per diluted share, respectively.

"Improvement in the demand for flat-rolled and structural steel during the quarter has resulted in stronger selling values than we first anticipated," said Keith Busse, President and CEO of Steel Dynamics. "In addition, in the face of rapidly rising steel scrap and pig iron costs, we initiated a surcharge mechanism in January that has allowed us to recover much of our increased raw-materials costs.

“Because of the improving U.S. economy, these underlying conditions appear to be very favorable, and we expect our earnings to continue to improve in coming quarters, absent any unknown significant events that could knock the recovery off course."

Steel Dynamics is a growing, profitable Indiana-based minimill steel producer. SDI's products include a wide range of hot-rolled and finished sheet steels, wide-flange beams, joists and decking, and round bars. In 2004, we expect to begin production of rails, rebar, merchant bars, and light structural shapes at our existing mills.

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