Kentucky Electric Steel Makes Announcement

Kentucky Electric Steel, Inc. has entered into an amendment of the Asset Purchase Agreement under which KES Acquisition Co., LLC would purchase substantially all of the company's assets. The amendment provides that KES Acquisition will receive a $348,414 credit to the $2,998,414 purchase price at closing, so that the net purchase price to be paid by KES Acquisition is $2.65 million. The sale remains subject to approval by the Bankruptcy Court at a hearing to be held on August 14.

The transaction is subject to higher or better bids for the company's assets, which may be obtained at an auction to be held on August 13, pursuant to the approved Bankruptcy Court procedures. The company has the right to accept a higher and better bid which might be received at the auction and terminate the Agreement with KES Acquisition, subject to payment of a break-up fee. Any competing bids must be submitted by Aug. 11.

A shut down of the company's production facilities has been implemented and this past February the company filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Kentucky with the stated intention to facilitate the orderly sale of its assets.