Nucor Confirms Letter of Intent to Purchase Birmingham Steel Assets

Nucor Corporation, Charlotte, today confirmed that it and Birmingham Steel Corporation have signed a non-binding letter of intent pursuant to which Nucor would purchase substantially all of Birmingham Steel's assets for $615 million in cash, and that Nucor and Birmingham Steel are currently engaged in exclusive discussions regarding a possible transaction.

Daniel R. DiMicco, Nucor Vice Chairman, President and Chief Executive Officer, said, "We are pleased to have taken this step toward a transaction that would, if consummated, be accretive to Nucor shareholders and would also benefit our customers and employees. We believe that the agreed upon purchase price is appropriate given the assets to be acquired. We look forward to signing a definitive purchase agreement."

The transaction contemplated in the letter of intent is conditioned upon finalizing a definitive agreement with Birmingham Steel and related agreements in support of the transaction with Birmingham Steel's senior secured lenders. These agreements would require that the transaction with Birmingham Steel be completed pursuant to a pre-arranged Chapter 11 bankruptcy filing by Birmingham Steel approved by the bankruptcy court in Delaware.

Nucor expects that the contemplated transaction, if consummated, would increase its earnings per share within 12 months after completion. The company said there can be no assurance that the letter of intent will result in a definitive agreement, and that Nucor will have no further comment concerning the contemplated transaction until a definitive agreement is signed or the discussions with Birmingham Steel are terminated.

Assets to be included in the contemplated purchase are Birmingham Steel's four operating mills in Birmingham, Alabama; Kankakee, Illinois; Seattle, Washington and Jackson, Mississippi, with an estimated combined annual capacity of approximately 2.0 million tons. Other included assets are the mill in Memphis, Tennessee, which is currently not operating; the assets of Port Everglades Steel Corporation; the assets of the Klean Steel division; Birmingham's ownership in Richmond Steel Recycling Limited; as well as all inventory and receivables related to the acquired assets.

Nucor is the largest recycler in the United States. Nucor and affiliates are manufacturers of steel products, with operating facilities in ten states. Products produced are: carbon and alloy steel -- in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing.