As compared to the year-earlier quarter, SDI’s net sales of $214 million compared favorably to last year’s second-quarter figure of $158 million, a 35% increase. Total shipments increased from 516,000 to 628,000, up 22%. SDI had net income of $2.0 million in the year-earlier quarter, versus $17.7 million this quarter, a 785% increase. Earnings per share rose from $.04 per diluted share to $0.37 per diluted share this quarter.

The Flat Roll Division continued to attain peak operating results, achieving record production of 600,000 tons in the second quarter. The mill’s strong performance resulted in an operating profit of $66 per shipped ton, or a 94% increase as compared to the first quarter of 2002, a level last achieved in 1997 prior to the steel import crisis.

“SDI’s operating results continued to improve in the second quarter, resulting in our second highest reported quarterly earnings per diluted share since inception,” said Keith Busse, president and chief executive officer. “The fact that we are able to operate the flat roll mill at levels beyond our estimated capacity is providing significant cost compression. This cost reduction combined with increased selling values resulted in a near- record consolidated gross margin percentage of 25% for the second quarter.

“Flat-roll steel pricing has returned to near normalized levels due to reductions in the supply of domestic steel brought about by mill closures and lower levels of imported steel resulting from successful trade cases and the Bush Administration’s Section 201 action. Flat-rolled steel prices continue to strengthen and I am very optimistic about the outlook for the remainder of the year. We have fully booked the flat roll mill for the third quarter at more favorable selling values than were experienced in the second quarter,” Busse said.

Iron Dynamics, SDI’s direct-reduced-iron scrap-substitute subsidiary, is expected to begin experimental production trials in the fourth quarter of this year. Should these trials prove successful, it is expected that SDI could begin commercial production in 2003.

“Our new structural steel and rail mill at Columbia City, Indiana, is substantially complete and has begun limited production of structural products,” Busse said. “We are very pleased with the rapid progress being achieved at the mill. Construction was completed on the structural mill in less than twelve months, which we believe is an industry record for similar projects. The commissioning process is also proceeding very well. After our first melting and casting trials in April and May, we initiated production trials of selected products in the rolling mill in late June. I’m pleased to report that as of this release, we have shipped our first structural products to initial customers.”

SDI expects structural steel production to ramp up gradually throughout the remainder of this year, as the company continues to gain experience in rolling and qualifying a wide variety of structural steel products.

During the second quarter, SDI received approval from the Indiana Department of Environmental Management for the installation of the vacuum degassing equipment required for the production of rail products at the new mill. The company expects construction and equipment installation for the rail portion of the mill to proceed during the third and fourth quarter of 2002, with rail production anticipated to begin early in 2003. “We believe, in time, that the Structural and Rail Division will make a substantial contribution to our earnings,” Busse said.

Conference Call Webcast Available on SDI Web Site

A conference call in which Steel Dynamics’ management will discuss the company’s second quarter 2002 results and the business outlook is scheduled for 11:00 am EDT on July 11, 2002.

You are invited to listen in to the live broadcast of the conference call over the Internet, accessible from Steel Dynamics’ Web site home page. A replay of the Webcast will be available from the SDI Web site for sixty days. A dial-in telephone replay of the call will be become available about 1:00 pm EDT July 11 through midnight, July 15, 2002, at 719-457-0820 (confirmation code: 788570).

The Webcast, as well as other information about Steel Dynamics, can be found at:
www.steeldynamics.com

Forward Looking Statements

This press release contains some predictive statements about future events, including statements related to conditions in the steel marketplace, future growth of Steel Dynamics’ revenues, the company’s future profitability, the construction and operation of new or existing facilities, and the operation and future results of SDI’s related businesses. These statements are intended to be made as “forward-looking,” subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.

We refer you to SDI’s detailed explanation of the many factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K and in other reports which we from time to time file with the Securities and Exchange Commission, available publicly on the SEC’s Web site, www.sec.gov.

Contact: Fred Warner, Investor Relations Manager,
(260) 969-3564 or fax (260) 969-3590
f.warner@steeldynamics.com