In comparison to the third quarter of 2001, SDI’s net sales for the third quarter of 2002 increased 53 percent and consolidated shipments increased 20 percent. Net income increased by $27 million and earnings per diluted share were $.56 higher than the same period in 2001.

The Flat Roll Division continued to attain outstanding operating results. The Butler mill set yet another quarterly production record of 607,000 tons in the third quarter. On a year-to-date basis, the mill has produced at an annual rate of 2.4 million tons, exceeding previously estimated capacity levels. The mill’s excellent performance this quarter resulted in a record consolidated operating profit of $95 per shipped ton. On a stand-alone basis, the mill’s operating profit per shipped ton approached $120 for the third quarter.

“We are extremely pleased with the operating results being realized at our Flat Roll Division,” said Keith Busse, president and chief executive officer. “These superior production levels are continuing to cause significant cost compression, allowing us to realize even greater profitability from our improved pricing. We achieved a record consolidated gross profit margin of 30 percent this quarter. The mill is fully booked for the fourth quarter at selling values similar to those experienced in the third quarter.

“The ramp-up of production at our new Columbia City, Indiana, structural steel mill is proceeding well,” Busse said. “Commissioning of the mill continues to make good progress. We are shipping product to customers during this phase and expect to complete commissioning of all structural products by the first quarter of 2003. During the first quarter the rail portion of the mill should be ready to begin its production trials.”

SDI previously announced its purchase of Qualitech Steel SBQ LLC’s special bar quality mini-mill assets located in Pittsboro, Indiana, for approximately $45 million. SDI plans to invest between $60 and $70 million of additional capital to convert the Qualitech facility to the production of merchant shapes and reinforcing bar products. The company does not currently plan to produce special bar quality (SBQ) products when the facility is restarted, but has not ruled out the possibility of producing SBQ products there in the future. SDI’s additional investment is expected to occur in the second half of 2003. Current plans are to complete the conversion during the fourth quarter of 2003. After conversion, the facility is expected to have a capacity of 500,000 to 600,000 tons per year.

Steel Dynamics manufactures a variety of hot- and cold-rolled steel products at its Butler, Indiana, flat-roll mini-mill and has recently begun initial beam production at its new Columbia City, Indiana, structural steel and rail facility.

Conference Call Webcast Available on SDI Web Site

A conference call in which Steel Dynamics’ management will discuss the company’s third quarter 2002 results and the business outlook is scheduled for 11:00 am EDT on October 15, 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 October 14 through midnight, October 19, 2002, at 719-457-0820 (confirmation code: 742248).

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, litigation, 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