AK Steel Holding (AKS)

Labor

On July 9, 2007, the Company announced a new labor agreement with the United Auto Workers (UAW), Local 3044 that became effective August 1, 2007. Local 3044 represents about 190 hourly production employees at the Company’s Rockport Works. The new six-year labor agreement provides work force flexibility, no minimum base workforce guarantee, continued cost sharing for employee healthcare, competitive wage increases and lump-sum payments, a ratification bonus and improved contributions to a defined contribution retirement plan.

Labor

On July 9, 2007, the Company announced a new labor agreement with the United Auto Workers (UAW), Local 3044 that became effective August 1, 2007. Local 3044 represents about 190 hourly production employees at the Company’s Rockport Works. The new six-year labor agreement provides work force flexibility, no minimum base workforce guarantee, continued cost sharing for employee healthcare, competitive wage increases and lump-sum payments, a ratification bonus and improved contributions to a defined contribution retirement plan.

Labor

On May 9, 2006, the Company announced a new labor agreement with the United Auto Workers (UAW), Local 4104 which became effective May 20, 2006. Local 4104 represents about 200 hourly production and maintenance employees at the Company’s Zanesville Works. The new six-year labor agreement provides work force flexibility, no minimum base workforce guarantee, current and future retiree healthcare cost sharing, competitive wage increases and a lock and freeze of the traditional defined benefit pension plans, which have been converted to a per-hour contribution to a defined contribution plan.

On July 21, 2006, the Company announced a new labor agreement with the United Autoworkers (UAW), Local 3303, to be effective October 1, 2006. Local 3303 represents about 1,400 hourly production and maintenance employees at the Butler Works. The Company and the UAW jointly agreed to commence early negotiations on June 20, 2006, to reach a new labor contract to replace the existing agreement, which was scheduled to expire September 30, 2006. The new six-year labor agreement provides work force flexibility, no minimum base workforce guarantee, current and future retiree healthcare cost sharing, competitive wage increases and a “lock and freeze” of the traditional defined benefit pension plan, which will be replaced by a per-hour contribution to a defined contribution plan.

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As a result of the ratification of the new labor contracts at Zanesville Works and Butler Works, the Company incurred one-time charges in the third quarter of 2006 of $15.8. The principal component of these charges was a non-cash curtailment charge of $10.8 resulting from the “lock and freeze” of the traditional defined benefit plan at Butler Works and Zanesville Works.

Labor

On May 9, 2006, the Company announced a new labor agreement with the United Auto Workers (UAW), Local 4104 which became effective May 20, 2006. Local 4104 represents about 200 hourly production and maintenance employees at the Company’s Zanesville (OH) Works. The new six-year labor agreement provides work force flexibility, no minimum base workforce guarantee, current and future retiree healthcare cost sharing, competitive wage increases and a lock and freeze of the traditional defined benefit pension plans, which have been converted to a per-hour contribution to a defined contribution plan.

On July 21, 2006, the Company announced a new labor agreement with the United Autoworkers (UAW), Local 3303, to be effective October 1, 2006. Local 3303 represents about 1,400 hourly production and maintenance employees at the Butler (PA) Works. The Company and the UAW jointly agreed to commence early negotiations on June 20, 2006, to reach a new labor contract to replace the existing agreement, which was scheduled to expire September 30, 2006. The new six-year labor agreement provides work force flexibility, no minimum base workforce guarantee, current and future retiree healthcare cost sharing, competitive wage increases and a “lock and freeze” of the traditional defined benefit pension plan, which will be replaced by a per-hour contribution to a defined contribution plan.

As a result of the ratification of the new labor contracts at Zanesville Works and Butler Works, the Company expects to incur one-time charges in the third quarter of 2006 of approximately $16.0, primarily associated with a non-cash curtailment charge for the Butler Works agreement.