AK Steel Holding (AKS)

Off Balance Sheet Arrangements

There were no off balance sheet arrangements as of December 31, 2007.

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Off Balance Sheet Arrangements

There were no off balance sheet arrangements as of December 31, 2006.

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Off Balance Sheet Arrangements

The Company holds an equity interest in Combined Metals of Chicago L.L.C., which is not consolidated in the Company’s financial statements. The Company had provided a $3.3 letter of credit to support a portion of Combined Metals’ bank indebtedness proportionate to the Company’s equity investment. The fair value of this guarantee, which is not material, is recorded in accrued liabilities as of December 31, 2005. As of February 1, 2006, the Company is no longer required to provide this letter of credit.

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The Company holds an equity interest in AK-ISG Steel Coating Company (“AK-ISG”), a joint venture that operates an electrogalvanizing line in Cleveland, OH, and guarantees its performance under an equipment lease that terminates in 2009. In the fourth quarter of 2005, AK-ISG made the decision to indefinitely idle its electrogalvanizing line effective March 31, 2006. As a result, the Company fully impaired its investment in AK-ISG, resulting in a charge of $33.9 in 2005. The recognition of the above guarantee is included in the impairment charge and is reserved in accrued liabilities.

Off Balance Sheet Arrangements

The Company holds an equity interest in Combined Metals of Chicago L.L.C., which is not consolidated in the Company’s financial statements. The Company has provided a $4.0 letter of credit to support a portion of Combined Metals’ bank indebtedness proportionate to the Company’s equity investment. The fair value of this guarantee, which is not material, is recorded in accrued liabilities.

The Company holds an equity interest in AK-ISG Steel Coating Company and guarantees its performance under an equipment lease that terminates in 2009. At December 31, 2004 and December 31, 2003, the Company’s maximum liability under this guarantee was approximately $16.2 and $20.2 respectively, which was not recorded on its financial statements because it originated before the effective date of Financial Accounting Standard Board (“FASB”) Interpretation No. 45. Payment of any amounts under this guarantee, if necessary, would be made in monthly installments through early 2009.

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