AK Steel Holding (AKS)

Pension Plans

The Company’s executive officers are eligible for retirement benefits under a qualified benefit plan known as the Non-Contributory Pension Plan (the “NCPP”). Retirement benefits are calculated under the NCPP using one of two formulas: (i) a cash balance formula (the “Cash Balance Formula”) or (ii) a final average pay formula (the “Final Average Pay Formula”). An employee’s eligibility for coverage under a particular formula is typically

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determined by the date when he or she commenced employment with the Company. Regardless of which formula is used under the NCPP, participants are generally vested after five years of service. Participants’ compensation taken into account in determining benefits under either formula is subject to the compensation limits imposed by the Code. The estimates contained herein of benefits provided under the Cash Balance Formula and Final Average Pay Formula are computed on a single life annuity basis and do not reflect any reduction resulting from a Social Security offset.

Cash Balance Formula

A Cash Balance Formula participant’s account is credited annually with (i) a service credit based on the participant’s years of service and eligible compensation for that year, and (ii) an interest credit based on the participant’s account balance as of the beginning of the year and an interest rate as determined and defined in the Cash Balance Formula. For purposes of the Cash Balance Formula, eligible compensation generally includes the participant’s base salary and incentive compensation.

Four of the Named Executives (Messrs. Wainscott, Horn, Kaloski and Ferrara) and two of the Company’s other executive officers participate in the Cash Balance Formula. The estimated annual benefits payable under the Cash Balance Formula upon retirement at age 65 for Mr. Wainscott is $22,196.04, for Mr. Horn is $9,862.08, for Mr. Kaloski is $6,768.60 and for Mr. Ferrara is $5,255.04. These estimates assume each Named Executive continues working for the Company until age 65, the Cash Balance Formula continues unchanged until the projection date, and regulatory limits on compensation and benefits remain constant at 2005 levels. These estimates make no assumptions of any future increases to the eligible compensation of the Named Executives.

Final Average Pay Formula

Under the Final Average Pay Formula, retirement benefits are calculated on the basis of the executive officer’s (i) number of years of credited service and (ii) average annual earnings during the 60 consecutive months out of the last 120 months of service that yield the highest annual compensation. One Named Executive (Mr. Gant) and one other executive officer participate in the Final Average Pay Formula. For information on Mr. Gant’s estimated annual benefit at retirement, see the footnote to the service credit table below.

Supplemental Plan

The Company’s supplemental retirement plan (the “Supplemental Plan”) provides (i) a “make up” of qualified plan benefits that were denied as a result of limitations imposed by the Code and (ii) supplemental benefits to vested participants. Vesting occurs when a participant completes a minimum of ten years of creditable service with the Company, including at least five years of service as an officer. Under the Supplemental Plan, the basic form of payment of a participant’s benefit is a single life annuity payment in equal monthly installments commencing on the later of the first day of the month following the participant’s 60^th birthday or his or her employment termination date. A participant may elect to commence the monthly payments early following his or her 55^th birthday, but the payments under those circumstances will be reduced to the actuarial equivalent of the regular payments based upon the participant’s age and certain actuarial assumptions. The Supplemental Plan was amended in 2004 provide that vesting also shall occur upon the effective date of a Change of Control (as defined in the Supplemental Plan) and to clarify that, in the event of a Change of Control, there would be no such actuarial reduction for commencement of a participant’s benefit before age 60 and participants would have the right to elect a lump sum form of payment rather than the annuity form of payment.

Benefits paid under the Supplemental Plan are subject to an offset for any benefit received under either the Company’s qualified plans or any qualified plan provided by another employer. A participant’s benefit under the Supplemental Plan, prior to giving effect to such offset, is equal to the greater of:

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Pension Plans

The Company’s executive officers are eligible for retirement benefits under either of two qualified benefit plans: (i) a cash balance plan (the “Cash Balance Plan”) or (ii) a defined benefit plan (the “Defined Benefit Plan”). An employee’s eligibility for coverage under a particular plan is typically determined by the date when he or she commenced employment with the Company. Under each qualified benefit plan, participants are generally vested after five years of service. Participants’ compensation taken into account in determining benefits under either plan is subject to the compensation limits imposed by the Code. The estimates contained herein of benefits provided under the Cash Balance Plan and Defined Benefit Plan are computed on a single life annuity basis and do not reflect any reduction resulting from a Social Security offset.

Cash Balance Plan

A Cash Balance Plan participant’s account is credited annually with (i) a service credit based on the participant’s years of service and eligible compensation for that year, and (ii) an interest credit based on the participant’s account balance as of the beginning of the year and an interest rate as determined and defined in the Cash Balance Plan. For purposes of the Cash Balance Plan, eligible compensation generally includes the participant’s base salary and incentive compensation.

Four of the Named Executives (Messrs. Wainscott, Horn, Kaloski and Ferrara) and two of the Company’s other executive officers participate in the Cash Balance Plan. The estimated annual benefits payable under the Cash Balance Plan upon retirement at age 65 for Mr. Wainscott is $20,144, for Mr. Horn is $9,225, for Mr. Kaloski is $6,188 and for Mr. Ferrara is $4,959. These estimates assume each Named Executive continues working for the Company until age 65, the Cash Balance Plan continues unchanged until the projection date, and regulatory limits on compensation and benefits remain constant at 2004 levels. These estimates make no assumptions of any future increases to the eligible compensation of the Named Executives.

Defined Benefit Plan

Under the Defined Benefit Plan, retirement benefits are calculated on the basis of the executive officer’s (i) number of years of credited service and (ii) average annual earnings during the 60 consecutive months out of the last 120 months of service that yield the highest annual compensation. One Named Executive (Mr. Gant) and one other executive officer participate in the Defined Benefit Plan. For information on Mr. Gant’s estimated annual benefit at retirement, see the footnote to the service credit table below.

Supplemental Plan

The Company’s supplemental retirement plan (the “Supplemental Plan”) provides (i) a “make up” of qualified plan benefits that were denied as a result of limitations imposed by the Code and (ii) supplemental benefits to participants with a minimum of ten years of creditable service with the Company, including at least

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five years of service as an executive officer. Under the Supplemental Plan, the basic form of payment of a participant’s benefit is a single life annuity payment in equal monthly installments commencing on the later of the first day of the month following the participant’s 60th birthday or his or her employment termination date. A participant may elect to commence the monthly payments early following his or her 55th birthday, but the payments under those circumstances will be reduced to the actuarial equivalent of the regular payments based upon the participant’s age and certain actuarial assumptions. The Supplemental Plan was amended in 2004 to clarify that in the event of a change in control (as defined in the Supplemental Plan) there would be no such actuarial reduction for commencement of a participant’s benefit before age 60 and participants would have the right to a lump sum form of payment or the annuity form of payment.

Benefits paid under the Supplemental Plan are subject to an offset for any benefit received under either the Company’s qualified plans or any qualified plan provided by another employer. A participant’s benefit under the Supplemental Plan, prior to giving effect to such offset, is equal to the greater of: