AK Steel Holding (AKS)

Six-Month Results

For the first six months of 2007, the company reported net income of $172.6 million, or $1.55 per diluted share. Net income for the corresponding 2006 period was $35.3 million, or $0.32 per diluted share, which included non-cash charges of $2.7 million, or $0.02 per diluted share, reflecting the reduction in value of the company’s deferred tax assets as a result of state tax law changes.

First-half 2007 sales were a record $3,589.4 million, compared to $2,933.2 million in the first half of 2006. Operating profit in the first six months of 2007 was $307.4 million, or $93 per ton, compared to $92.4 million, or $30 per ton, for the first half of 2006. Operating profit for the first half of 2007 was impacted by pre-tax, non-cash pension curtailment charges totaling $39.8 million related to new labor agreements for the company’s Mansfield and Middletown plants, along with higher raw material costs and associated higher LIFO charges. Excluding the pension curtailment charges, operating profit in the 2007 first half was a record $347.2 million, or $105 per ton, also a record performance.

During the first half of 2007, the company redeemed $300 million of senior notes, made $180 million in early pension fund contributions and ended the second quarter with $455.9 million of cash on hand, and $682.3 million of availability under its credit facility.

The following schedule reflects the reconciliation of the Non-GAAP financial measures discussed within this news release: