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USW Supports Severstal’s Purchase of Esmark

Will Continue to Oppose Essar Bid

For Immediate Release:                                            May 21, 2008

PITTSBURGH – The United Steelworkers (USW) today confirmed that the union strongly supports OAO Severstal’s proposal to acquire all outstanding shares of Esmark Incorporated common stock and reiterated its opposition to Essar Steel Holdings Limited’s effort to purchase the company.

Further, the union confirmed that it will exercise its full rights under its contract to prevent the transaction between Esmark and Essar.

The USW will hold Esmark accountable for breaching the legal protections granted by its contractual Right to Bid Clause by entering into the memorandum and closing on related financing without first providing the Steelworkers with appropriate notice and an opportunity to bring forward an alternative proposal.

“Although the USW did have some discussions with Essar, they came very late in the process and those discussions did not result in an understanding regarding a Successor Labor Agreement. Despite knowing this, Esmark signed an agreement with Essar without providing the USW with the opportunity to put forward an alternative proposal under explicit provisions of the Right to Bid clause,” said USW District 1 Director David McCall.

“Our objections to the Essar deal are based on both our obligation to vigorously defend our contractual rights as well as the fact that Severstal has agreed to a contract that meets the needs of our members and our retirees.”

Under the Successorship Clause of the contract, Esmark and Essar cannot close the proposed transaction until Essar has entered into a collective bargaining agreement with the USW.  The union has made clear that it will not enter into such an agreement.

Contact: Dave McCall - 614-888-6052

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