ISG ING Groep NV

International Steel Group and Warren City Schools Board of Education Reach Property Tax Exemption Agreement Plan aimed at making improvements to Warren City Schools and protecting jobs and ISG's Warren coke plant's future WARREN, Ohio, Dec. 7 /PRNewswire-FirstCall/ -- The Warren City Schools Board of Education and International Steel Group Inc. (NYSE:ISG) have announced an agreement regarding partial exemption of property taxes over the next 15 years arising from future investments at its coke production facility in Warren Township. The plan aims to help the local school district with needed improvements while also improving the competitiveness of the Warren coke plant, thereby helping to secure the future stability of the plant and its approximately 140 jobs. In connection with this agreement, ISG will begin a major capital improvement project that will upgrade and modernize its coke-making facility. The project, which is expected to cost more than $13 million over the next 10 years will enhance the competitiveness of the facility. Under the plan, ISG would receive a 100-percent exemption of new real and personal property taxes arising from the capital improvements made to the coke plant. In return, ISG would make payments in lieu of tax to the school district equal to 25 percent of the tax that would have been due if there was no exemption. Additionally, ISG has agreed to make contributions totaling $117,000 for school district capital improvements and college scholarships. The use of the payment-in-lieu-of-tax (PILOT) actually increases the overall benefit to the school district by preserving funding from the State of Ohio that ordinarily would have been lost as the new assets were installed and became taxable. Warren City Schools Board of Education President, Linda Metzendorf, said, "This is a real win-win situation for the school district and ISG. Our community benefits financially, we help preserve good jobs and future tax revenue, and the company gets to make needed improvements to make it more competitive." Jeff Foster, general manager, ISG Warren, remarked, "This is a very positive agreement for both the community and ISG. We are pleased the school board and local officials have expressed their support for the project and we have worked closely with them to structure a package of mutually beneficial economic incentives. I am grateful for their support, which is an important factor in moving this project to reality." "We are very pleased the Board of Education and the company are working so well together to preserve jobs and improve the community," said Bill Prejsnar of United Steelworkers of America (USW) Local 1375. "The steel business today is very competitive and we must make continuous improvements to succeed over the long term. This agreement is a good deal for everyone in Warren." With this agreement having been reached, the Enterprise Zone tax exemption arrangement will need to be approved by the Warren Township Trustees, the Trumbull County Commissioners, and the State of Ohio. About International Steel Group Inc. International Steel Group Inc. is one of the largest steel producers in North America. It produces a variety of steel products including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, rail products and semi-finished shapes to serve the automotive, construction, pipe and tube, appliance, container and machinery markets. For additional information on ISG, visit http://www.intlsteel.com/ . Forward-Looking Statements Statements in this release that are not historical facts, including statements accompanied by words such as "will," "believe," "expect," "estimate," or similar terms, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements involve risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied in such statements. These statements contain time-sensitive information that reflects management's best analysis only as of the date of this release. ISG does not undertake any ongoing obligation, other than that imposed by law, to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Factors that may cause actual results and performance to differ materially from those in the forward-looking statements include, but are not limited to, negative overall economic conditions or conditions in the markets served; competition within the steel industry; changes in U.S. or foreign trade policy affecting steel imports or exports; changes in foreign currencies affecting the strength of the U.S. dollar; actions by domestic and foreign competitors; the inability to achieve the Company's anticipated growth objectives; changes in availability or cost of raw materials, energy or other supplies; labor issues affecting the Company's workforce or the steel industry generally; and the inability to implement the Company's operating culture and philosophy at acquired facilities. Further information concerning issues that could materially affect financial performance related to forward-looking statements can be found in ISG's Prospectus filed on December 12, 2003, and in the Company's subsequent periodic filings with the Securities and Exchange Commission. DATASOURCE: International Steel Group CONTACT: Charles T. Glazer, Manager, Communications and Public Relations of International Steel Group Inc., +1-330-659-9121 Web site: http://www.intlsteel.com/

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