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Oregon Steel Mills Updates
Second Quarter Outlook

May 28, 2004 — Oregon Steel Mills, Inc. is increasing its earnings expectations for the second quarter ending June 30, 2004.

The company believes that with the continued strength and recovery of profit margins in most of its product categories, its income from continuing operations in the second quarter of 2004 will be significantly higher than that recorded in the first quarter of 2004. The company now anticipates that second quarter earnings expectations will be within a range of $1.00 to $1.20 per share (exclusive of any further labor dispute settlement adjustments) based on 26.7 million diluted weighted average shares outstanding at March 31, 2004. Current analysts' estimates for 2004 will be exceeded, barring any unforeseen change in general business conditions. The 26.7 million diluted weighted average shares outstanding do not include the four million shares of company common stock that will be issued as part of the labor dispute settlement.

During the first quarter of 2004, the company recorded a pretax non-cash charge of $7 million ($.26 per share) related to the tentative agreement to issue four million shares of company common stock as part of the settlement of the labor dispute at the company's majority-owned subsidiary Rocky Mountain Steel Mills. The charge was a result of adjusting the previously recorded value of the shares at December 31, 2003 to market at March 31, 2004. The closing price of the company's common stock at March 31, 2004, resulted in the additional non-cash charge of $7 million. The company will continue to adjust the common stock portion of the Settlement at the end of each quarter according to changes in the price of the company's common stock.

Oregon Steel Mills, Inc. is organized into two divisions. The Oregon Steel Division produces steel plate, coil, welded pipe and structural tubing from plants located in Portland, Ore.; Napa, Calif.; and Camrose, Alta., Canada. The Rocky Mountain Steel Mills Division, located in Pueblo, Colo., produces steel rail, rod, bar, and tubular products.

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