Fontana, CA.-- Today California Steel Industries, Inc. (“CSI”) reported record production and sales volumes during the second quarter ended June 30, 2002. Sales volume for the quarter was an all-time high of 537,338 net tons. Additionally, for the first time in the company’s history, CSI sold and produced more than 1 million tons in one semester. Production was 1,001,445 tons, while shipments reached 1,011,999 tons.

Net income for the second quarter was $11.4 million and EBITDA for the same period totaled $30.0 million. For the first semester, net income was $13.2 million, while EBITDA was $43.7 million.

During the quarter CSI’s strong cash generation, combined with a continued focus on maximizing liquidity, permitted CSI to reduce advances from its Revolving Credit Agreement to zero. As a consequence, outstanding debt at June 30, 2002 was $150 million (equivalent to the amount of the Senior Notes due 2009), cash on hand was $22.7 million and availability under the Revolver exceeded $93 million (the maximum level possible).

Lourenço Gonçalves, President and CEO, commented, “The performance we are currently reporting was only possible because every single element of our company and of our business model is working well. Through our employees’ extraordinary efforts, CSI achieved new quarterly production and shipment records. In fact, for the last twelve months, CSI has been operating at production and sales rates both in excess of two million tons per year. The timing could not be better as our customers are feeling the effects of Section 201, not all good for the West Coast market. We have been trying our best to fill the void left by the almost complete absence of imported steel in our regional marketplace. Additionally, as we had previously anticipated, opportunistic mid-western mills have once again abandoned the West Coast customers to take advantage of an improved supply-driven situation in their home markets. For the balance of the year, CSI will keep doing whatever it takes to support our good customers.”

With the combination of record production levels and decreases in inventories, CSI’s second quarter 2002 sales volume of 537,338 tons represents a 62,478-ton increase from the second quarter 2001, and a 62,677 ton increase from the first quarter 2002. CSI’s average sales price increased $20 per ton when compared to the first quarter of 2002 and was flat compared to second quarter 2001. Sales volumes for the quarter were as follows (net tons):

Average slab consumption costs (including the FOB slab price, ocean freight, unloading charges, duties, and rail freight from the port of Los Angeles to CSI’s Fontana works) for the quarter decreased by more than $6 per ton when compared to first quarter 2002. The number is also approximately $30 per ton lower than slab costs in second quarter 2001.

Unaudited figures (in thousands) are as follows:

As a final note, CSI is pleased to inform that, during the second quarter, a total of $11.4 million was paid as due dividends to its shareholders. At this point in time, no more such payments are due.

This release may contain forward-looking statements relating to future financial results. Actual results may differ materially as a result of factors over which the Company has no control. These risk factors and additional information are included in the Company’s reports filed with the Securities and Exchange Commission..