KEYSTONE CONSOLIDATED INDUSTRIES, INC.                          [LOGO GOES HERE]

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                                  PRESS RELEASE
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FOR IMMEDIATE RELEASE                                     CONTACT:

Keystone Consolidated Industries, Inc.                    J. Mark Hollingsworth
5430 LBJ Freeway, Suite 1740                              Acting General Counsel
Dallas, Texas  75240-2697                                 (972) 458-0028
(972) 458-0028

                 KEYSTONE ANNOUNCES INTENT TO SEEK CONSENT FROM
                           SENIOR SECURED NOTEHOLDERS


DALLAS, TEXAS -- July 25, 2001 -- Keystone Consolidated Industries,  Inc. (NYSE:
KES), an integrated  wire and wire products  producer,  announced  today that it
will request a consent from holders of its 9 5/8% Senior  Secured Notes due 2007
to defer the exercise of such holders'  right to  accelerate  the payment of the
notes pursuant the acceleration provisions of the governing indenture.

Despite  efforts  to  improve  operating  results  through  improved   operating
efficiencies,  medical  cost sharing  arrangements  and other  initiatives,  the
prolonged   downturn  in  the  steel  industry  continues  to  adversely  affect
Keystone's  liquidity  and capital  resources.  Consequently,  Keystone does not
expect to pay the interest on the notes due on August 1, 2001.

Under the governing indenture,  a failure to make the scheduled interest payment
for thirty days will give rise to a right to  accelerate  the unpaid  portion of
the notes.  Keystone plans to seek an agreement to defer the acceleration of the
notes to permit  Keystone  to explore  possible  restructuring  alternatives  to
improve its overall financial condition. Keystone has received an agreement from
its  working  capital  lender to forbear  remedies  available  to it solely as a
result of Keystone's failure to make the required interest payment on the notes.

Keystone  Consolidated  Industries,  Inc.  is  headquartered  in Dallas,  Texas.
Keystone is a leading manufacturer and distributor of fencing and wire products,
carbon  steel rod,  industrial  wire,  nails and  construction  products for the
agricultural,  industrial,  construction,  original  equipment  markets  and the
retail  consumer.  Keystone is traded on the New York Stock  Exchange  under the
symbol of KES.

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