KEYSTONE CONSOLIDATED INDUSTRIES, INC.                            [LOGO OMITTED]

================================================================================
                                  PRESS RELEASE
================================================================================

FOR IMMEDIATE RELEASE                                         CONTACT:

Keystone Consolidated Industries, Inc.                        Vic Stirnaman
5430 LBJ Freeway, Suite 1740                                  Director -
Dallas, Texas 75240-2697                                      Human Resources
(972) 458-0028                                                (309) 697-7512


       KEYSTONE AND INDEPENDENT STEEL WORKERS ALLIANCE ANNOUNCE TENTATIVE
                AGREEMENT WITH INDEPENDENT STEEL WORKERS ALLIANCE

     PEORIA,  ILLINOIS  .  . .  July  16,  2004  .  .  .  Keystone  Consolidated
Industries,  Inc.  (OTCBB:  KESNQ) and the  Independent  Steel Workers  Alliance
jointly  announce that today they reached a tentative  agreement with respect to
the  collective   bargaining   agreement  for  active  union  employees  at  the
Bartonville Plant. The revisions to the collective  bargaining agreement must be
approved by the ISWA membership and by the Bankruptcy  Court in Milwaukee before
they become effective.

     Randy Beck,  President of the ISWA, said, "We hope our membership will send
a clear  message to the  Company's  customers  that the ISWA intends to keep the
Bartonville  Plant open and products  delivered on time.  Union  employees  have
worked hard to keep the plant operating efficiently.  We will ask our membership
to ratify the modified agreement."

     Vic  Stirnaman,  Director - Human  Resources  of  Keystone,  said:  "We are
pleased to have reached an agreement  with the ISWA  leadership.  The  tentative
agreement is the first major step in formulating a reorganization  plan that the
company  intends to file with the court soon.  If ultimately  confirmed,  such a
plan will enable a restructuring and emergence from bankruptcy by year's end."

     The new tentative  agreement provides for concessions as well as new rights
for union  employees.  Details  regarding  the new tentative  agreement  will be
provided in a motion that the  Company and the ISWA will  jointly  file with the
court.

     As  provided  by the  safe  harbor  provisions  of the  Private  Securities
Litigation  Reform Act of 1995,  the Company  cautions  that  statements in this
Release  relating to matters that are not historical  facts are  forward-looking
statements  that  represent   management's  beliefs  and  assumptions  based  on
currently available information. Forward-looking statements can be identified by
the use of  words  such as  "believes,"  "intends,"  "may,"  "should,"  "could,"
"anticipates,"  "expected,"  or comparable  terminology,  or by  discussions  of
strategies or trends.  Although Keystone believes the expectations  reflected in
such  forward-looking  statements are reasonable,  it cannot give any assurances
that these  expectations  will prove to be  correct.  Such  statements  by their
nature involve  substantial  risks and  uncertainties  that could  significantly
impact expected results,  and actual future results could differ materially from
those described in such forward-looking statements.  While it is not possible to
identify all factors,  Keystone  continues to face many risks and uncertainties.
Among the factors that could cause actual  future  results to differ  materially
are the risks and  uncertainties  discussed in this Release and those  described
from  time to time in the  Company's  other  filings  with  the  Securities  and
Exchange Commission including, but not limited to:

o    Future supply and demand for the Company's products (including  cyclicality
     thereof),
o    Customer inventory levels,
o    Changes in raw material and other  operating  costs (such as ferrous  scrap
     and energy)
o    General economic conditions,
o    Competitive products and substitute products,
o    Changes in customer and competitor strategies,
o    The impact of pricing and production decisions,
o    The possibility of labor disruptions,
o    Environmental  matters  (such as those  requiring  emission  and  discharge
     standards for existing and new facilities),
o    Government regulations and possible changes therein,
o    Significant  increases  in  the  cost  of  providing  medical  coverage  to
     employees and retirees,
o    The ability to successfully  obtain  reductions in the Company's  operating
     costs,  including  achieving  relief  from the  current  provisions  of the
     Company's collective  bargaining agreement with its labor union and certain
     retirees,
o    The ability of the Company to successfully renegotiate the terms of certain
     of its indebtedness,
o    The ultimate resolution of pending litigation,
o    International  trade  policies  of the United  States and  certain  foreign
     countries,
o    Any possible future litigation, and
o    Other risks and uncertainties as discussed in this Release.

     Should one or more of these risks  materialize (or the consequences of such
a development  worsen),  or should the underlying  assumptions  prove incorrect,
actual  results  could  differ  materially  from those  forecasted  or expected.
Keystone  disclaims  any  intention  or  obligation  to  update  or  revise  any
forward-looking statement whether as a result of new information,  future events
or otherwise.

     Keystone Consolidated  Industries,  Inc. is headquartered in Dallas, Texas.
The  company is a leading  manufacturer  and  distributor  of  fencing  and wire
products,  wire rod,  industrial wire,  nails and construction  products for the
agricultural,  industrial,  construction,  original  equipment  markets  and the
retail  consumer.  Keystone's  common stock is traded on the OTC Bulletin  Board
(Symbol: KESNQ).

                               * * * * * * * * * *