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.                          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 COURT
           APPROVAL OF AMENDMENTS TO COLLECTIVE BARGAINING AGREEMENT

     PEORIA,  ILLINOIS  . . .  August  16,  2004  .  . .  Keystone  Consolidated
Industries,  Inc.  (KESNQ.PK) and the Independent Steel Workers Alliance jointly
announced  today  that  the  revisions  to the  existing  collective  bargaining
agreement at Keystone's  Bartonville  Plant  previously  ratified by the ISWA on
August 4th were  approved by the  Bankruptcy  Court in  Milwaukee  on  Thursday,
August 12.

     The revised agreement provides for certain concessions related primarily to
healthcare  coverage  as well as new  rights  for ISWA  members.  Details of the
contract  revisions  are included in a motion that was jointly filed by Keystone
and the ISWA in  Bankruptcy  Court.  The Court  approval  allows the  Company to
implement the contract revisions.

     Keystone  believes  the Court  approval of the revised  contract is a major
step forward in the Company's efforts to complete a successful restructuring and
in achieving its goal of exiting the bankruptcy process by the end of the year.

     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 agreements  relative to healthcare  with certain retiree
          groups,
     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    A successful reorganization and exit from the bankruptcy process,
     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 under the Symbol:  KESNQ.PK.
Up to date  information  concerning  the bankruptcy  case,  copies of Bankruptcy
Court  filings  and  orders  issued  by the  Bankruptcy  Court  may be  found at
http://www.kccllc.com .

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