KEYSTONE CONSOLIDATED INDUSTRIES, INC.                            [LOGO OMITTED]
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                                  PRESS RELEASE
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FOR IMMEDIATE RELEASE                                     CONTACT:

Keystone Consolidated Industries, Inc.                    Bert E. Downing, Jr.
5430 LBJ Freeway, Suite 1740                              Vice President - Chief
Dallas, Texas 75240-2697                                    Financial Officer
(972) 458-0028                                            (972) 458-0028

                         KEYSTONE REORGANIZATION UPDATE

     DALLAS,  TEXAS...April 11, 2005...Keystone  Consolidated  Industries,  Inc.
(KESNQ.PK,  "Keystone")  announced  on  March  29,  2005  that  it had  recently
executed,  and is seeking in the United States  Bankruptcy Court for the Eastern
District of Wisconsin (the  "Bankruptcy  Court"),  approval of an agreement (the
"Agreement")  with its largest  pre-petition  shareholder,  Contran  Corporation
("Contran"),  one of  Keystone's  Debtor-In-Possession  lenders and affiliate of
Contran,  EWP Financial  LLC, its largest  labor union,  the  Independent  Steel
Workers   Alliance,   its  Official   Committee  of  Unsecured   Creditors  (the
"Committee"),  certain individual members of the Committee,  and certain retiree
groups  (collectively,  the "Parties") to facilitate  Keystone's successful exit
from chapter 11 bankruptcy.

     The Agreement  reached by the Parties provides,  among other things,  for a
process to maximize  Keystone's  going-concern  value and that the Parties would
finalize a Contran-sponsored plan of reorganization (the "Consensual Plan") that
likely would go before the Bankruptcy  Court for  confirmation  in the summer of
2005.  Additionally,  on the same timeline as the Consensual Plan, the Agreement
allows  each of the  Parties  to  evaluate,  negotiate,  support  and  express a
preference  for a qualified  alternative  plan of  reorganization  (a "Qualified
Alternative Plan" or "QAP") proposed by another party.

     Under the terms of the  Agreement,  the  Consensual  Plan and the Qualified
Alternative Plan process both  contemplate  Keystone will exit bankruptcy in the
summer of 2005.  The  structured  nature of the  potential  dual plan process is
intended to achieve a controlled,  efficient and successful exit from bankruptcy
as well as to ensure  Keystone  exits from  bankruptcy as soon as possible while
maximizing the value available to its constituents and maintaining the stability
of the company in the future. In furtherance of these goals,  Keystone continues
to work  diligently to maintain  consistent  reliable  customer  service for its
superior  products  while  remaining  focused on efforts to exit the  bankruptcy
process in the summer of 2005.





     The Agreement  contemplates a single confirmation  process that would allow
multiple  plans,  including any  potential  QAP, to proceed on the same exit and
confirmation  timeline as the Consensual  Plan. The Parties have agreed to defer
disclosure  of the  applicable  terms of the various  plans to plan  sponsors as
required to maintain the  integrity and  value-maximizing  potential of the plan
consideration process set forth in the Agreement.

     Keystone's motion for approval of the Agreement  (including a more detailed
summary thereof) and other documents relevant to Keystone's  bankruptcy case are
available at http://www.kccllc.com

     As  provided  by the  safe  harbor  provisions  of the  Private  Securities
Litigation Reform Act of 1995, Keystone 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 Keystone's  other filings with the  Securities and Exchange
Commission including, but not limited to:

     o Future supply and demand for Keystone'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 Keystone's  operating
       costs,   including  achieving  relief  from  the  current  provisions  of
       agreements relative to healthcare with certain retiree groups,
     o The ability of Keystone 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  Keystone's  bankruptcy  case,  copies  of
Bankruptcy  Court filings and orders issued by the  Bankruptcy  Court related to
the case may be found at http://www.kccllc.com .

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