Exhibit 99.1

                                                    Contact: Anita-Marie Hill
                                                             Sitrick And Company
                                                             (310) 788-2850

               National Steel Corp. Announces Asset Sale Agreement
                                 with U.S. Steel

                       Transaction Valued at $950 Million

     Mishawaka, Ind. - January 9, 2003 - National Steel Corporation today
announced it has signed an Asset Purchase Agreement ("APA") with United States
Steel Corporation ("U. S. Steel") for the sale of substantially all of National
Steel's principal steel making and finishing assets. The transaction, which is
targeted for completion early in the second quarter of 2003, is valued at
approximately $950 million, primarily consisting of cash but including up to
$100 million of U. S. Steel common stock and the assumption of certain
liabilities approximating $200 million.

     The transaction is subject to a number of conditions, including termination
or expiration of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act and the execution and ratification of a new collective
bargaining agreement by the United Steelworkers of America satisfactory to U. S.
Steel for the National Steel employees who will become employees of U. S. Steel.

     National Steel Chairman and Chief Executive Officer Mineo Shimura said that
management and the board of directors determined that the proposed sale is
consistent

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with the goals of generating value for its stakeholders and preserving the
Company's operations on a going-concern basis, and with the Bush
administration's call for consolidation in the domestic steel industry.

     "The transaction we are announcing today represents positive news for our
stakeholders," he said. "Under new ownership, the steel businesses that are
associated with the assets U.S. Steel is purchasing will continue to operate and
to capitalize on the significant improvements we have made during recent years."

     He noted that during the sale process, operations are not expected to
change, and National Steel will continue to fulfill its obligations to its
customers, suppliers and others without interruption. "Going forward, our
customer relationships and the quality of our products and service will remain
key priorities," Mr. Shimura stated.

     Under the terms of the APA, which is subject to the approval of the
Bankruptcy Court overseeing National Steel's pending Chapter 11 cases in the
Northern District of Illinois, U. S. Steel would acquire facilities at National
Steel's two integrated steel plants, Great Lakes, in Ecorse and River Rouge,
Michigan, and the Granite City Division in Granite City, Illinois, the Midwest
finishing facility in Portage, Indiana, the administrative office in Mishawaka,
Indiana, various subsidiaries and National's share of the Double G joint venture
in Jackson, Mississippi, as well as net working capital related to the acquired
assets. The sale does not include National Steel Pellet Company, National
Steel's iron ore pellet operation in Keewatin, Minnesota.

     The APA is subject to higher and better offers submitted in accordance with
procedures to be approved by the Bankruptcy Court under Sections 363 and 365 of
the

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U.S. Bankruptcy Code. A motion to approve the procedures will be filed with the
Court today. It is anticipated that the Judge will rule on this motion later
this month.

     As a result of various contingencies that must be satisfied in connection
with the transaction with U. S. Steel, National Steel will continue to develop
plans to emerge from Chapter 11 bankruptcy as a stand-alone entity. While the
agreement with U.S. Steel offers a good solution for National Steel, the Company
emphasized that it is not the only or final option. "We believe that the sale to
U.S. Steel will be successful, but we will continue to make plans toward
emerging from Chapter 11 on a stand-alone basis in the event that it is not,"
said Mr. Shimura. "Our employees are dedicated to the successful emergence from
Chapter 11 and to the continued support of our customers, vendors, and
stakeholders," he continued.

     The Company filed its voluntary petition in the U.S. Bankruptcy Court for
the Northern District of Illinois in Chicago on March 6, 2002.

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About National Steel:

     Headquartered in Mishawaka, Indiana, National Steel Corporation is one of
the nation's largest producers of carbon flat-rolled steel products, with annual
shipments of approximately six million tons. National Steel employs
approximately 8,200 employees. For more information about the company, its
products and its facilities, please visit the National Steel's web site at
www.nationalsteel.com.

     All statements contained in this release, other than historical
information, are forward-looking statements. Completion of the potential
transaction described in this release is subject to various conditions, risks
and uncertainties, and there can be no assurance that the transaction will be
consummated. A variety of factors could cause business conditions and the
Company's actual results to differ materially from those expected by the Company
or expressed in the Company's forward-looking statements. Additional information
concerning these factors is available in the Company's most recent Form 10-K for
the year ended December 31, 2001.

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