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                         INLAND STEEL INDUSTRIES INC.
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                    [LETTERHEAD OF INLAND STEEL INDUSTRIES]
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                                                    May 16, 1997

Via Facsimile and 
 Overnight Courier

Dear Institutional Investor:


     You may have recently received a letter from Greenway Partners arguing that
Inland should issue "letter stock" linked to the earnings of Ryerson Tull, Inc.
instead of spinning off Ryerson Tull as Greenway proposed in Inland's proxy
statement for the 1997 Annual Meeting of Stockholders.

     Reflecting the importance placed on shareholders' views, Inland and its
investment bankers studied Greenway's letter stock idea and decided not to
pursue it because, among other factors, having Ryerson Tull's earnings tracked
by a letter stock issued by Inland at the same time as Ryerson Tull's own common
stock is publicly traded would cause substantial confusion in the market. You
should know that, prior to embarking upon its present strategic course, Inland
and its investment bankers evaluated the possibility of a letter stock offering
and concluded it would not be in the best interest of shareholders.

     The Company does not believe that either Greenway's spin-off proposal or
its letter stock proposal are the right steps at this time. Notably,
Institutional Shareholder Services has just issued a report sharing this view
and recommending a VOTE AGAINST ITEM 3 on Inland's proxy.

     A copy of my letter to Greenway, a recent press release and a letter to
Inland shareholders are enclosed for your consideration. Please feel free to
contact me at (312) 899-3923, or Bob Weidner at (312) 899-3607, if you have any
questions.


                                Yours very truly,


                                Jay M. Gratz

cc:  Robert J. Darnall