FOR IMMEDIATE RELEASE - SEPTEMBER 4, 2003

Contacts: Mr. William J. Jessie
          President and Chief Operating Officer
          (606) 929-1256

     ASHLAND, KENTUCKY - Ashland Steel Liquidating Company, formerly known as
Kentucky Electric Steel, Inc. (the "Company"), today announced it had completed
the sale of substantially all of its assets to KES Acquisition Company, LLC
("KES Acquisition") for $2,650,000. The Bankruptcy Court entered an order
approving the sale on August 20, 2003. The Company closed on the sale on
September 2, 2003.

          The Company does not anticipate that any proceeds from the sale of its
assets to KES Acquisition will be distributed to its general unsecured creditors
or its stockholders. On August 12, 2003, the Company filed its proposed
disclosure statement and liquidating plan of reorganization. The Bankruptcy
Court will conduct a hearing on the Company's proposed disclosure statement on
September 26, 2003.

          As previously reported, the Company shut down its production
facilities and filed for bankruptcy protection under Chapter 11 of the U.S.
Bankruptcy Code in the United States Bankruptcy Court for the Eastern District
of Kentucky on February 5, 2003, with the stated intention to facilitate the
orderly sale of its assets.

          This document includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may differ materially
from these expectations due to economic uncertainty, the effects of vigorous
competition, the impact of technological change on the steel business, and
regulatory risks.