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Rouge Steel Company Inks Letter of Intent

5 November 1998

Rouge Steel Company Inks Letter of Intent To Bring Cleaner and Cheaper Power to the Rouge Site

    DEARBORN, Mich., Nov. 5 -- Rouge Industries, Inc.
announced today that Rouge Steel Company, its primary operating subsidiary,
and Ford Motor Company have signed a letter of intent with CMS
Energy Corporation for the construction and operation of an
environmentally-friendly co-generation power plant at the historic Rouge
complex.  Formal agreements are expected to be finalized before the end of the
year.
    The new 550-megawatt power plant will be fueled by natural gas and blast
furnace gas, a by-product of Rouge Steel's iron making process.  It will
replace the aged and partially coal-fueled Powerhouse that has been in service
at the Rouge site since the 1920's.
    The power plant is expected to have a construction cost of approximately
$240 million, providing up to 300 construction jobs and 30 permanent operating
jobs upon completion.  The project is contingent upon state and local
approvals, incentives, and completion of the agreements between Rouge Steel,
Ford and CMS Energy.  Construction of the facility is expected to begin in the
first quarter of 1999 with the first turbine in operation by mid-year 2000.
The new facility will be located adjacent to the Rouge complex in southeastern
Dearborn, Michigan.
    According to Carl L. Valdiserri, chairman and chief executive officer of
Rouge Industries, "There is no single project that is more important to the
future viability of Rouge Steel Company than this co-generation facility.  It
will provide our Company and the Rouge site with a reliable source of
electricity and steam at competitive prices.  The new facility will also
purchase and consume our blast furnace gas, a valuable by-product of our iron
making process.  It is expected to reduce our operating costs by up to $30
million per year."
    CMS Enterprises and DTE Energy Services, the independent business arms of
CMS Energy Corporation and DTE Energy Company , respectively, are
forming a partnership to own and operate the new power plant.
    Rouge Industries is a producer of premium-quality flat rolled sheet steel
and processed steel products.  It is the parent holding company of Rouge Steel
Company.  Rouge Industries principally serves the automotive, converter and
service center markets.

    Safe Harbor Statement
    This press release contains forward-looking information about the Company.
A number of factors could cause the Company's actual results to differ
materially from those anticipated, including changes in the general economic
climate, the supply of or demand for and the pricing of steel products in the
Company's markets, potential environmental liabilities and higher than
expected costs.  For further information on these and other factors that could
impact the Company and the statements contained herein, reference should be
made to the Company's filings with the Securities and Exchange Commission.