UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

In re: Rouge Industries, Inc., et al    
Debtors Case No.: 03-13272
Reporting Period: June, 2004

MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month

Submit copy of report to any official committee appointed in the case.

		Document		Explanation
REQUIRED DOCUMENTS	Form No.	Attached		Attached
Schedule of Cash Receipts and Disbursements	MOR-1		X		X
Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR-1 (CONT.)		X
Copies of bank statements			X		X
Cash disbursements journals
Statement of Operations	MOR-2				X
Balance Sheet	MOR-3		X
Status of Postpetition Taxes	MOR-4				X
Copies of IRS Form 6123 or payment receipt
Copies of tax returns filed during reporting period
Summary of Unpaid Postpetition Debts	MOR-4		X
Listing of aged accounts payable	MOR-5		X
Debtor Questionnaire	MOR-5		X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

/s/ Steven L. Victor	8/10/04
Signature of Debtor	Date
Signature of Joint Debtor	Date
Signature of Authorized Individual*	Date
Printed Name of Authorized Individual	Title of Authorized Individual

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

FORM MOR
(9/99)

In re: Rouge Industries, Inc., et al Case No.: 03-13272
Reporting Period: June, 2004

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Amounts reported should be per the debtor’s books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the “CURRENT MONTH - ACTUAL” column must equal the sum of the four bank account columns. The amounts reported in the “PROJECTED” columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1) . Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CONT.)]

	LaSalle Bank
	INVESTMENT ACCOUNT					INVESTMENT ACCOUNT
	Professional Fee Carve Out		ESTATE CHECKING			Sale Proceeds
APRIL	8603339105		5800683731			8603330591
BEGINNING CASH	$	2,002,722		($237)	(1)	$	99,827,914
CASH - END OF MONTH	$	2,003,790		($541,900)	(2)	$	97,635,377

Notes:

Please find the following attached: (i) Bank statement copies for each account listed above (ii) a reconciliation of the Debtor’s unrestricted cash balance as of April 30, 2004 (iii) an excerpt from the Debtors’ cash forecast, and (iv) a schedule of actual and projected liabilities to be assumed by SeverStal.

All Estate funds were transferred from the Comerica bank accounts to newly created LaSalle Bank accounts during the month ended March 31, 2004. The following Comerica accounts were subsequently closed and are no longer being utilized by the Estate: (i) Escrow Account, #1076119823, (ii) Estate Checking, #1850844851 and (iii) Investment Account, #19900683-00.

In addition to the Debtors’ unrestricted bank accounts as of April 30, 2004, Estate funds are escrowed as follows: (i) $4.2M as cash collateral for outstanding letters of credit, (ii) $2.3M for the payment of property taxes and mechanics’ liens, (iii) $150,000 for outstanding checks at the close of the SeverStal asset purchase.

(1) Funding of the Estate Checking account was delayed at month end due to a banking holiday. A transfer of $150,000 was received in the Estate Checking account on June, 1, 2004.

(2) A wire request for the transfer of $600,000 from the Estate Investment account to the Estate Checking account was sent to LaSalle Bank on June 29, 2004. The wire transfer was not processed by LaSalle Bank until July 1, 2004.

Rouge Industries, Inc.
Unrestricted Cash Activity - LaSalle Bank Accounts
Month ended June 30, 2004 Case No.: 03-13272
Reporting Period: June, 2004

RII - Checking Account (Acct. # 5800683731)
Beginning Balance	$	71,050.80
Plus
Receipts
Funding from LaSalle Investment Account (#8603330591)		150,000.00
Total Receipts		150,000.00
Less
Disbursements
SeverStal		(122,702.00	)
BCBS - Cluster Plan for leaves		(101,782.89	)
Development Specialists		(57,738.57	)
Austin McNichols Insurance		(18,862.50	)
Frost Brown & Todd		(10,000.00	)
Manning Ventures, Inc.		(5,000.00	)
ShawGussisFishmanGlantzWolfson & Towbin LLC		(5,000.00	)
Goldberg Kohn		(5,000.00	)
IRS - 401K termination		(225.00	)
Subtotal - Disbursements		(326,310.96	)
Ending Balance - Bank		(105,260.16	)
Check Float		(436,639.79	)
Ending Balance - Book		(541,899.95	)
RII - Investment Account (Acct. # 8603330591)
Beginning Balance	$	99,827,914.23
Plus
Towers Perrin Refund		52,906.00
Interest - LaSalle		52,528.98
		105,434.98
Less
UAW Settlement Escrow		(1,947,972.00	)
FTI Consulting		(200,000.00	)
Funding of LaSalle Checking Account (Acct. #5800683731)		(150,000.00	)
Subtotal - Disbursements		(2,297,972.00	)
Ending Balance	$	97,635,377.21
RII - Escrow Account Professional Fee Carve Out (Acct. # 8603339105)
Beginning Balance	$	2,002,722.49
Plus
Interest		1,067.02
Ending Balance	$	2,003,789.51
ENDING BALANCE - UNRESTRICTED CASH	$	99,097,266.77

All Estate funds were transferred from the Comerica bank accounts to newly created LaSalle Bank accounts during the month ended March 31, 2004. The following Comerica accounts were subsequently closed and are no longer being utilized by the Estate: (i) Escrow Account, #1076119823, (ii) Estate Checking, #1850844851 and (iii) Investment Account, #19900683-00.

ROUGE INDUSTRIES, INC.
Estate Cash Flow
Forecast as of July 14, 2004

	FEBRUARY		MARCH		APRIL		MAY		JUNE		JULY
	Actual		Actual		Actual		Actual		Actual		Forecast
Beginning Estate Cash	$	113,363,867	$	101,842,989	$	102,739,868	$	102,302,229	$	101,830,400	$	99,097,267
Satisfaction of Perfected Liens	$	—	$	—	$	—	$	—	$	—	$	—
Pre-Closing Expenses
Professional Fees
Taxes
Employment Costs Other Than Taxes:
Severance Costs
Other Excluded Liabilities						76,600
Subtotal — Pre-Closing Expenses	$	—	$	—	$	76,600	$	—	$	—	$	—
Post Closing Administrative Expenses:
Professional Fees	$	200,000	$	200,750	$	299,753	$	237,728	$	553,821	$	331,366
Ordinary Course Professionals				7,082		20,442		21,466		31,600		154,351
Other Payroll / Support (1)				7,080		2,573		82,699		200,666		222,826
Occupancy Costs				—		—				—		—
Insurance				700,250		48,000		—		—		—
Bank Fees		55,557		—		—		—		—		7,500
Other				12,535		—				36,309		25,000
Post-Close Benefits for Separated Employees (2)				127,653		61,308		264,816		2,017,240		360,378
Subtotal — Post-Closing Expenses	$	255,557	$	1,055,351	$	432,076	$	606,709	$	2,839,635	$	1,101,422
Total Expenses	$	255,557	$	1,055,351	$	508,676	$	606,709	$	2,839,635	$	1,101,422
Cash Inflows
Cancellation of LCs		6,270,000										4,224,000
Transfer of Funded Professional Fee Carve Out				2,000,000
Return of Returned Check Reserve												150,000
Settlement of County Property Taxes
Other		1,966,722						78,757		52,906
Interest Income (at .7% per year)		54,122		32,482		71,037		56,122		53,596		57,807
Total Cash Inflows	$	8,290,843	$	2,032,482	$	71,037	$	134,879	$	106,502	$	4,431,807
Distributions
Bank One		8,000,000
Cleveland-Cliffs		11,556,165
Ford
Reclamation Claimants
Unsecured Creditors				80,251
Total Distributions	$	19,556,165	$	80,251	$	—	$	—	$	—	$	—
Ending Estate Cash	$	101,842,989	$	102,739,868	$	102,302,229	$	101,830,400	$	99,097,267	$	102,427,652
Memo
Cumulative Pmt. of Liabilities Assumed by SNA		5,013,718		7,458,929		7,783,808		8,254,481		8,692,923		9,829,753
Funds in Disbursement Account		1,000		225,140		305,721

[Additional columns below]

[Continued from above table, first column(s) repeated]

	AUGUST		SEPTEMBER		OCTOBER		NOVEMBER		DECEMBER		Cumulative
	Forecast		Forecast		Forecast		Forecast		Forecast		Total
Beginning Estate Cash	$	102,427,652	$	101,535,766	$	100,429,497	$	99,533,871	$	97,330,886	$	113,363,867
Satisfaction of Perfected Liens	$	—	$	—	$	—	$	—	$	—	$	—
Pre-Closing Expenses
Professional Fees												—
Taxes												—
Employment Costs Other Than Taxes:												—
Severance Costs												—
Other Excluded Liabilities												76,600
Subtotal — Pre-Closing Expenses	$	—	$	—	$	—	$	—	$	—	$	76,600
Post Closing Administrative Expenses:
Professional Fees	$	720,943	$	942,999	$	683,644	$	590,547	$	2,182,918	$	6,944,469
Ordinary Course Professionals		62,000		27,000		27,000		27,000		22,000		399,941
Other Payroll / Support (1)		130,500		130,500		130,500		130,500		185,500		1,223,345
Occupancy Costs		3,500		3,500		3,500		3,500		3,500		17,500
Insurance		—		—		—		—		—		748,250
Bank Fees		7,500		7,500		7,500		7,500		7,500		100,557
Other		25,000		25,000		25,000		25,000		25,000		198,844
Post-Close Benefits for Separated Employees (2)		2,192		29,000		77,065		—		—		2,939,652
Subtotal — Post-Closing Expenses	$	951,635	$	1,165,499	$	954,209	$	784,047	$	2,426,418	$	12,572,558
Total Expenses	$	951,635	$	1,165,499	$	954,209	$	784,047	$	2,426,418	$	12,649,158
Cash Inflows
Cancellation of LCs												10,494,000
Transfer of Funded Professional Fee Carve Out												2,000,000
Return of Returned Check Reserve												150,000
Settlement of County Property Taxes												—
Other												2,098,385
Interest Income (at .7% per year)		59,749		59,229		58,584		58,061		56,776		617,566
Total Cash Inflows	$	59,749	$	59,229	$	58,584	$	58,061	$	56,776	$	15,359,951
Distributions
Bank One												8,000,000
Cleveland-Cliffs												11,556,165
Ford												—
Reclamation Claimants								1,477,000				1,477,000
Unsecured Creditors												80,251
Total Distributions	$	—	$	—	$	—	$	1,477,000	$	—	$	21,113,416
Ending Estate Cash	$	101,535,766	$	100,429,497	$	99,533,871	$	97,330,886	$	94,961,244	$	94,961,244
Memo
Cumulative Pmt. of Liabilities Assumed by SNA		9,941,866		10,000,000		10,000,000		10,000,000		10,000,000		10,000,000
Funds in Disbursement Account

Notes

(1)	Such amounts paid by the Estate and/or assumed by SeverStal, NA may be subject to further negotiations and/or Court approval.
(2)	Budgeted amounts assume that all separated employees are converted to premium-based plans, and that no excessive pipeline claims are incurred for February or March.

Privileged and Confidential

1 of 3

ROUGE INDUSTRIES, INC.
Assumed Liabilities
Forecast as of July 14, 2004

			February		March		April		May		June
	Budgeted		Actual		Actual		Actual		Actual		Actual
Pre Closing Date Administrative & Lien Expenses
Professional Fees:
Transaction & Unpaid Pre-Closing Costs	$	5,004,708	$	302,104		1,838,585		252,126		152,101		267,653
Taxes:
Sales & Use, Franchise and Other Taxes				34,608		—		—		—		—
Payroll Taxes		495,292		149,272		452		—		17,738		—
Employment Costs Other Than Taxes:
Accrued Wages		2,300,000		1,525,640		700		—		—		—
Unprocessed Insurance Claims		200,000		—		—		—		—		—
Incurred But Not Reported Insurance Claims		800,000		—		368,416		—		—		—
Life and Disability Insurance		700,000		83,647		—		—		—		—
Post Petition Postemployment Cost Reserve		200,000		—		15,289		—		—		—
Other Employment Costs (Trust Fund)		300,000		129,119		78,695		2,039		—		—
Other Excluded Liabilities		—		37,654		14		1,786		—		—
Total Pre Closing Date Administrative & Lien Expenses	$	10,000,000	$	2,262,044	$	2,302,150	$	255,952	$	169,839	$	267,653
Post Closing Administrative Expenses
Post Closing Professional Fees		—		—	$	20,102		—	$	79,364	$	166,304
Estate Contract Pay (1)		—		—		—		—		—		—
D&O Insurance		—		—		—		—		—		—
Ordinary Course Professionals		—		—		—		—		3,059		—
Bank Fees		—		—		—		—		—		—
Occupancy Costs		—		—		—		—		—		—
Ad Hoc Clerical Support		—		—		—		—		—		—
Other		—		—		—		—		—		—
Post Close Benefits for Separated Employees (2)		—		95,634		122,958		68,928		218,412		4,486
Total Post Closing Administrative Expenses	$	—	$	95,634	$	143,060	$	68,928	$	300,834	$	170,789
Total Expenses	$	10,000,000	$	2,357,678	$	2,445,210	$	324,880	$	470,673	$	438,442
Morgan Joseph fee (paid at close)				2,656,040
Cumulative			$	5,013,718	$	7,458,929	$	7,783,808	$	8,254,481	$	8,692,923

[Additional columns below]

[Continued from above table, first column(s) repeated]

	July		August		September		October		November		December
	Forecast		Forecast		Forecast		Forecast		Forecast		Forecast		Total
Pre Closing Date Administrative & Lien Expenses
Professional Fees:
Transaction & Unpaid Pre-Closing Costs	$	152,412	$	—	$	—	$	—	$	—	$	—	$	2,964,980
Taxes:
Sales & Use, Franchise and Other Taxes		—		—		—		—		—		—		34,608
Payroll Taxes		—		—		—		—		—		—		167,461
Employment Costs Other Than Taxes:
Accrued Wages		—		—		—		—		—		—		1,526,340
Unprocessed Insurance Claims		—		—		—		—		—		—		—
Incurred But Not Reported Insurance Claims		284,245		62,113		58,134		—		—		—		772,907
Life and Disability Insurance		216,353		—		—		—		—		—		300,000
Post Petition Postemployment Cost Reserve		—		—		—		—		—		—		15,289
Other Employment Costs (Trust Fund)		—		—		—		—		—		—		209,853
Other Excluded Liabilities		50,000		50,000		—		—		—		—		139,454
Total Pre Closing Date Administrative & Lien Expenses	$	703,009	$	112,113	$	58,134	$	—	$	—	$	—	$	6,130,893
Post Closing Administrative Expenses
Post Closing Professional Fees	$	433,821	$	—	$	—	$	—	$	—	$	—	$	699,590
Estate Contract Pay (1)														—
D&O Insurance														—
Ordinary Course Professionals														3,059
Bank Fees														—
Occupancy Costs														—
Ad Hoc Clerical Support														—
Other														—
Post Close Benefits for Separated Employees (2)														510,417
Total Post Closing Administrative Expenses	$	433,821	$	—	$	—	$	—	$	—	$	—	$	1,213,066
Total Expenses	$	1,136,830	$	112,113	$	58,134	$	—	$	—	$	—	$	7,343,960
Morgan Joseph fee (paid at close)														2,656,040
Cumulative	$	9,829,753	$	9,941,866	$	10,000,000	$	10,000,000	$	10,000,000	$	10,000,000	$	10,000,000
							Additional Liabilities to be Assumed:						$	—

Notes

(1)	Such amounts paid by the Estate and/or assumed by SeverStal, NA may be subject to further negotiations and/or Court approval.
(2)	Budgeted amounts assume that all separated employees are converted to premium-based plans, and that no excessive pipeline claims are incurred for February or March.

Privileged and Confidential

2 of 3

LaSalle Bank N.A.
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
(312) 904-7272

MONTHLY CLIENT UPDATE

096	Enclosure(s)	12
ROUGE INDUSTRIES, INC.	Statement Date:	06/30/04
DEBTOR IN POSSESSION — DISBURSING ACCOUNT	Page 1 of 1
CASE NO 03-13272 DSI ATTENTION STEVEN VICTOR 70 W. MADISON ST. STE 2300 CHICAGO, IL 60602-4250	Account Number	5800683731

	5800683731
Statement Period:	06/01/04 - 06/30/04	Beginning Balance:	71,050.80
		Deposits and Additions:	216,112.57
		Checks/Debits/Fees:	392,423.53
		Ending Balance:	105,260.16-

Checks

Date			Check #		Reference		Amount			Date			Check #		Reference		Amount
	06/01/04			1035		60616801		5,000.00			06/09/04			1045		60105276		5,000.00
	06/02/04	*		1040		94928973		66,112.57			06/15/04			1046		28029170		5,000.00
	06/04/04	*		1040		31907887		66,112.57	*		06/09/04			1047		64024631		15,875.00
	06/09/04			1041		64024630		2,987.500			06/21/04			1048		70628403		225.00
	06/07/04			1042		94972535		35,670.32			06/18/04			1049		04134347		57,738.57
	06/15/04			1043		47006869		5,000.00			06/30/04	*		1056		41909828		122,702.00
	06/08/04			1044		08481698		5,000.00

*  Indicates preceding check(s) not processed this statement period (checks could be listed below under Automated Checks).

Other Withdrawals and Deposits

Date		Description	Withdrawals	Deposits
	06/01/04	INTERNAL TRFR CREDIT REF #040601005567			150,000.00
	06/03/04	EFFECTIVE DATE 6/20/04 CHECK REVERSAL CHECK # 1040			66,112.57	*

Daily Account Summary

Date		Withdrawals		Deposits		Balance
	05/31/04						71,050.80
	06/01/04		5,000.00		150,000.00		216,050.80
	06/02/04		66,112.57				149,938.23
	06/03/04				66,112.57		216,050.80
	06/04/04		66,112.57				149,938.23
	06/07/04		35,670.32				114,267.91
	06/08/04		5,000.00				109,267.91
	06/09/04		23,862.50				85,405.10
	06/15/04		10,000.00				75,405.41
	06/18/04		57,738.57				17,666.84
	06/21/04		225.00				17,441.84
	06/30/04		122,702.00				105,260.16-

IMPORTANT INFORMATION

End of Statement

LaSalle Bank, N.A.

135 South LaSalle Street

Chicago, Illinois 60603

Member FDIC

(312) 904-7272

MONTHLY CLIENT UPDATE

096 NA	Enclosure(s)	0
ROUGE INDUSTRIES, INC	Statement Date:	06/30/04
DEBTOR IN POSSESSION SALES PROCEEDS ACCT	Page 1 of 1
CASE NO 03-13272	Account Number	8603330591
DSI ATTENTION STEVEN VICTOR
70 W MADISON ST STE 2300
CHICAGO IL 60602-4250

INSURED MONEY MARKET:	8603330591
Number of Days This Period:	30 Days	Beginning Balance:	99,827,914.23
Avg. Available Balance:	98,592,861.16	Deposits and Additions:	2,000,878.00
Interest Earned This Year:	192,855.07	Interest Paid:	52,528.98
		Checks/Debits/Fees:	4,245,944.00
		Ending Balance:	97,635,377.21

Other Withdrawals and Deposits

Date	Description	Withdrawals		Deposits
06/01/04	INTERNAL TRANSFER-TERMINAL		150,000.00
	REF # 040601005567
06/07/04	DEPOSIT				52,906.00
06/14/04	OUTGOING WIRE-TELL NON-REP		1,947,972.00
	REF # 040614009222
06/15/04	WIRE TRANSFER - INCOMING				1,947,972.00
	REF # 040615001688
06/15/04	QUALIFIED TERMINAL DOM WIRE		1,947,972.00
	REF # 040615004821
06/28/04	QUALIFIED TERMINAL DOM WIRE		200,000.00
	REF # 040628008484
06/30/04	INTEREST PAID				52,528.98

Daily Account Summary

Date	Withdrawals		Deposits		Balance
05/31/04						99,827,914.23
06/01/04		150,000.00				99,677,914.23
06/07/04				52,906.00		99,730,820.23
06/14/04		1,947,972.00				97,782,848.23
06/15/04		1,947,972.00		1,947,972.00		97,782,848.23
06/28/04		200,000.00				97,582,848.23
06/30/04				52,528.98		97,635,377.21

IMPORTANT INFORMATION

End of Statement

LaSalle Bank N.A.

135 South LaSalle Street

Chicago, Illinois 60603

Member FDIC

(312) 904-7272

MONTHLY CLIENT UPDATE

096 NA	Enclosure(s)	0
ROUGE INDUSTRIES, INC D-I-P	Statement Date:	06/30/04
PROFESSIONAL FEE CARVE OUT	Page 1 of 1
CASE NO 03-13272	Account Number	8603339105
DSI ATTENTION STEVEN VICTOR
70 W MADISON ST STE 2300
CHICAGO IL 60602-4250

INSURED MONEY MARKET:	8603339105
Number of Days This Period:	30 Days	Beginning Balance:	2,002,722.49
Avg. Available Balance:	2,002,722.51	Deposits and Additions:	.00
Interest Earned This Year:	3,789.51	Interest Paid:	1,067.02
		Checks/Debits/Fees:	.00
		Ending Balance:	2,003,789.51

Other Withdrawals and Deposits

Date	Description	Withdrawals	Deposits
06/30/04	INTEREST PAID		1,067.02

Daily Account Summary

Date	Withdrawals	Deposits	Balance
05/31/04			2,002,722.49
06/30/04		1,067.02	2,003,789.51

IMPORTANT INFORMATION

End of Statement                    

Subsequent to the execution of the Asset
purchase Agreement on January 30, 2004,
the Debtor is no longer operating or
generating revenues. Accordingly the Debtor
did not prepare an income statement for the
month ended February 29, 2004, and does not
expect to do so for future months. Please
see the attached Estate Cash Flow for
further details of the Debtors’ operations

In re: Rouge Industries, Inc., et al	Case No.:	03-13272
	Reporting Period:	June, 2004

CONSOLIDATING STATEMENT OF OPERATIONS
in $ millions

The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

											Total		Cumulative
	RII		RSC		Eveleth		QS Steel		Adj.		February		Filing to Date
REVENUES
Gross Revenues											$	0.000	$	298.036
Less: Returns and Allowances														0
Net Revenue	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000	$	298.036
COST OF GOODS SOLD
Beginning Inventory
Add: Purchases
Add: Cost of Labor
Add: Other Costs (attach schedule)
Less: Ending Inventory
Cost of Goods Sold		0.000		0.000		0.000		0.000		0.000		0.000		252.662
Gross Profit	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000	$	45.374
OPERATING EXPENSES
Advertising
Auto and Truck Expense
Contributions
Employee Benefits Programs
Insider Compensation*
Insurance														4.053
Management Fees/Bonuses
Office Expense
Pension & Profit-Sharing Plans
Repairs and Maintenance														28.041
Rent and Lease Expense														4.292
Salaries/Commissions/Fees
Supplies
Taxes - Payroll
Taxes - Real Estate														1.663
Taxes - Other
Travel and Entertainment
Utilities														14.156
Other (attach schedule)														12.726
Total Operating Expenses Before Depreciation		0.000		0.000		0.000		0.000		0.000		0.000		64.994
Depreciation/Depletion/Amortization														6.342
Net Profit (Loss) Before Other Income & Expenses	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000		(25.962	)
OTHER INCOME AND EXPENSES
Other Income (attach schedule)														0.940
Income from Unconsolidated Subsidiaries														1.360
Interest Expense														5.015
Other Expense (attach schedule)														0.164
Net Profit (Loss) Before Reorganization Items	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000		($28.840	)
REORGANIZATION ITEMS
Professional Fees(1)														8.975
Loss from SeverStal Transaction														216.216
U. S. Trustee Quarterly Fees
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
Gain (Loss) from Sale of Equipment
Other Reorganization Expenses (attach schedule)
Total Reorganization Expenses
Income Taxes
Net Profit (Loss)	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000	$	0.000		($254.031	)

*“Insider” is defined in 11 U.S.C. Section 101(31).

Notes

⁽¹⁾ Net of pre-petition retainers applied.

FORM MOR-2

(9/99)

 
Per agreement with the office of the U.S. Trustee, this
page left intentionally blank
 

In re: Rouge Industries, Inc., et al	Case No.:	03-13272
	Reporting Period:	June, 2004

STATEMENT OF OPERATIONS - continuation sheet
in $ millions

		Cumulative
BREAKDOWN OF “OTHER” CATEGORY	February, 2004	Filing to Date
Other Costs
Other Operational Expenses
Other Income
Other Expenses
Other Reorganization Expenses

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:

Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.

FORM MOR-2 (CONT.)
(9/99)

In re: Rouge Industries, Inc., et al	Case No.: 03-13272
	Reporting Period: June, 2004

CONSOLIDATING BALANCE SHEET
in $ millions

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.

															BOOK VALUE @						BOOK VALUE @
	Rouge			Rouge Steel			Eveleth								6/30/04			Accrual			6/30/04
	Industries			Company			Taconite		QS Steel			Adj.			(Cash Basis)			Adjustments (1)			(Accrual Basis)
ASSETS
CURRENT ASSETS
Unrestricted Cash and Equivalents				$	99.1										$	99.1			—		$	99.1
Restricted Cash and Cash Equivalents					6.7											6.7			—			6.7
Accounts Receivable (Net)		25.3			56.9					11.1			(93.1	)		0.2			0.1			0.3
Notes Receivable																0.0			—			—
Inventories																0.0			—			—
Prepaid Expenses					0.7											0.7			—			0.7
Professional Retainers																0.0			—			—
Other Current Assets (attach schedule)																0.0			—			—
TOTAL CURRENT ASSETS	$	25.3		$	163.4		$	0.0	$	11.1			($93.1	)	$	106.7			0.1		$	106.8
PROPERTY AND EQUIPMENT
Real Property and Improvements															$	0.0			—			—
Machinery and Equipment (“Waste Oxide”)					9.0											9.0			—			9.0
Construction in Progress																0.0			—			—
Leasehold Improvements																0.0			—			—
Vehicles																0.0			—			—
Less Accumulated Depreciation					(6.0	)										(6.0	)		—			(6.0	)
TOTAL PROPERTY & EQUIPMENT	$	0.0		$	3.0		$	0.0	$	0.0		$	0.0		$	3.0		$	0.0			3.0
OTHER ASSETS
Long Term Receivable																0.0			8.5			8.5
Investment in Unconsolidated Subsidiaries					9.4			2.2					(11.7	)		0.0			—			0.0
Pension Related Assets					15.3											15.3			—			15.3
TOTAL OTHER ASSETS	$	0.0		$	24.7		$	2.2	$	0.0			($11.7	)	$	15.3			8.5			23.8
TOTAL ASSETS	$	25.3		$	191.2		$	2.2	$	11.1			($104.8	)	$	125.0			8.7		$	133.7
LIABILITIES AND OWNER EQUITY															BOOK VALUE @ 6/30/04
LIABILITIES NOT SUBJECT TO COMPROMISE (Post-Petition)
Accounts Payable															$	0.0			—		$	0.0
Taxes Payable					1.3											1.3			—			1.3
Wages Payable																0.0			—			—
Accrued Vacation																0.0			—			—
Secured Debt / Adequate Protection Payments 2					0.9											0.9			1.4			2.3
Professional Fees																0.0			—			—
Other Postpetition Liabilities (attach schedule)																0.0			—			—
TOTAL POSTPETITION LIABILITIES	$	0.0		$	2.2		$	0.0	$	0.0		$	0.0		$	2.2			1.4			3.6
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt					75.2											75.2			—			75.2
Priority Debt					9.1			0.2		0.2						9.6			(2.8	)		6.9
Unsecured Debt		39.0			302.7			0.0		42.7			(93.1	)		291.3			11.3			302.6
TOTAL PRE-PETITION LIABILITIES	$	39.0		$	387.0		$	0.3	$	43.0			($93.1	)	$	376.1		$	8.5		$	384.6
TOTAL LIABILITIES	$	39.0		$	389.2		$	0.3	$	43.0			($93.1	)	$	378.3			9.9		$	388.2
OWNER EQUITY
Capital Stock				$	0.2										$	0.2			—			0.2
Additional Paid-In Capital					130.3											130.3			—			130.3
Retained Earnings — Pre-Petition		(13.6	)		(59.6	)		2.0		8.6						(62.6	)		—			(62.6	)
Retained Earnings — Post-Petition		(0.1	)		(221.0	)				(40.5	)		(11.7	)		(273.2	)		(1.3	)		(274.4	)
Additional Minimum Pension Liability					(48.0	)										(48.0	)		—			(48.0	)
NET OWNER EQUITY		($13.6	)		($198.0	)	$	2.0		($31.9	)		($11.7	)		($253.2	)		(1.3	)		(254.5	)
TOTAL LIABILITIES AND OWNERS’ EQUITY	$	25.3		$	191.2		$	2.2	$	11.1			($104.8	)	$	125.0		$	8.7		$	133.7

Notes:

Substantially all of the Debtors’ assets were acquired on January 30, 2004 by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement (“APA”). The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004.

(1) Accrual Adjustments reflect the cumulative proposed adjustments that would need to be made to the Debtors’ books and records in order to conform them to the accrual-based books and records kept by SeverStal N.A. on behalf of the Estate.

(2) Represents accrued interest related to Ford Motor Company’s secured claim against the Estate. The Estate reserves the right to dispute the validity of any claim and or security interest brought against the Estate. This accrual does not represent an admission of validity for any claim brought against the Estate.

FORM MOR-3
(9/99)

Per agreement with the office of the U.S. Trustee,
this page left intentionally blank.

In re: Rouge Industries, Inc., et al		Case No.: 03-13272
	Reporting Period: June, 2004

BALANCE SHEET - continuation sheet
in $ millions

ASSETS June, 2004

Other Current Assets

Other Assets

LIABILITIES AND OWNER EQUITY June, 2004

Other Postpetition Liabilities

Adjustments to Owner Equity

Postpetition Contributions (Distributions) (Draws)

Restricted Cash: Cash that is restricted for a specific use and not available to fund operations. Typically, restricted cash is segregated into a separate account, such as an escrow account.

FORM MOR-3 (CONT.)

(9/99)

The Debtors have timely filed returns and made
payments for any tax liabilities incurred during the post-
petition period.

In re: Rouge Industries, Inc., et al	Case No.: 03-13272
	Reporting Period: June, 2004

STATUS OF POSTPETITION TAXES

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attach photocopies of any tax returns filed during the reporting period.

	May, 2004
	Beginning		Amount						Ending
	Tax		Withheld or		Amount		Date	Check No.	Tax
	Liability		Accrued		Paid		Paid	or EFT	Liability
Federal
Withholding		0		0		0				0
FICA-Employee		0		0		0				0
FICA-Employer		0		0		0				0
Unemployment		0		0		0				0
Income		0		0		0				0
Total Federal Taxes	$	0.0	$	0.0	$	0.0			$	0.0
State and Local
Withholding		0		0		0				0
Sales and Use		0		0		0				0
Excise		0		0		0				0
Unemployment		0		0		0				0
Real Property		0		0		0				0
Income and Franchise
Personal Property		0		0		0				0
Total State and Local		0.0
Total Taxes

SUMMARY OF UNPAID POSTPETITION DEBTS

Attach aged listing of accounts payable.

	Number of Days Past Due (@ 5/31/04)
	Current		0-30	31-60	61-90	Over 90	Total
Accounts Payable
Wages Payable
Taxes Payable		1.3						1.3
Rent/Leases-Building
Rent/Leases-Equipment
Secured Debt/Adequate Protection Payments		2.3						2.3
Professional Fees
Amounts Due to Insiders*
Other Accruals (workers comp, etc.)
Total Postpetition Debts	$	3.6					$	3.6

Explain how and when the Debtor intends to pay any past-due postpetition debts.

*“Insider” is defined in 11 U.S.C. Section 101(31).

FORM MOR-4

(9/99)

In re: Rouge Industries, Inc., et al	Case No.:	03-13272
	Reporting Period:	June, 2004

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation		06/30/04
Total Accounts Receivable at the beginning of the reporting period	$	—
+ Amounts reclassed during the period		—
- Amounts collected during the period		—
Total Accounts Receivable at the end of the reporting period	$	—
Accounts Receivable Aging		06/30/04
Unbilled amounts (est.)1	$	0.2
0 - 30 days old		—
31 - 60 days old		—
61 - 90 days old		—
91+ days old		—
Total Accounts Receivable		0.2
Plus: Reserves for Doubtful Accounts		—
Accounts Receivable (Gross)	$	0.2

DEBTOR QUESTIONNAIRE

Must be completed each month		Yes	No
1.	Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X
2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X
3.	Have all postpetition tax returns been timely filed? If no, provide an explanation below.	X
4.	Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.	X

Notes:
1) Ford Motor Company (“FMC”) deducted $192,270.79 from trade payments due to the Estate as a result of legal and professional fees incurred by FMC related to the bankruptcy. The Estate charged this amount back to FMC and contends that this amount is a valid receivable to the Estate.