Exhibit 99.1

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

In re: Rouge Industries, Inc., et al    
Debtors Case No.: 03-13272
Reporting Period: July, 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	8/23/04
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: July, 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	$	2,003,790	($	541,900	) (1)	$	97,635,377
CASH - END OF MONTH	$	2,004,893	$	85,850		$	96,572,434

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) 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: July, 2004

RII — Checking Account (Acct. #5800683731)
Beginning Balance	$	(105,260.16	)
Plus
Receipts
Funding from LaSalle Investment Account (#8603330591)		1,100,000.00
Unicare Refunds		350.84
Total Receipts		1,100,350.84
Less
Disbursements
Morris, Nichols		(312,507.87	)
Reed Smith		(109,300.95	)
Deloitte & Touche		(103,013.00	)
Clark Hill		(38,459.14	)
Blue Cross		(33,597.55	)
George Johnson & Company		(31,600.00	)
State Street		(17,446.65	)
Bowne of New York		(5,060.00	)
Frost Brown & Todd		(5,000.00	)
Goldberg Kohn		(5,000.00	)
Manning Ventures		(5,000.00	)
ShawGussisFishmanGlantzWolfson&Towbin LLC		(5,000.00	)
State of Michigan		(3,750.00	)
Towers Perrin		(905.00	)
Subtotal — Disbursements		(675,640.16	)
Ending Balance — Bank		319,450.52
Check Float		(234,853.92	)
Ending Balance — Book	$	84,596.60
RII — Investment Account (Acct. #8603330591)
Beginning Balance	$	97,635,377.21
Plus
BCBS Refund from UAW		33,597.55
Congress — Check Reserve		150,000.00
Interest		53,459.36
		237,056.91
Less
Funding of LaSalle Checking Account (Acct. #5800683731)		(1,100,000.00	)
FTI Consulting		(200,000.00	)
Subtotal — Disbursements		(1,300,000.00	)
Ending Balance	$	96,572,434.12
RII — Escrow Account Professional Fee Carve Out (Acct. # 8603339105)
Beginning Balance	$	2,003,789.51
Plus
Interest		1,103.18
Ending Balance	$	2,004,892.69
ENDING BALANCE — UNRESTRICTED CASH	$	98,661,923.41

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 August 19, 2004

	February		March		April		May		June		July
	Actual		Actual		Actual		Actual		Actual		Actual
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	$	562,644
Ordinary Course Professionals				7,082		20,442		21,466		31,600		39,510
Other Payroll / Support (1)				7,080		2,573		82,699		200,666		—
Occupancy Costs				—		—				—		—
Insurance				700,250		48,000		—		—		—
Bank Fees		55,557		—		—		—		—		3,750
Other				12,535		—				36,309		10,445
Post-Close Benefits for Separated Employees (2)				127,653		61,308		264,816		2,017,240		57,505
Subtotal — Post-Closing Expenses	$	255,557	$	1,055,351	$	432,076	$	606,709	$	2,839,635	$	673,854
Total Expenses	$	255,557	$	1,055,351	$	508,676	$	606,709	$	2,839,635	$	673,854
Cash Inflows
Cancellation of LCs		6,270,000
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		33,948
Interest Income (at .7% per year)		54,122		32,482		71,037		56,122		53,596		54,563
Total Cash Inflows	$	8,290,843	$	2,032,482	$	71,037	$	134,879	$	106,502	$	238,511
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	$	98,661,923
Memo
Cumulative Pmt. of Liabilities Assumed by SNA		5,013,718		7,458,929		7,783,808		8,254,481		8,796,374		8,820,787
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	$	98,661,923	$	97,893,543	$	96,785,149	$	95,887,397	$	93,682,285	$	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	$	262,573	$	942,999	$	683,644	$	590,547	$	2,549,968	$	7,084,428
Ordinary Course Professionals		176,841		27,000		27,000		27,000		22,000		399,941
Other Payroll / Support (1)		348,326		130,500		130,500		130,500		185,500		1,218,345
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		96,807
Other		25,000		25,000		25,000		25,000		25,000		184,289
Post-Close Benefits for Separated Employees (2)		2,192		29,000		77,065		—		—		2,636,779
Subtotal — Post-Closing Expenses	$	825,933	$	1,165,499	$	954,209	$	784,047	$	2,793,468	$	12,386,339
Total Expenses	$	825,933	$	1,165,499	$	954,209	$	784,047	$	2,793,468	$	12,462,939
Cash Inflows
Cancellation of LCs												6,270,000
Transfer of Funded Professional Fee Carve Out												2,000,000
Return of Returned Check Reserve												150,000
Settlement of County Property Taxes												—
Other												2,132,333
Interest Income (at .7% per year)		57,553		57,105		56,458		55,934		54,648		603,619
Total Cash Inflows	$	57,553	$	57,105	$	56,458	$	55,934	$	54,648	$	11,155,952
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	$	97,893,543	$	96,785,149	$	95,887,397	$	93,682,285	$	90,943,465	$	90,943,465
Memo
Cumulative Pmt. of Liabilities Assumed by SNA		9,891,866		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 2

ROUGE INDUSTRIES, INC.
Assumed Liabilities
Forecast as of August 19, 2004

			February		March		April		May		June		July
	Budgeted		Actual		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	$	186,802		14,995
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		87,439		9,417
Total Post Closing Administrative Expenses	$	—	$	95,634	$	143,060	$	68,928	$	300,834	$	274,240	$	24,413
Total Expenses	$	10,000,000	$	2,357,678	$	2,445,210	$	324,880	$	470,673	$	541,893	$	24,413
Morgan Joseph fee (paid at close)				2,656,040
Cumulative			$	5,013,718	$	7,458,929	$	7,783,808	$	8,254,481	$	8,796,374	$	8,820,787

[Additional columns below]

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

	August		September		October		November		December
	Forecast		Forecast		Forecast		Forecast		Forecast		Total
Pre Closing Date Administrative & Lien Expenses
Professional Fees:
Transaction & Unpaid Pre-Closing Costs	$	—	$	—	$	—	$	—	$	—	$	2,812,569
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		346,357		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	$	612,711	$	108,134	$	—	$	—	$	—	$	5,978,482
Post Closing Administrative Expenses
Post Closing Professional Fees	$	458,369	$	—	$	—	$	—	$	—	$	759,632
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)												602,788
Total Post Closing Administrative Expenses	$	458,369	$	—	$	—	$	—	$	—	$	1,365,478
Total Expenses	$	1,071,080	$	108,134	$	—	$	—	$	—	$	7,343,960
Morgan Joseph fee (paid at close)												2,656,040
Cumulative	$	9,891,866	$	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 Confindential 2 of 2

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

MONTHLY CLIENT UPDATE

096	Enclosure(s)	15
ROUGE INDUSTRIES, INC	Statement Date:	07/31/04
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:	07/01/04 - 07/31/04	Beginning Balance:	105,260.16	-
		Deposits and Additions:	1,100,350.84
		Checks/Debits/Fees:	675,640.16
		Ending Balance:	319,450.52

Checks

Date			Check #		Reference		Amount		Date			Check #		Reference		Amount
	07/01/04			1050		97377484		33,597.55		07/15/04			1059		82108456		5,060.00
	07/06/04			1051		34212083		38,459.14		07/14/04			1060		28326041		5,000.00
	07/12/04			1052		86005950		103,013.00		07/13/04			1061		07872880		5,000.00
	07/06/04			1053		33827261		31,600.00		07/12/04			1062		79421976		5,000.00
	07/01/04			1054		15117967		102,142.50		07/16/04			1063		55914453		5,000.00
	07/02/04			1055		53506234		109,300.95		07/16/04	*		1065		85315867		210,365.37
	07/15/04	*		1057		82313014		17,446.65		07/22/04			1066		13312847		3,750.00
	07/06/04			1058		83807935		905.00

*  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
	07/01/04	INTERNAL TRFR CREDIT REF # 040701005090			600,000.00
	07/09/04	DEPOSIT			350.84
	07/14/04	INTERNAL TRFR CREDIT REF # 040714004223			500,000.00

Daily Account Summary

Date		Withdrawals		Deposits		Balance
	06/30/04						105,260.16	-
	07/01/04		135,740.05		600,000.00		358,999.79
	07/02/04		109,300.95				249,698.84
	07/06/04		70,964.14				178,734.70
	07/09/04				350.84		179,085.54
	07/12/04		108,013.00				71,072.54
	07/13/04		5,000.00				66,072.54
	07/14/04		5,000.00		500,000.00		561,072.54
	07/15/04		22,506.65				538,565.89
	07/16/04		215,365.37				323,200.52
	07/22/04		3,750.00				319,450.52

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:	07/31/04
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:	97,635,377.21
Avg. Available Balance:	96,854,305.30	Deposits and Additions:	183,734.12
Interest Earned This Year:	246,177.86	Interest Paid:	53,322.79
		Checks/Debits/Fees:	1,300,000.00
		Ending Balance:	96,572,434.12

Other Withdrawals and Deposits

Date	Description	Withdrawals		Deposits
07/01/04	INTERNAL TRANSFER-TERMINAL REF # 040701005090		600,000.00
07/07/04	WIRE TRANSFER - INCOMING REF # 040707007751				150,000.00
07/14/04	INTERNAL TRANSFER-TERMINAL REF # 040714004223		500,000.00
07/16/04	DEPOSIT				33,597.55
07/28/04	QUALIFIED TERMINAL DOM WIRE REF # 040728007405		200,000.00
07/30/04	DEPOSIT				136.57
07/30/04	EFFECTIVE DATE  7/31/04 INTEREST PAID				53,322.79

Daily Account Summary

Date	Withdrawals		Deposits		Balance
06/30/04						97,635,377.21
07/01/04		600,000.00				97,035,377.21
07/07/04				150,000.00		97,185,377.21
07/14/04		500,000.00				96,685,377.21
07/16/04				33,597.55		96,718,974.76
07/28/04		200,000.00				96,518,974.76
07/30/04				53,459.36		96,572,434.12

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
ROUGE INDUSTRIES, INC D-I-P
PROFESSIONAL FEE CARVE OUT
CASE NO 03-13272
DSI ATTENTION STEVEN VICTOR
70 W MADISON ST STE 2300
CHICAGO IL 60602-4250 Enclosure(s)
Statement Date:
Page 1 of 1
Account Number 0
07/31/04

8603339105

INSURED MONEY MARKET:	8603339105
Number of Days This Period:	30 Days	Beginning Balance:	2,003,789.51
Avg. Available Balance:	2,003,789.51	Deposits and Additions:	.00
Interest Earned This Year:	4,892.69	Interest Paid:	1,103.18
		Checks/Debits/Fees:	.00
		Ending Balance:	2,004,892.69

Other Withdrawals and Deposits

Date	Description	Withdrawals	Deposits
07/30/04	EFFECTIVE DATE   7/31/04 INTEREST PAID		1,103.18

Daily Account Summary

Date	Withdrawals	Deposits	Balance
06/30/04			2,003,789.51
07/30/04		1,103.18	2,004,892.69

IMPORTANT INFORMATION

End of Statement

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

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

STATEMENT OF OPERATIONS - continuation sheet
in $ millions

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

		Cumulative
BREAKDOWN OF “OTHER” CATEGORY	July, 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: July, 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								7/31/04						7/31/04
	Industries			Company			Taconite		QS Steel			Adj.			(Debtors)			Adjustments (1)			(SNA)
ASSETS
CURRENT ASSETS
Unrestricted Cash and Equivalents				$	98.7										$	98.7			—		$	98.7
Restricted Cash and Cash Equivalents					6.5											6.5			—			6.5
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		$	162.8		$	0.0	$	11.1			($93.1	)	$	106.1			0.1		$	106.3
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		$	190.6		$	2.2	$	11.1			($104.8	)	$	124.4			8.7		$	133.1
LIABILITIES AND OWNER EQUITY															BOOK VALUE@
																7/31/04
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			1.7			2.6
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			1.7			3.8
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			302.5
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	)	$	378.2			10.2		$	388.4
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	)		(221.5	)				(40.5	)		(11.7	)		(273.7	)		(1.5	)		(275.3	)
Additional Minimum Pension Liability					(48.0	)										(48.0	)		—			(48.0	)
NET OWNER EQUITY		($13.6	)		($198.6	)	$	2.0		($31.9	)		($11.7	)		($253.8	)		(1.5	)		(255.3	)
TOTAL LIABILITIES AND OWNERS’ EQUITY	$	25.3		$	190.6		$	2.2	$	11.1			($104.8	)	$	124.4		$	8.7		$	133.1

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)

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

BALANCE SHEET - continuation sheet
in $ millions

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

ASSETS July, 2004

Other Current Assets

Other Assets

LIABILITIES AND OWNER EQUITY July, 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)

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

	July, 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 (@ 7/31/04)
	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		2.6						2.6
Professional Fees
Amounts Due to Insiders*
Other Accruals (workers comp, etc.)
Total Postpetition Debts	$	3.8					$	3.8

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:	July, 2004

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation		07/31/04
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		07/31/04
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.