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• Sales of 283,000 tons in the quarter, exceeding prior expectations
• EBITDA for the quarter of $7.5 million, or $8.8 million excluding a restructuring charge for salaried headcount reductions
• Solid performance during weak market conditions
• Strong liquidity with less than $25 million borrowed at year-end on the $150 million revolving credit facility

WARREN, OHIO, March 26, 2007 - WCI Steel, Inc. (OTC: WCIS.PK) announced today a net loss of $1.1 million for the quarter ending December 31, 2006, and net income for the eight-month period of $15.0 million. On May 1, WCI Steel purchased all the assets of former WCI Steel, Inc. (Old WCI) as part of its plan of reorganization.

For the quarter, the company reported:

• Shipments of 283,000
• Revenues from product sales of $191.2 million, or $676 per ton
• EBITDA of $7.5 million, or $85 per ton
• Operating loss of $1.2 million
• Net loss of $1.1 million prior to the PIK preferred dividend
• Net loss per diluted share of $0.11 for the quarter, and diluted earnings per share of $1.49 for the eight months since May 1

Patrick G. Tatom, president and chief executive officer, said: "Our performance demonstrates that WCI Steel was able to successfully weather a challenging quarter."

"Our shipments in the quarter exceeded our prior guidance largely due to sales of semi-finished steel. Our fourth quarter results fell short of our prior guidance, but reflected a more challenging marketplace," Tatom said. The supplementary financial information contains a comparison of fourth quarter performance versus the third quarter results and prior guidance.

Cynthia B. Bezik, chief financial officer, noted: "Our liquidity remains strong. At year-end, we had $2.4 million of cash on hand and $24.7 million borrowed under the $150 million revolving credit facility. Our borrowings under the revolving credit facility increased by only $4.9 million since September 30. Borrowings were significantly less than previously forecasted as slowing sales and lower receivable levels offset the normal seasonal build-up of iron ore pellets for the winter."

"The fourth quarter results reflect a variety of one-time adjustments related to fresh-start accounting as of May 1, 2006," Bezik added. "In particular, the May 1 valuation of property, plant and equipment was revised upward, resulting in $8.0 million of depreciation and amortization being recorded in the quarter. In the first quarter of 2007, however, we expect our depreciation expense to return to a more normal level of about $6.5 million. Also, for accounting purposes, we recognized a net retiree healthcare obligation of $188.6 million at May 1 that was subsequently reduced to $134.1 million at year-end, related to our obligation for USW represented employees and retirees. This has no impact on cash or on our on-going obligation, which is simply to fund a VEBA trust jointly administered with the USW. Our funding obligation under the collective bargaining agreement is fixed at $3.0 million per quarter plus a profit-sharing component. Reflecting this as a balance sheet obligation under GAAP does not affect the limited nature of the funding commitment under the collective bargainging agreement."

Calendar year 2006 shipments totaled 1,293,000 tons as compared with 1,194,000 tons in calendar year 2005 and 1,108,000 tons in calendar year 2004. Revenues for the calendar year 2006, including Old WCI, totaled $894.0 million.

Capital Expenditures
As previously announced in 2006, WCI Steel is investing $66 million in two major capital projects, a walking beam slab reheat furnace at the hot strip mill, which will be operational early in 2008, and a baghouse system to meet new federal air quality standards to be operational in April 2007. For the eight-month period ending December 31, 2006, WCI Steel spent $29.6 million in capital, primarily related to these two projects. As planned, in late November, one of the three pusher-style furnaces in the hot strip mill was decommissioned to allow construction to commence on the new walking beam furnace. As a result, the company expects to have excess semi-finished steel capacity and sell between 7 percent and 10 percent of its production as slabs until the walking beam furnace is commissioned.

Outlook
First quarter sales volume is expected to be 290,000 tons, modestly ahead of the 283,000 tons shipped in the fourth quarter of 2006. For the full year, sales volume is anticipated to total almost 1.3 million tons, including the sales of semi-finished steel. Once the walking beam furnace is operational in 2008, shipments are expected to approach 1.4 million tons of finished steel.

Although first quarter volume will exceed fourth quarter's levels, lower pricing, combined with additional costs related to damage to one of BOF vessels, will result in first quarter EBITDA performance below fourth quarter's level. In late January, on of the two BOF vessels was damaged, limiting hot metal production capability. This vessel was returned to service in mid-March. This incident, combined with the scheduled week outage in April for the BOF baghouse installation, will also reduce sales volume in the early part of the second quarter. Our expected average sales price in the first quarter is about $45 per ton below the $676 per ton realized in the fourth quarter.

Second quarter shipments are currently forecasted to be 310,000 tons. Although first quarter results are expected to be below fourth quarter 2006 results, our outlook for the second quarter reflects an improving market in both volume and pricing.

"Our future success is driven by aggressively focusing on three strategies: marketing differentiation, strengthening our core operations and pursuing external growth opportunities," Tatom said. "We are committed to executing these strategies to build WCI as a strong, independent, custom steel producer."

Background Information
WCI Steel, Inc. a Delaware corporation, was formed in March, 2006 and had no assets or liabilities until May 1, 2006. Under a plan of reorganization for WCI Steel, Inc. an Ohio corporation (Old WCI), confirmed by the U.S. Bankruptcy Court on March 30 and effective on May 1, 2006, WCI Steel, the newly formed company, acquired substantially all the assets of Old WCI. On May 1, 2006, WCI Steel issues $100 million 2016 senior secured notes, received $50 million in cash for the issuance of 5.0 million preferred shares and was obligated to issue 4.0 million shares of common stock to the creditors of Old WCI as bankruptcy claims are resolved. As of December 31, 2006, WCI Steel had distributed 3.9 million shares of common stock and expects to distribute the remainder in the first half of 2007.

The 5,250,000 shares of preferred stock currently outstanding have a 10 percent "payment-in-kind" (PIK) dividend, payable semi-annually on May 1 and November 1. The May 1, 2007 PIK dividend is payable to shareholders of record as of April 15, 2007. The preferred stock converts into common stock at a 1.2 ratio no later than May 1, 2008. Assuming conversion of the 5,250,000 shares of preferred stock and the 4.0 million shares of common stock, WCI Steel had approximately 10.3 million common shares outstanding on a fully diluted basis at year-end 2006.

Additional financial information on WCI Steel's financial performance including audited financial statements will be available on the company's website www.wcisteel.com in the "Investors" section later this week. Under the Indenture for the $100 million of senior secured notes, WCI Steel plans to exchange the notes with new notes with similar terms that will be registered with the SEC in the second quarter of 2007, and, at that time, the company expects to begin to file periodic financial reports with the SEC. \

Conference Call
You are invited to listen to the live broadcast of WCI Steel's conference call in which management will discuss 2006 results and the outlook for 2007, at 10:00 a.m. Eastern Time today. The conference call will be available on the internet at www.wcisteel.com, in the "Investors" section under the "Conference Calls" tab. The call will be archived and available for subsequent replay.

About WCI Steel, Inc.
WCI Steel's strength is built on "Custom Steel. Custom Service. Creative Solutions." As a niche-oriented integrated producer of value-added, custom steel products, WCI Steel emphasizes customer and technical service. WCI Steel currently produces 185 grades of flat-rolled custom and commodity steel products at its Warren, Ohio facility. WCI Steel focuses on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength, and heavy-gauge galvanized steel and on developing closer, more responsive relationships with customers. Major customers are steel converters, processors, service centers, construction product companies, and to a lesser extent, automobile manufacturers.

Forward-Looking Statements
Information contained in this release, other than historical information, should be considered "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. WCI Steel cautions that there are various important factors that could cause actual events to differ materially from those indicated in the forward-looking statements; accordingly, there can be no assurance that such indicated events will occur. Among such factors are: general economic and business conditions; demand for WCI Steel's products; changes in industry capacity and levels of imports of steel or steel products; industry trends, including product pricing, competition; currency fluctuations; the loss of any significant customer; pricing and availability of raw materials and energy; power outages or curtailments; availability of qualified personnel; ability to train the existing workforce; plant operating performance; major equipment failures; the timing, cost and completion of capital projects; changes in, or the failure of inability to comply with, government regulation, including, without limitation, environmental regulations; the outcome of legal matters and other risk factors.

Click here to view WCI Steel's 2006 supplemental financial information

Except as required by law, WCI Steel does not assume any responsibility to update any forward-looking statements to reflect future developments or events.

WCI Steel, Inc. Contacts:
ANALYSTS: Cynthia B. Bezik, Vice President and CFO, 330-841-8301
MEDIA: Belinda Cavender, 330-841-8214




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