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WCI STEEL, INC. ANNOUNCES AMENDMENT OF ITS CREDIT AGREEMENT WITH HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD. TO PROVIDE ADDITIONAL FINANCIAL FLEXIBILITY

WARREN, OHIO, December 27, 2007 - WCI Steel, Inc. (OTC: WCIS.PK) announced today that the company had entered into an agreement to modify its existing $150 million credit facility with Harbinger Capital Partners Master Fund I, Ltd., replacing the current bank group.

Leonard M. Anthony, WCI Steel president and chief executive officer, said: “We appreciate the support of our largest shareholder to improve the financial position of WCI Steel. This amendment provides the company with substantial additional liquidity and the necessary flexibility as we return to full operations after the November fire at the blast furnace hydraulic control rooms and rebuild our working capital.”

Anthony added: “We are also pleased to report that the new walking beam furnace in the hot strip mill is operational. Although we still have challenges ahead of us, I am confident that with the increased liquidity, the support of Harbinger and working together with our customers, suppliers and employees, we can successfully implement solutions to the challenges facing WCI Steel. With the assistance provided by the amended financing, we will be able to ensure a brighter future for WCI Steel.”

With this amendment, certain advance limitations under the agreement will be waived until July 31, 2008, and the company will be able to fully utilize its current $150 million facility in the near-term. The initial borrowing under the facility will carry an interest rate of LIBOR plus 5.0 percent. The interest rate on each borrowing in excess of collateral valuations equals 15 percent, and subsequent to March 31, 2008, the interest rate on each advance in excess of collateral valuations increases at the rate of 0.2 percent each week.

In connection with Harbinger’s purchase of interests of the bank group and the amendment to the credit agreement, the company issued to Harbinger two-year warrants to purchase common stock equal to 25 percent of the company’s common stock on an as-converted basis, after giving effect to the issuance and exercise of the warrants, at an exercise price of $0.01 per share. If the credit facility is not repaid by April 1, 2008, the company will pay Harbinger an extension fee of 75 basis points on the commitments under the facility. If the credit facility is not repaid by May 5, 2008, the company will pay Harbinger an additional extension fee in the form of a two-year warrant to purchase additional shares of common stock, at an exercise price of $0.01 per share. This warrant will be exercisable for a number of shares such that all of the warrants in the aggregate would represent the right to purchase 40 percent of the company’s common stock on an as-converted basis after giving effect to the issuance and exercise of the warrants. The warrants will be transferable and have customary registration rights. Under no circumstances will the warrants be exercisable to the extent that their exercisability would result in a change of control under the indenture governing the company’s 8 percent senior secured notes due 2016. Certain holders of the company’s preferred shares will be given the right to participate as lenders under the credit agreement and to receive a portion of the fees payable to Harbinger. Assuming that all warrants are issued and exercised, the non-Harbinger common shareholders’ ownership will decline from 29.3 percent to 7.7 percent of the company.

The company expects to post on its website additional information regarding this transaction by mid-January.

About WCI Steel, Inc.
WCI Steel’s strength is built on “Custom Steel. Custom Service. Creative Solutions.” As an integrated producer of value-added, custom steel products serving niche markets, 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, focusing 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; 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 and completion of capital projects; changes in, or the failure or inability to comply with, government regulation, including, without limitation, environmental regulations; the outcome of legal matters and other risk factors. Except as required by law, WCI Steel does not assume any responsibility to update any forward-looking statements to reflect future developments or events.