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• EBITDA of $85 per ton exceeds company's expectations
• Diluted EPS of $1.15 for the quarter
• Well-positioned financially for future growth

• EBITDA of $85 per ton exceeds company's expectations
• Diluted EPS of $1.15 for the quarter
• Well-positioned financially for future growth

• EBITDA of $85 per ton exceeds company's expectations
• Diluted EPS of $1.15 for the quarter
• Well-positioned financially for future growth

WARREN, OHIO, November 6, 2006 - WCI Steel, Inc. (OTC: WCIS.PK) announced today net income of $11.8 million for the quarter ending September 30, 2006. EBITDA was $85 per ton, significantly exceeding the company's prior guidance. On May 1, WCI Steel purchased all the assets of the former WCI Steel, Inc. (Old WCI) as part of its plan of reorganization. Revenues for the quarter totaled $237.2 million, 39 percent higher than in the same period last year for Old WCI.

For the quarter, the company reported:

• Shipments of 321,000 tons
• Revenues from product sales of $232.2 million, or $723 per ton
• EBITDA of $27.3 million, or $85 per ton
• Operating income of $22.6 million, or $70 per ton
• Net income of $11.8 million prior to the accrued PIK preferred dividend, or $37 per ton
• Diluted earnings per share of $1.15 for the quarter and $1.57 per share for the five months since May 1

Patrick G. Tatom, president and chief executive officer, said the quarterly results demonstrated that WCI Steel has successfully reorganized and is well-positioned as a strong custom flat-rolled producer. "We are very pleased with our performance to date and appreciate the contributions of our employees and the support of our customers," Tatom said. "Our shipments for the quarter were in line with the prior guidance; however, our EBITDA of $85 per ton substantially exceeded the prior forecasted range of $50 to $60 per ton." Tatom added, "The quarter benefited by good demand in our key markets, a higher-value mix, generally robust prices and solid operations. Our results also reflected the benefits of operational efficiency and cost reduction made possible by the new work systems under our new collective bargaining agreement." Cynthia B. Bezik, chief financial officer, noted, "Our liquidity remains strong. At the end of September, we had $5.8 million of cash on hand and $19.8 million borrowed under the $150 million revolving credit facility. Our borrowings under the revolving credit facility increased by only $4.3 million since June 30, reflecting the seasonal build-up of raw materials. We anticipate that our borrowing under the credit facility will increase to about $45 million at year-end, primarily due to our planned capital spending program and the continuation of normal seasonal build-up of iron ore pellets for the winter."

Capital Expenditures
As previously announced, 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. During the quarter, WCI Steel spent $7.8 million in capital, primarily related to these two projects. On November 27, WCI Steel will decommission one of the three pusher-style furnaces in the hot strip mill to allow construction to commence on the new walking beam furnace early in 2007. Capital spending in the final quarter of the year is currently forecasted at about $15 million.

Outlook
"Distributor inventory positions that reached 3.8 months-on-hand in September, high import levels in recent months and downward adjustments to automotive build schedules will impact our markets throughout the fourth quarter," Tatom said. As a result, WCI Steel currently plans to ship approximately 260,000 tons in the final quarter of 2006, a decrease of 50,000 tons, or about 16 percent, compared with earlier expectations. Calendar year 2006 shipments are anticipated to total 1,269,000 tons. By comparison, Old WCI shipped 1,194,000 tons in calendar year 2005 and 1,108,000 tons in calendar year 2004. Tatom noted that WCI Steel has undertaken a variety of actions in response to a slowing market, including:

• accelerating planned maintenance programs and emphasizing ongoing training efforts related to the new work systems
• cutting front-end production to match the order book
• considering potential outages in finishing operations in November and December
• reducing overtime within the operations and implementing additional spending controls

As a result of lower shipments, reduced pricing and additional planned maintenance, it is currently expected that EBITDA per ton shipped for the fourth quarter will be between $40 and $50 per ton. WCI's preliminary estimate of its steel shipments for 2007 remains at 1,250,000 tons, slightly less than the projected 2006 calendar year level due to production outages related to the capital program. Once the walking beam furnace is operational in 2008, shipments are expected to approach 1.4 million tons. "With a solid financial position, a focus on niche markets and improved efficiencies from our new work systems, WCI Steel is well-positioned to grow and build shareholder value," Tatom said.

Background Information
WCI Steel, Inc., a Delaware corporation, was formed in March, 2006 and had no assets or liabilities until May 1. 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, WCI Steel, the newly formed company, acquired substantially all the assets of Old WCI. On May 1, WCI Steel issued $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 September 30, WCI Steel had distributed 3.8 million shares of common stock and expects to distribute the remainder by the first quarter of 2007.

The 5.0 million shares of preferred stock have a 10 percent "payment-in-kind" (PIK) dividend, payable semi-annually on November 1 and May 1. The Nov. 1, 2006 PIK dividend is payable to shareholders of record as of Sept. 15, 2006. The preferred stock converts into common stock at a 1.2 ratio no later than May 1, 2008. Assuming conversion of the 5.0 million shares of preferred stock as of Sept. 30, 2006 and the 4.0 million shares of common stock, WCI Steel has approximately 10.3 million common shares outstanding on a fully diluted basis.

Click here to view the accompanying quarterly financial statements. Additional financial information on WCI Steel's financial performance and that of Old WCI is available on the company's web-site: www.wcisteel.com. 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 Securities and Exchange Commission 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 September 30 results and the outlook for the balance of the year, at 2 p.m. Eastern Time on Nov. 7, 2006. The conference call will be available on the Internet at www.wcisteel.com, under "Investors" 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 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. 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 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.

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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