Oregon Steel Announces Receipt of 510,000 Ton Large Diameter Pipe Order

Oregon Steel Mills, Inc. (NYSE:OS) announced today that
it was awarded a contract to supply large diameter pipe for the
Rockies Express Pipeline LLC Project ("REX"), a new 1,323 mile natural
gas pipeline which will originate near Cheyenne, Wyoming, and extend
into eastern Ohio ("Project"). Construction of the pipeline is
anticipated to begin in May of 2007. The contract is for approximately
510,000 tons of 42 inch X-80 grade large diameter line pipe ("Pipe").
In addition to the firm order, REX also has an option, through March
14, 2006, to purchase an additional 350,000 tons of Pipe from Oregon
Steel.
   Oregon Steel is expected to begin production of the Pipe for the
Project beginning in the fourth quarter of 2006 at Oregon Steel's pipe
mills located in Camrose, Alberta, Canada, and Portland, Oregon. With
the receipt of this order, Oregon Steel anticipates that its large
diameter pipe mills, as currently configured, will be near their rated
capacities into the fourth quarter of 2007.
   Oregon Steel Mills, Inc. is organized into two divisions. The
Oregon Steel Division produces steel plate, coil, welded pipe and
structural tubing from plants located in Portland, Oregon and Camrose,
Alberta, Canada. The Rocky Mountain Steel Mills Division, located in
Pueblo, Colorado, produces steel rail, rod, bar, and tubular products.

   Forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements are subject to risks and
uncertainties and actual results could differ materially from those
projected. Such risks and uncertainties include, but are not limited
to, general business and economic conditions; competitive products and
pricing, as well as fluctuations in demand; cost and availability of
raw materials; potential equipment malfunction; contract
cancellations; and plant construction and repair delays. For more
detailed information, please review the discussion of risks, which may
cause results to differ materially, in the Company's most recently
filed Form 10-K, Form 10-Q and other SEC reports.
   These forward-looking statements should not be relied upon as
representing the Company's views as of any subsequent date and the
Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date they are made.