Oregon Steel Announces an Agreement for ShawCor Ltd. to Provide Coating Services at its Pipe Mill in Portland, Oregon

Oregon Steel Mills, Inc. (NYSE:OS) today announced that
Oregon Steel has signed an agreement with Bredero Shaw, a division of
ShawCor Ltd., to build a pipe coating facility adjacent to Oregon
Steel's large diameter line pipe mill under construction in Portland,
Oregon.
   The agreement between Bredero Shaw and Oregon Steel contains
provisions whereby Bredero Shaw will supply coating services for
fusion bond epoxy corrosion coatings and internal linings, in exchange
for the exclusive right to provide Oregon Steel with all of its
coating requirements at the new pipe mill, the use of land and
buildings for the coating facility and the provision of pipe handling
services. The coating facility will be installed adjacent to Oregon
Steel's new 60 inch API large diameter line pipe manufacturing mill
that is currently under construction. It is anticipated that the pipe
mill will begin production in July 2006.
   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

   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.