Oregon Steel Mills Announces First Mortgage Note Redempton

Oregon Steel Mills, Inc. (NYSE:OS) announced today that
it has elected to redeem all of its outstanding 10% First Mortgage
Notes ("Notes") due on July 15, 2009, at a price equal to 105% of the
principal amount of the Notes being redeemed, in accordance with the
terms of the Indenture and Notes. The principal amount of Notes
outstanding to third parties as of the date of this press release was
approximately $303 million. The Notes will be redeemed effective July
15, 2006, and interest on the Notes will be paid to that date. In
connection with the redemption of the Notes, Oregon Steel expects to
record a charge of $21.1 million in the third quarter of 2006. The
charge consists of approximately $15.1 million for the Notes call
premium and $6 million for deferred financing costs related to the
original issuance of the Notes.
   Jim Declusin, the Company's President and CEO, stated, "One of our
stated priorities over the past two years has been to reduce debt and
improve our financial liquidity. This action eliminates the expensive
high-yield debt issued in 2002, reduces our net interest expense
dramatically and contributes to our ongoing efforts to strengthen our
financial position."
   The redemption will be funded by a combination of cash on hand and
borrowings under a new 5 year, $175 million revolving credit facility
recently put in place by the Company through General Electric Capital
Corporation.
   A Notice of Full Optional Redemption has been mailed to registered
holders of the Notes by the trustee for the Notes, U.S. Bank National
Association. Questions from bondholders regarding the redemption
process can be directed to U.S. Bank's Bondholder Services at
800-934-6802. This announcement is neither a request nor an offer for
tender of securities of Oregon Steel.

   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; potential equipment
malfunction, and plant construction and repair delays. For more
detailed information, please review the discussion of risks, which may
cause results to differ materially, in our most recently filed Form
10-K, Form 10-Q and other SEC reports.
   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.