Cleveland-Cliffs Announces Amendment to ISG Pellet Contract

Cleveland-Cliffs Announces Amendment to ISG Pellet Contract 


CLEVELAND, Dec. 30  /PRNewswire-FirstCall/ -- Cleveland-Cliffs Inc (NYSE:CLF)
today announced that it has entered into an amendment to its major Pellet Sale
and Purchase Agreement with International Steel Group Inc., (NYSE:ISG) for
pellet deliveries to ISG Cleveland and ISG Indiana Harbor through 2016.

The Company stated that it has been working with ISG to amend the pellet
contract for several months to mitigate Cliffs' exposure to future steel price
volatility. The amendment significantly raises the base price for pellets, to
better reflect current market rates, and moderates the steel price sharing
provision accordingly. Beginning in 2005 the base pellet price will be equal to
the price under the original agreement as if certain ISG hot band steel prices
equaled $400 per ton. In addition, the hot band steel price threshold at which
Cliffs' pellet price will escalate has been increased to $400 per ton.  Cliffs
will receive approximately 75% of the benefit of steel pricing above $400 under
the amendment as compared to the original agreement.

Commenting on the amendment, John S. Brinzo, Chairman and Chief Executive
Officer, said, "We are very pleased to have reached this mutually beneficial
agreement with ISG. Since entering into the long-term sales agreement with ISG
in 2002, the industry's landscape was changed dramatically. This amendment
essentially updates the pricing mechanisms to better reflect the current
environment. We have successfully decreased our exposure to potential decreases
in hot band steel prices and maintained potential upside."

Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is the largest producer
of iron ore pellets in North America and sells the majority of its pellets to
integrated steel companies in the United States and Canada. The Company
operates six iron ore mines located in Michigan, Minnesota and Eastern Canada.

References in this news release to "Cliffs" and "Company" include subsidiaries
and affiliates as appropriate in the context.

This news release contains predictive statements that are intended to be
"forward-looking" within the safe harbor protections of the Private Securities
Litigation Reform Act of 1995. Although the Company believes that its forward-
looking statements are based on reasonable assumptions, such statements are
subject to risk and uncertainties. Actual results may differ materially from
statements for a variety of factors, such as changes in adjustment factors
affecting base prices for pellets, fluctuations in hot band steel prices,
demand and/or prices for iron ore pellets by North American integrated steel
producers due to changes in steel utilization rates, operational factors,
electric furnace production or imports of semi-finished steel or pig iron
(affecting estimated pellet sales, mine operations, or projected liquidity
requirements); changes in the financial condition of the Company's partners
and/or customers; rejection of major contracts and/or venture agreements by
customers and/or participants under provisions of the U.S. Bankruptcy Code or
similar statutes in other countries; events or circumstances that could impair
or adversely impact the viability of a mine and the carrying value of
associated assets; inability to achieve expected production levels; problems
with productivity, labor disputes, weather conditions, fluctuations in ore
grade, tons mined, changes in cost factors including energy costs, and employee
benefit costs; and the effect of these various risks on the Company's future
cash flows, debt levels, liquidity and financial position.  Reference is made
to the detailed explanation of the many factors and risks that may cause such
predictive statements to turn out differently, set forth in the Company's
Annual Report for 2003, Reports on Form 10-K and Form 10-Q and previous news
releases filed with the Securities and Exchange Commission, which are publicly
available on Cliffs' website. The information contained in this document speaks
as of the date of this news release and may be superseded by subsequent events.

Contacts: Media: [phone] Financial Community: [phone] or (216)
694-5459

News releases and other information on the Company are available on the
Internet at http://www.cleveland-cliffs.com/ . 

DATASOURCE: Cleveland-Cliffs Inc



CONTACT:  Media, [phone], or Financial Community,

[phone], or [phone]



Web site:  http://www.cleveland-cliffs.com/ 

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