KEYSTONE CONSOLIDATED INDUSTRIES, INC. [LOGO OMITTED]
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PRESS RELEASE
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FOR IMMEDIATE RELEASE CONTACT:
Keystone Consolidated Industries, Inc. Vic Stirnaman
5430 LBJ Freeway, Suite 1740 Director -
Dallas, Texas 75240-2697 Human Resources
(972) 458-0028 (309) 697-7512
KEYSTONE AND INDEPENDENT STEEL WORKERS ALLIANCE ANNOUNCE TENTATIVE
AGREEMENT WITH INDEPENDENT STEEL WORKERS ALLIANCE
PEORIA, ILLINOIS . . . July 16, 2004 . . . Keystone Consolidated
Industries, Inc. (OTCBB: KESNQ) and the Independent Steel Workers Alliance
jointly announce that today they reached a tentative agreement with respect to
the collective bargaining agreement for active union employees at the
Bartonville Plant. The revisions to the collective bargaining agreement must be
approved by the ISWA membership and by the Bankruptcy Court in Milwaukee before
they become effective.
Randy Beck, President of the ISWA, said, "We hope our membership will send
a clear message to the Company's customers that the ISWA intends to keep the
Bartonville Plant open and products delivered on time. Union employees have
worked hard to keep the plant operating efficiently. We will ask our membership
to ratify the modified agreement."
Vic Stirnaman, Director - Human Resources of Keystone, said: "We are
pleased to have reached an agreement with the ISWA leadership. The tentative
agreement is the first major step in formulating a reorganization plan that the
company intends to file with the court soon. If ultimately confirmed, such a
plan will enable a restructuring and emergence from bankruptcy by year's end."
The new tentative agreement provides for concessions as well as new rights
for union employees. Details regarding the new tentative agreement will be
provided in a motion that the Company and the ISWA will jointly file with the
court.
As provided by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company cautions that statements in this
Release relating to matters that are not historical facts are forward-looking
statements that represent management's beliefs and assumptions based on
currently available information. Forward-looking statements can be identified by
the use of words such as "believes," "intends," "may," "should," "could,"
"anticipates," "expected," or comparable terminology, or by discussions of
strategies or trends. Although Keystone believes the expectations reflected in
such forward-looking statements are reasonable, it cannot give any assurances
that these expectations will prove to be correct. Such statements by their
nature involve substantial risks and uncertainties that could significantly
impact expected results, and actual future results could differ materially from
those described in such forward-looking statements. While it is not possible to
identify all factors, Keystone continues to face many risks and uncertainties.
Among the factors that could cause actual future results to differ materially
are the risks and uncertainties discussed in this Release and those described
from time to time in the Company's other filings with the Securities and
Exchange Commission including, but not limited to:
o Future supply and demand for the Company's products (including cyclicality
thereof),
o Customer inventory levels,
o Changes in raw material and other operating costs (such as ferrous scrap
and energy)
o General economic conditions,
o Competitive products and substitute products,
o Changes in customer and competitor strategies,
o The impact of pricing and production decisions,
o The possibility of labor disruptions,
o Environmental matters (such as those requiring emission and discharge
standards for existing and new facilities),
o Government regulations and possible changes therein,
o Significant increases in the cost of providing medical coverage to
employees and retirees,
o The ability to successfully obtain reductions in the Company's operating
costs, including achieving relief from the current provisions of the
Company's collective bargaining agreement with its labor union and certain
retirees,
o The ability of the Company to successfully renegotiate the terms of certain
of its indebtedness,
o The ultimate resolution of pending litigation,
o International trade policies of the United States and certain foreign
countries,
o Any possible future litigation, and
o Other risks and uncertainties as discussed in this Release.
Should one or more of these risks materialize (or the consequences of such
a development worsen), or should the underlying assumptions prove incorrect,
actual results could differ materially from those forecasted or expected.
Keystone disclaims any intention or obligation to update or revise any
forward-looking statement whether as a result of new information, future events
or otherwise.
Keystone Consolidated Industries, Inc. is headquartered in Dallas, Texas.
The company is a leading manufacturer and distributor of fencing and wire
products, wire rod, industrial wire, nails and construction products for the
agricultural, industrial, construction, original equipment markets and the
retail consumer. Keystone's common stock is traded on the OTC Bulletin Board
(Symbol: KESNQ).
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