WPSC Wheeling-Pittsburgh Corp (MM)

Wheeling-Pittsburgh Corporation (NASDAQ:WPSC), the holding company of Wheeling-Pittsburgh Steel Corporation, today commented on an arbitration proceeding commenced by Herman Strauss, Inc (Strauss) and a lawsuit filed by Metal Management, Inc. (MMI). The arbitration demand filed by Strauss arises out of the termination, in the first quarter of 2007, of three agreements dated April 8, 2004, between Wheeling-Pitt and Strauss relating to the supply and processing of steel scrap by Strauss. That termination arose out of the failure to resolve several issues, including workplace safety practices, billing issues and other significant matters, relating to Strauss� non-performance under those agreements. Wheeling-Pitt�s response to the arbitration demand will be filed shortly at which time Wheeling-Pitt intends to assert substantial claims arising out of Strauss� practices under the agreements. The litigation filed by MMI was in response to Wheeling-Pitt�s June 4 written notification that, due to an unacceptable number of scrap quality deficiencies, it was rejecting and would accept no further deliveries of several grades of steel scrap. The June 4 notice of default was preceded by several weeks of efforts by Wheeling-Pitt to cope with, and mitigate injuries arising out of, these steel scrap deficiencies. Wheeling-Pitt also advised MMI on June 4 that, subject to compliance with specifications, it would continue to accept delivery of, and make timely payment for, the two remaining scrap grades ordered by Wheeling-Pitt. To date, Wheeling-Pitt has made payments of over $25 million to MMI for steel scrap. A significant portion of the claims asserted in MMI�s lawsuit are for scrap that was rejected as out-of-specification as well as amounts that are not yet due under existing contractual terms. Wheeling-Pitt will file a responsive pleading in due course and intends to vigorously assert its claims relative to MMI�s failure to comply with scrap specifications. There can be no assurance as to the outcome of these actions or their effect on the financial condition or results of operation of Wheeling-Pittsburgh Corporation. Forward-Looking Statements Cautionary Notice This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to litigation plans, objectives and expectations. There can be no assurance as to the outcome of these actions or their effect on the financial condition or results of operation of Wheeling-Pittsburgh Corporation. All statements made in this press release that are not historical in nature should be considered forward-looking. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. Readers are referred to the �Item 1A � Risk Factors� section of Wheeling-Pittsburgh�s Annual Report on Form 10-K for the year ended December 31, 2006, and other reports and filings with the SEC, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Additionally, there are risks associated with litigation in general, including the costs and time that must be devoted to litigation, the potential diversion of management's attention that may result from being engaged in litigation, and the possibility of adverse results. The forward-looking statements in this press release speak only as of this date. While Wheeling-Pittsburgh Corporation may elect to update forward-looking statements from time to time, it specifically disclaims any obligation to do so. About Wheeling-Pittsburgh Corporation Wheeling-Pittsburgh is a steel company engaged in the making, processing and fabrication of steel and steel products using both integrated and electric arc furnace technology. The Company manufactures and sells hot-rolled, cold-rolled, galvanized, pre-painted and tin millsheet products. The Company also produces a variety of steel products including roll formed corrugated roofing, roof deck, floor deck, bridge form and other products used primarily by the construction, highway and agricultural markets.