Chaparral Steel to be Acquired by Gerdau Ameristeel for $86 per Share

Chaparral Steel Company announced today that it has entered into a definitive agreement to be acquired by Gerdau Ameristeel Corporation for $86.00 per share in cash. The merger agreement was unanimously approved by the Boards of Directors of both companies.

"After an extensive review of all options for the company, Chaparral's Board of Directors has determined that this transaction creates substantial value for our stockholders," stated Tommy A. Valenta, Chaparral's President and Chief Executive Officer. "Over the past few years, our people have worked hard to enhance our operations, improve our competitive position, and transform Chaparral into one of the most profitable steel companies in the world."

Mr. Valenta added, "In addition to delivering significant value to our stockholders Chaparral will be joining one of the largest and most respected steel companies in the world. Gerdau Ameristeel shares similar values with our company, including a focus on profitability, developing a loyal customer base, providing a safe workplace, and a commitment to quality products. As part of this new and larger company, we will have a more diversified product offering that will enhance our ability to better serve both existing and new customers."

Closing of the transaction is subject to the approval of Chaparral's stockholders and other customary closing conditions, including regulatory approvals. The merger is expected to close later this calendar year.

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