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May 15, 2006 — Bayou Steel Corp.’s stockholders voted at a special meeting to adopt the previously announced merger agreement to be acquired by an entity owned by funds over which Black Diamond Capital Management, LLC acts as an investment manager.

Subject to certain adjustments at closing, including an adjustment for working capital, the total per-share purchase price for the Bayou Steel shares is expected to be approximately $75 in cash, assuming a closing in the quarter ending June 2006.

Jerry Pitts, President and CEO of Bayou Steel, noted: "We at Bayou Steel are very pleased that our stockholders have overwhelmingly approved this transaction with Black Diamond and look forward to closing the acquisition as soon as possible."

Subject to satisfactory completion of applicable regulatory reviews and customary closing conditions, the transaction is expected to close in late May or early June of 2006.

Bayou Steel Corp. manufactures light structural and merchant bar products in LaPlace, La., and Harriman, Tenn. The company also operates stocking locations along the inland waterway system near Pittsburgh, Chicago, and Tulsa.

Black Diamond Capital Management is an alternative asset management firm with in excess of $8 billion under management in a combination of private equity, hedge funds and structured vehicles. It was founded in 1995 by its principals, James Zenni and Stephen Deckoff. Its investors are largely comprised of leading institutional investors, including pension funds, endowments and insurance companies. Black Diamond has offices in Lake Forest, Ill., Greenwich, Conn., and London, England.

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