Questor Teams With Management Group to Purchase Non-Core Subsidiary
of United States Steel Corporation

Southfield, MI (May 28, 2003) Questor Management Company, LLC and Benjamin M. Statler, LLC announced today that PinnOak Resources, LLC, a new company formed by Statler and by Questor Partners Fund II, L.P. and other funds managed by Questor Management Company, has signed a definitive agreement to acquire from United States Steel Corporation and its affiliates two underground coal mines and related assets.  Terms of the transaction were not disclosed. 

The mining operations that are the subject of the transaction are those associated with the Pinnacle No. 50 Mine complex located near Pineville, West Virginia, and the Oak Grove Mine complex located outside Birmingham, Alabama. Most of the coal produced by the mines is purchased by U. S. Steel and third-party customers for use in the coke and steel-making process.  A portion of the coal is sold to the electric utility industry.  At the closing of the transaction, U. S. Steel will enter into a multi-year supply agreement under which U. S. Steel is expected to purchase a significant portion of the annual production output of the two mines. 
"We are delighted that Ben Statler approached us to partner with him in his bid to acquire these coal properties from U. S. Steel," said Michael D. Madden, the principal of Questor Management Company who was involved in the transaction.  "Questor's experience in turning non-core units of larger companies into successful stand-alone businesses makes this a natural transaction for us.  Both U. S. Steel and Questor recognize that Ben Statler's prior success as a senior operating executive in the coal industry assures the smooth separation of these mines from U. S. Steel and enhances their long-term viability as commercial enterprises.  Questor also recognizes that the mines, having operated as a non-core subsidiary of a much larger company, must reduce costs and operate more efficiently in the future in order to justify the substantial capital expenditures required to extend the life of the operations." 
Benjamin Statler, President and Chief Executive Officer of PinnOak Resources, said, "We have assembled a great management team and we look forward to working with the present employees at the mines to create a successful company focused on coal.  Together we will build a company committed to the objective of mining coal safely, efficiently and at a competitive price.  Our success will create the opportunity for PinnOak Resources to grow and expand." 

The closing of the transaction, which is subject to financing and other customary conditions, is expected in late June.

Questor Management Company, LLC, based in Southfield, Michigan, manages the Questor Partners Funds, which have $1.1 billion of committed equity capital.  The Funds' objective is to acquire significant positions in companies that are underperforming or have not met their owners' expectations, but offer the potential for superior returns with the application of appropriate levels of capital and management expertise.