THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Steel Dynamics, Inc. (STLD)

4/10/2006 Proxy Information

For the years ended December 31, 2005 and 2004, we sold approximately 431,000 tons and 490,000 tons of our steel products to Heidtman Steel Products, Inc., or Heidtman, for $225.2 million and $259.5 million, representing approximately 10% and 12% of our consolidated net sales for each year, respectively. John C. Bates, a member of our Board of Directors, is the President and Chief Executive Officer of Heidtman and is the beneficial owner of approximately 4.2% of our outstanding common stock. We also have a long-term "off-take" agreement with Heidtman that extends through March 2007, under which Heidtman is obligated to buy, and we are obligated to sell to Heidtman, at least 76,000 tons of our hot band products per quarter, or 336,000 tons annually, and at least 15,000 tons of our cold-rolled products per quarter, or 60,000 tons annually. Pricing to Heidtman is determined by either a market or a spot market pricing formula.

During 2005, we also sold approximately 35 acres of land adjacent to our Flat Roll Division in Butler, Indiana, to Heidtman for $144,000. We utilized the services of an independent appraiser to determine the appropriate value of the transaction.

We believe that the transactions described are on terms no less favorable to us than could be obtained from unaffiliated third parties.

We employ Michael S. Busse as an employee in our sales department in Butler, Indiana. We also utilize the services of Transport Dynamics LLC, principally owned by Chris Busse, as an independent contractor, to provide freight hauling services for finished steel products manufactured by the Company. Keith E. Busse, our President and Chief Executive Officer, is the father of Michael S. Busse and Chris Busse. Each of these transactions involve annual payments of less than $150,000 and all are on terms no less favorable to us than could be obtained from unaffiliated third parties.

4/5/2005 Proxy Information

John C. Bates is the President and Chief Executive Officer and a director of Heidtman Steel Products, Inc., which he joined in 1963, and for which he has served as its President and Chief Executive Officer and a director since 1969. Heidtman Steel is our largest customer for our steel products.

4/5/2004 Proxy Information

John C. Bates is the President and Chief Executive Officer of Heidtman Steel Products, Inc. (steel service center), which he joined in 1963, and for which he has served as its President and Chief Executive Officer since 1969. Heidtman Steel Products, Inc. is the largest customer for manufactured steel products of Steel Dynamics, Inc.

4/23/2003 Proxy Information

Effective in 2003, all of the current members of the three person Compensation Committee meet all applicable "independence" requirements established by the Sarbanes-Oxley Act of 2002 and as set forth in the proposed Nasdaq Listing Standards. During 2002, however, Daniel M. Rifkin, who is the President and Chief Operating Officer of OmniSource Corporation, the supplier of most of the steel scrap we use in the production of new steel, was a member and chair of the previous four person Compensation Committee, and John C. Bates, who is the President and Chief Executive Officer of Heidtman Steel Products, Inc., our largest steel customer, was also a member of that committee. During prior years, however, including 2002, the full Board of Directors considered and approved all compensation matters, and during 2002, the entire Board as well as all six of the independent directors, unanimously approved all 2002 compensation decisions.