1163302--2/24/2010--UNITED_STATES_STEEL

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Risk Factors Concerning the Current Global Recession U. S. Steel and its end-product markets continue to be impacted by the global recession. U. S. Steel is incurring and will continue to incur facility carrying costs when production capacity is temporarily idled and increased costs as we resume production at idled facilities. U. S. Steel may need to substantially increase working capital when market conditions and order levels improve. U. S. Steel may face increased risks of customer and supplier defaults. U. S. Steel s joint ventures and other equity investees are also being affected by the current global recession. Risk Factors Concerning the Steel Industry Steel consumption is highly cyclical, and worldwide overcapacity in the steel industry and the availability of alternative products have resulted in intense competition, which may have an adverse effect on profitability and cash flow, especially during periods of economic weakness. Rapidly growing supply in China and other developing economies may grow faster than real demand in those economies, which may result in additional excess worldwide capacity and falling steel prices. Increased imports of steel products into North America and Europe could negatively affect steel prices and demand levels and reduce our profitability. Limited availability of raw materials and energy may constrain operating levels and reduce profit margins. Environmental compliance and remediation could result in substantially increased capital requirements and operating costs. Greenhouse gas policies could negatively affect our results of operations and cash flows. Risk Factors Concerning U. S. Steel Legacy Obligations Our retiree health care and retiree life insurance plan costs, most of which are unfunded obligations, and our pension plan costs in North America are higher than those of many of our competitors. These plans create a competitive disadvantage and negatively affect our results of operations and cash flows. We have higher environmental remediation costs than our competitors. This creates a competitive disadvantage and negatively affects our results of operations and cash flows. Other Risk Factors Applicable to U. S. Steel Unplanned equipment outages and other unforeseen disruptions may reduce our results of operations. We may be adversely impacted by volatility in prices for raw materials, energy, and steel. Declines in the production levels of our major customers could have an adverse effect on our financial position, results of operations and cash flow. The terms of our indebtedness contain provisions that may limit our flexibility. Rating agencies may downgrade our credit ratings, which would make it more difficult for us to raise capital and would increase our financial costs. Change in control clauses in our financial and labor agreements grant the other parties to those agreements rights to accelerate obligations and to terminate or extend our labor agreements. Our operations expose us to uncertainties and risks in the countries in which we operate, which could negatively affect our results of operations and cash flows. We are subject to significant foreign currency risks, which could negatively impact our profitability and cash flows. Our business requires substantial expenditures for debt service, obligations, capital investment, operating leases and maintenance that we may be unable to fund. U. S. Steel is exposed to uninsured losses. Our collective bargaining agreements may limit our flexibility. We are at risk of labor stoppages. There are risks associated with past acquisitions, as well as any acquisitions we may make in the future. There are risks associated with existing and potential tax law and accounting requirements. We may be subject to litigation, the disposition of which could negatively affect our profitability and cash flow in a particular period. Provisions of Delaware Law, our governing documents and our rights plan may make a takeover of U. S. Steel more difficult. We may suffer employment losses, which could negatively affect our future performance. We may experience difficulties implementing our enterprise resource planning (ERP) system.

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1163302--2/24/2010--UNITED_STATES_STEEL_CORP