STEEL TECHNOLOGIES INC.



      Pursuant to the  applicable  provisions of the Kentucky  Business

Corporation  Act,  Steel  Technologies  Inc.,  a Kentucky  corporation,

hereby  adopts  the  following  as  its  Second  Restated  Articles  of



      The name of the Corporation is STEEL TECHNOLOGIES INC.


      The purpose or purposes  for which the  Corporation  is organized


      1.   To  engage  in  any  lawful  act  or  activity,   for  which

corporations  may be formed,  and to  exercise  any and all powers that

corporations  have and may have now or  hereafter  exercise  under  the

Kentucky   Business   Corporation  Act,  whether  or  not  specifically

enumerated herein.

      2.   To engage in, conduct,  and carry on, either as principal or

agent, and upon commission or upon its own account,  or otherwise,  the

business of manufacturing,  producing,  preparing, buying, selling, and

otherwise  dealing in and with  crucible,  tool,  high speed,  and high

grade  steel  of  all  kinds,  for  the  manufacture  of all  kinds  of

machinery,   machine   tools,   and  tool  making   machinery   of  all

descriptions,  and to engage  generally in the  purchase,  manufacture,

and sale of steel and steel products.

      3.   To  sell,  convey,   mortgage,   pledge,  lease,   exchange,

transfer and  otherwise  dispose of all or any part of its property and


      4.   To act as agent, broker or  attorney-in-fact  for others for

any purpose whatsoever.

      5.   To purchase,  take,  receive,  subscribe  for and  otherwise

acquire, own, hold, vote, use, employ, sell, mortgage,  discount,  lend

upon,  pledge,  hypothecate,  and otherwise dispose of, use and deal in

and with,  shares,  and other interests in, and promissory notes, bills

of  exchange,  trade  acceptances  and other  obligations  of itself or

other  corporations   (whether  domestic  or  foreign),   associations,

partnerships  or  individuals,  and direct or indirect  obligations  of

the  United  States  or of  any  other  government,  state,  territory,

governmental    district   or    municipality,    or   a   governmental


      6.   To make  contracts  and  guarantees  and incur  liabilities,

borrow  money  at  such  rates  of  interests  as the  Corporation  may

determine,  issue its  notes,  bonds and other  obligations  and secure

them by  mortgage or pledge of all or any of its  property,  franchises

and  income,  and to issue  its  notes,  bonds or  other  evidences  of

indebtedness  convertible  into  common  or  preferred  stock  or other

securities of the Corporation.


      7.   To  purchase  or  otherwise  acquire,  hold,  sell,  pledge,

transfer  or  otherwise  dispose  of,  and to  re-issue  or cancel  the

shares  of  its  own  capital   stock  or  any   securities   or  other

obligations  of the  Corporation  in the manner and to the full  extent

now  or  hereafter  permitted  by  the  laws  of  the  Commonwealth  of


      8.   To  pay  pensions  and  establish  pension  plans,   pension

trusts,  profit sharing plans,  stock bonus plans,  stock option plans,

and other  incentive  plans for any or all of its  directors,  officers

and employees.

      9.   To  make   donations   for  the  public   welfare   and  for

charitable,  scientific  or  educational  purposes  and  in  aid of the

United States government.

      10.  To  lend  its  funds  or  credit  from  time to time to such

extent,   to   such   persons,   firms,   associations,   corporations,

governments,  or  subdivisions  thereof,  and on such terms and on such

security,  if any, or without  security,  as the Board of  Directors of

the Corporation may determine and as may be lawful.

      11.  To  conduct  its  business,  carry on its  operations,  have

offices and  exercise  its  corporate  powers in any state,  territory,

district  and  possession  of the  United  States  and  in any  foreign


      12.  To  be  a  promoter,   partner,   limited  partner,  member,

associate or manager of any  partnership,  limited  partnership,  joint

venture,  trust or other enterprise,  and to do all things necessary or

proper in connection therewith as a natural person might or could do.

      13.  To  acquire,  in  whole or in part,  the  assets,  property,

rights and goodwill of any  corporation,  association,  partnership  or

individual  and to  assume  and  agree to pay the  whole or any part of

the liabilities and obligations of the transferor.

      14.  To  such  extent  as  a  corporation   organized  under  the

Kentucky  Business  Corporation  Act or the Kentucky  Revised  Statutes

may now or  hereafter  lawfully  do, and either as  principal or agent,

and either alone or in  connection  with other  corporations,  firms or

individuals, to do all and everything necessary,  suitable,  convenient

or  proper  for,  or  in   connection   with,   or  incident   to,  the

accomplishment  of any of the  purposes,  or the  attainment of any one

or more of the  objects  herein  enumerate,  or  designed  directly  or

indirectly  to  promote  the  interests  of  the  Corporation,   or  to

enhance the value of its  properties;  and in general to do any and all

things and exercise any and all powers,  rights and privileges  which a

corporation  may now or  hereafter  be  organized to do, or to exercise

under  the  Kentucky  Business   Corporation  Act  or  under  any  laws

amendatory thereof,  supplemental  thereto,  or substituted  therefore;

and to do any or all of the  things  hereinabove  set forth to the same

extent as natural persons might or could do.

      The foregoing  clauses  shall be construed as powers,  as well as

objects and purposes,  and the matters  expressed in each clause shall,

unless herein otherwise  expressly  provided,  be in no ways limited by

reference to, or inference  from,  the terms of any other  clause,  but

shall be regarded as  independent  objects,  purposes  and powers,  and

the enumeration of specific  objects,  purposes and powers shall not be

construed  to limit or  restrict  in any manner the  meaning of general

terms  or  the  general  powers  of  the  Corporation;  nor  shall  the

expression  of one thing be deemed to exclude  another  not  expressed,

although it be of like nature.



      The period of duration of the Corporation is perpetual.


      The  aggregate  number  of  shares  of  capital  stock  which the

Corporation  shall  have  authority  to issue is  Fifty  Million,  Five

Hundred Thousand  (50,500,000)  shares  consisting of 50,000,000 shares

of Common  Stock and 500,000  shares of  Preferred  Stock;  all of said

shares  are to be  without  par  value.  Holders  of shares of  capital

stock of the  Corporation  shall have no  pre-emptive  right to acquire

unissued  or  treasury  shares  or  securities  convertible  into  such

shares, or carrying a right to subscribe to such shares.

      The   Common   Stock   shall  be   without   distinction   as  to

designations,   preferences,   limitations  or  relative  rights.  Each

outstanding  share of Common  Stock  shall be  entitled  to one vote on

each matter submitted to a vote at a meeting of shareholders.

      The Board of Directors  of the  Corporation  is expressly  vested

with  the  authority  by  resolution  to  divide  any  or  all  of  the

Preferred  Stock into series and fix and determine the relative  rights

and  preferences  of the  shares of any  series so  established  and to

change  shares of one  series  that have been  redeemed  or  reacquired

into  shares of another  series.  All shares of  Preferred  Stock shall

be  identical   except  as  to  the  following   relative   rights  and

preferences  as to which  there may be  variations  between  difference


(a)   The dividend rate on the shares of such series,  dividend payment

                dates,  whether  such  dividends  shall be  cumulative,

                and,  if  cumulative,  the  date or  dates  from  which

                dividends shall accumulate;

(b)   Whether or not the  shares of such  series  shall be  redeemable,

                and, if  redeemable,  the  redemption  prices which the

                shares of such  series  shall be  entitled  to  receive

                upon the redemption thereof;

(c)   The  preferences,  if any,  and the  amounts  thereof,  which the

                shares of such  series  shall be  entitled  to  receive

                upon the voluntary and  involuntary  dissolution of, or

                upon  any   distribution   of  the   assets   of,   the


(d)   Whether or not the shares of such series  shall be subject to the

                operation  of  retirement  and, if such  retirement  or

                sinking  fund  or  funds  be  established,  the  annual

                amount  thereof and the terms and  provisions  relative

                to the operation thereof;

(e)   Whether or not the  shares of such  series  shall be  convertible

                into, or  exchangeable  for,  shares of any other class

                or  classes  of  stock  of  the   Corporation  and  the

                conversion  price or  prices or ration or ratios or the

                rate or rates at which such exchange may be made,  with

                such  adjustments,  if any,  as  shall  be  stated  and

                expressed   or   provided   in   such   resolution   or


(f)   The voting power, if any, of the shares of such series; and

(g)   Such other  special  rights and  protective  provisions as to the

                board of directors may seem advisable.


      All Preferred Stock of the  Corporation  which shall be redeemed,

purchased,  converted,  exchanged  or retired  shall have the status of

authorized  but  unissued  shares,  and such  shares may be reissued by

resolution  of the  Board  of  Directors  with  such  new an  different

relative  rights and  preferences set forth in (a) through (g) above as

the Board of Directors by resolution or resolutions may determine.

      Of the 500,000  shares of Preferred  Stock  authorized by Article

IV,  200,000  shall be  designated  Series A 1998 Junior  Participating

Preferred  Stock  (hereinafter  called this  "Series").  Such number of

shares may be  increased or  decreased  by  resolution  of the Board of

Directors;  provided,  that no  decrease  shall  reduce  the  number of

shares  then  outstanding  plus  the  number  of  shares  reserved  for

issuance upon the exercise of outstanding  options,  rights or warrants

or upon the  conversion  of any  outstanding  securities  issued by the

Corporation convertible into shares of this Series.

      Dividends with respect to this Series shall be as follows:

      (1)  Subject to the prior and  superior  rights of the holders of

any shares of any other  series of  Preferred  Stock or other  class of

capital  stock of the  Corporation  ranking  prior and  superior to the

shares of this  Series  with  respect  to  dividends,  the  holders  of

shares  of this  Series  shall  be  entitled  to  receive,  when and as

declared by the Board of Directors out of funds  legally  available for

the  purpose,  quarterly  dividends  payable in cash on March 31,  June

30,  September  30 and  December  31 of each year (each such date being

referred  to  herein  as  a   "Quarterly   Dividend   Payment   Date"),

commencing  on the first  Quarterly  Dividend  Payment  Date  after the

first  issuance of a share or fraction  of a share of this  Series,  in

an  amount  per  share  (rounded  to the  nearest  cent)  equal  to the

greater of (A) $1.00 or (B)  subject to the  provision  for  adjustment

hereinafter  set forth,  100 times the  aggregate  per share  amount of

all cash  dividends,  and 100 times  the  aggregate  per  share  amount

(payable  in kind) of all  non-cash  dividends  or other  distributions

other  than  a  dividend  payable  in  shares  of  Common  Stock  or  a

subdivision   of  the   outstanding   shares   of   Common   Stock  (by

reclassification  or  otherwise),  declared on the Common  Stock of the

Corporation  (the  "Common  Stock")  since  the  immediately  preceding

Quarterly  Dividend  Payment  Date,  or,  with  respect  to  the  first

Quarterly  Dividend  Payment  Date,  since  the first  issuance  of any

share  or  fraction  of a share  of  this  Series.  If the  Corporation

shall at any  time  after  April  24,  1998  (the  "Rights  Declaration

Date") (i) declare any  dividend on Common  Stock  payable in shares of

Common Stock,  (ii) subdivide the  outstanding  Common Stock,  or (iii)

combine the  outstanding  Common Stock into a smaller number of shares,

then in each such case the  amount to which  holders  of shares of this

Series were  entitled  immediately  before such event under  clause (B)

of the  preceding  sentence  shall  be  adjusted  by  multiplying  such

amount by a  fraction  the  numerator  of which is the number of shares

of  Common  Stock  outstanding  immediately  after  such  event and the

denominator  of which is the  number of shares  of  Common  Stock  that

were  outstanding   immediately  before  such  event  (the  "Adjustment





      (2)  The Corporation  shall declare a dividend or distribution on

this Series as provided in clause (A) of the  preceding  paragraph  (1)

immediately  after  it  declares  a  dividend  or  distribution  on the

Common  Stock  (other  than a  dividend  payable  in  shares  of Common

Stock);  provided that, in the event no dividend or distribution  shall

have been  declared on the Common Stock  during the period  between any

Quarterly  Dividend  Payment  Date  and the next  subsequent  Quarterly

Dividend  Payment  Date,  a dividend  of $1.00 per share on this Series

shall  nevertheless  be payable on such subsequent  Quarterly  Dividend

Payment Date.

      (3)  Dividends  shall  begin  to  accrue  and  be  cumulative  on

outstanding  shares of this Series from the Quarterly  Dividend Payment

Date next  preceding  the date of issue of such  shares of this  Series

unless the date of issue of such  shares is before the record  date for

the first Quarterly  Dividend  Payment Date, in which case dividends on

such  shares  shall  begin  to  accrue  from  the date of issue of such

shares,  or unless the date of issue is a  Quarterly  Dividend  Payment

Date or is a date  after  the  record  date  for the  determination  of

holders  of shares  of this  Series  entitled  to  receive a  quarterly

dividend and before such  Quarterly  Dividend  Payment  Date, in either

of  which  events  such   dividends   shall  begin  to  accrue  and  be

cumulative  from such  Quarterly  Dividend  Payment  Date.  Accrued but

unpaid  dividends  shall  not  bear  interest.  Dividends  paid  on the

shares of this Series in an amount  less than the total  amount of such

dividends  at the time  accrued  and  payable on such  shares  shall be

allocated pro rata on a  share-by-share  basis among all such shares at

the time  outstanding.  The Board of  Directors  may fix a record  date

for the  determination  of holders of shares of this Series entitled to

receive payment of a dividend or distribution  declared thereon,  which

record  date  shall be no more than 30 days  before  the date fixed for

the payment thereof.

      (4)  No full  dividends  shall be  declared  or paid or set apart

for  payment  on the  Preferred  Stock  of any  series  ranking,  as to

dividends,  on a parity  with or junior to this  Series  for any period

unless full  cumulative  dividends have been or  contemporaneously  are

declared  and a sum  sufficient  for the payment  thereof set apart for

such  payment  on  this  Series  for  all  dividend   payment   periods

terminating   on  or  prior  to  the  date  of  payment  of  such  full

cumulative  dividends.   When  dividends  are  not  paid  in  full,  as

aforesaid,  upon the  shares of this  Series  and any  other  Preferred

Stock  ranking  on a parity  as to  dividends  with  this  Series,  all

dividends  declared upon shares of this Series and any other  Preferred

Stock  ranking on a parity as to  dividends  with this Series  shall be

declared  pro rata so that the amount of  dividends  declared per share

on this Series and such other  Preferred  Stock shall in all cases bear

to each other the same ratio that  accrued  dividends  per share on the

shares of this  Series  and such  other  Preferred  Stock  bear to each

other.  Holders of shares of this  Series  shall not be entitled to any

dividends,  whether  payable in cash,  property or stock,  in excess of

full  cumulative  dividends,  as herein  provided,  on this Series.  No

interest,  or sum of money in lieu of  interest,  shall be  payable  in

respect of any  dividend  payment or  payments  on this Series that may

be in arrears.




      (5)  So long as any  shares of this  Series are  outstanding,  no

dividend  (other than a dividend in Common  Stock or in any other stock

ranking  junior to this  Series as to  dividends  and upon  liquidation

and other than as provided in this  Article)  shall be declared or paid

or set aside for  payment or other  distribution  declared or made upon

the  Common  Stock or upon any other  stock  ranking  junior to or on a

parity  with  this  Series as to  dividends  or upon  liquidation,  nor

shall any Common  Stock or any other stock of the  Corporation  ranking

junior to or on a parity  with  this  Series  as to  dividends  or upon

liquidation  be  redeemed,  purchased  or  otherwise  acquired  for any

consideration  (or  any  moneys  be paid  to or  made  available  for a

sinking  fund for the  redemption  of any shares of any such  stock) by

the  Corporation  (except by  conversion  into or exchange for stock of

the  Corporation  ranking  junior to this  Series as to  dividends  and

upon liquidation)  unless, in each case, the full cumulative  dividends

on all  outstanding  shares of this Series shall have been paid for all

past dividend payment periods.

      The  holders of shares of this  Series  shall not have any rights

to convert  such shares into or exchange  such shares for shares of any

other  class or classes or of any other  series of any class or classes

of capital stock of the Corporation.

      The  holders of shares of this  Series  shall have the  following

voting rights:

(A)  Each share of this Series shall entitle the holder thereof to a

                                          number of votes equal to 100

                                          multiplied by the Adjustment

                                          Ratio on all matters

                                          submitted to a vote of the

                                          shareholders of the


           (B)   Except   as   otherwise   required   by   law  or  the

Corporation's  Articles  of  Incorporation,  holders  of shares of this

Series  and the  holders  of  shares  of  Common  Stock  and any  other

capital stock of the  Corporation  having  general  voting rights shall

vote  together as one voting  group on all matters  submitted to a vote

of shareholders of the Corporation.

           (C)   Except   as   otherwise   required   by   law  or  the

Corporation's  Articles  of  Incorporation,  holders  of shares of this

Series  shall have no special  voting  rights and their  consent  shall

not be  required  (except  to the  extent  they  are  entitled  to vote

with  holders  of Common  Stock as set forth  herein)  for  taking  any

corporate action.

      Upon the dissolution,  liquidation  (voluntary or otherwise),  or

winding  up of the  Corporation,  the  holders  of the  shares  of this

Series  shall  be  entitled  to  receive  out  of  the  assets  of  the

Corporation,  before any payment or  distribution  shall be made on the

Common  Stock,  or on any other class of stock  ranking  junior to this

Series upon  liquidation,  the amount of $100.00 per share,  plus a sum

equal  to all  dividends  (whether  or not  declared)  on  such  shares

accrued  and  unpaid  thereon  to the date of final  distribution  (the

"Liquidation  Preference").  Following  the  payment of the full amount

of the Liquidation  Preference,  no additional  distributions  shall be

made to the holders of shares of this  Series  unless,  prior  thereto,

the  holders of shares of Common  Stock  shall have  received an amount

per share (the "Common  Adjustment")  equal to the quotient obtained by

dividing   (i)   the   Liquidation   Preference   by   (ii)   100   (as

appropriately  adjusted  as set forth in this  Article to reflect  such

events as stock  splits,  stock  dividends and  recapitalizations  with

respect  to  the  Common  Stock)  (such  number  in  clause  (ii),  the

"Adjustment  Number").  Following  the  payment  of the full  amount of

the  Liquidation  Preference  and the Common  Adjustment  in respect of

all  outstanding  shares of this  Series  and  shares of Common  Stock,

respectively,  holders  of this  Series  and  holders  of Common  Stock

shall receive their  ratable and  proportionate  share of the remaining

assets to be  distributed  in the ratio of the  Adjustment  Number to 1

with respect to such Preferred  Stock and Common Stock,  on a per share

basis, respectively.




      If  the   Corporation   shall  at  any  time   after  the  Rights

Declaration  Date (i) declare any dividend on Common  Stock  payable in

shares of Common Stock,  (ii) subdivide the  outstanding  Common Stock,

or (iii)  combine the  outstanding  Common Stock into a smaller  number

of  shares,  then in each  such  case the  Adjustment  Number in effect

immediately  before such event shall be  adjusted by  multiplying  such

Adjustment  Number by a fraction  the  numerator of which is the number

of shares of Common  Stock  outstanding  immediately  after  such event

and the  denominator  of which is the number of shares of Common  Stock

that      were      outstanding       immediately      before      such


      The sale,  conveyance,  exchange or transfer (for cash, shares of

stock,  securities or other  consideration) of all or substantially all

the  property  and  assets  of  the  Corporation   shall  be  deemed  a

voluntary  dissolution,  liquidation  or winding up of the  Corporation

for the purposes of this Article,  but the merger or  consolidation  of

the  Corporation  into or with  another  corporation  or the  merger or

consolidation  of any other  corporation  into or with the Corporation,

shall not be deemed to be a  dissolution,  liquidation  or winding  up,

voluntarily    or    involuntarily,    for   the   purposes   of   this


      If the assets of the  Corporation  available for  distribution to

the   holders  of  shares  of  this   Series   upon  any   dissolution,

liquidation  or winding up of the  Corporation,  whether  voluntary  or

involuntary,  shall  be  insufficient  to pay in full  the  Liquidation

Preference,  no such  distribution  shall  be made  on  account  of any

shares of any other  class or series of  Preferred  Stock  ranking on a

parity  with  the  shares  of  this   Series  upon  such   dissolution,

liquidation  or winding up unless  proportionate  distributive  amounts

shall be paid on  account  of the shares of this  Series,  ratably,  in

proportion to the full  distributable  amounts for which holders of all

such parity shares are  respectively  entitled  upon such  dissolution,

liquidation  or  winding  up.  If,  however,  there are not  sufficient

assets  available to permit  payment in full of the Common  Adjustment,

then  such  remaining  assets  shall  be  distributed  ratably  to  the

holders of Common Stock.

      The shares of this Series shall not be redeemable.

      Any stock of any class or  classes  of the  Corporation  shall be

deemed to rank:

           (A)  prior  to the  shares  of  this  Series,  either  as to

dividends  or  upon  liquidation,  if the  holders  of  such  class  or

classes  shall be entitled to the  receipt of  dividends  or of amounts

distributable  upon  dissolution,  liquidation  or  winding  up of  the

Corporation,  as the case may be,  in  preference  or  priority  to the

holders of shares of this Series;

           (B) on a parity  with  shares of this  Series,  either as to

dividends  or upon  liquidation,  whether  or not the  dividend  rates,

dividend  payment dates or redemption or  liquidation  prices per share

or sinking fund  provisions,  if any, be  different  from those of this

Series,  if the  holders of such stock shall be entitled to the receipt

of   dividends   or  of   amounts   distributable   upon   dissolution,

liquidation  or winding up of the  Corporation,  as the case may be, in

proportion to their  respective  dividend rates or liquidation  prices,

without  preference  or  priority,  one over the other,  as between the

holders of such stock and the holders of shares of this Series; and

           (C) junior to shares of this Series,  either as to dividends

or upon  liquidation,  if the holders of shares of this Series shall be

entitled  to receipt of  dividends  or of  amounts  distributable  upon

dissolution,  liquidation  or  winding  up of the  Corporation,  as the

case may be, in  preference  or  priority  to the  holders of shares of

such class or classes.





      The business and affairs of the Corporation  shall be managed and

conducted  by or under the  direction  of the board of  directors.  The

number  of   directors   of  the   Corporation   shall  be  fixed  from

time-to-time  by or in the  manner  provided  in the  bylaws,  but  the

number  thereof  shall  never be less  than  nine  (9).  The  directors

shall be divided into three classes,  each class to consist,  as nearly

as may be, of  one-third of the number of  directors  constituting  the

whole  board.  The term of  office of those of the  first  class  shall

expire at the annual  meeting of  shareholders  to be held in 1991. The

term of office of the second class shall  expire at the annual  meeting

of  shareholders  to be held in 1992.  The term of  office of the third

class shall  expire at the annual  meeting of  shareholders  to be held

in  1993.  At  each  annual  meeting  of  shareholders  following  such

initial  classification  and  election,  directors  elected  to succeed

those  directors  whose terms have expired  shall be elected for a term

of  office  to  expire  at  the  third  succeeding  annual  meeting  of

shareholders   following  their   election.   Each  director  shall  be

entitled  to serve for the term for which he was  elected  or until his

successor shall be elected and qualified, whichever period is longer.

      The corporation may make contracts or transact  business with one

or more of its directors,  officers or  stockholders,  or with any firm

with  which one or more of them are  members,  or with any  corporation

or  association  in which  any of them is a  stockholder,  director  or

officer,  and such contract or transaction  shall not be invalidated or

affected by the fact that such director,  officer or  stockholder  has,

or may have,  an interest  therein  which is or might be adverse to the

interests  of the  Corporation,  even though the vote of the  director,

officer  or   stockholder   having  such  adverse   interest  shall  be

necessary  to  obligate   the   Corporation   upon  such   contract  or

transaction;  and no  director,  officer  or  stockholder  having  such

adverse  interest  shall  be  liable  to  the  Corporation  or  to  any

stockholder  or  creditor  thereof,  or to  any  person  for  any  loss

incurred  by it, or them,  under or by reason of, any such  contract or

transaction;  nor shall any such  director,  officer or  stockholder be

accountable  for  any  gain  or  profit  realized  thereon;   PROVIDED,

HOWEVER,  that such contract or transaction  shall,  at the time it was

entered  into,  have been  reasonable  one to be entered into and shall

have been upon the terms that, at that time, were fair.




      Any contract,  transaction  or act of the  Corporation  or of the

directors  which  shall be  ratified  by a majority  of a quorum of the

stockholders,  then  entitled  to vote at any annual  meeting or at any

special  meeting  called for such purpose  shall,  insofar as permitted

by law  and  by  these  Articles  of  Incorporation,  be as  valid  and

binding as those ratified by every stockholder of the Corporation.

      The  Board of  Directors  of the  Corporation  may,  from time to

time,  distribute  to its  stockholders  out of capital  surplus of the

Corporation a portion of its assets in cash or property.

      Anything  contained  in these  Articles of  Incorporation  to the

contrary   notwithstanding   (and   notwithstanding   that   a   lesser

percentage  may be  specified or  permitted  by law),  the  affirmative

vote of the holders of at least  66-2/3% of the voting  power of all of

the  then  outstanding  shares  of the  Corporation  entitled  to  vote

generally in the  election of  directors,  voting  together as a single

class,  shall be required to alter,  amend or repeal any  provision  of

this Article V.


      The  corporation  shall,  to  the  fullest  extent  permitted  by

Kentucky law,  indemnify any  director,  officer,  employee or agent of

the  Corporation  from and  against  any and all  reasonable  costs and

expense  (including,  but not  limited  to,  attorneys'  fees)  and any

liabilities   (including,   but  not  limited  to,  judgments,   fines,

penalties  and  reasonable  settlements)  paid by or on  behalf  of, or

imposed  against,  such  person  in  connection  with  any  threatened,

pending  or  completed  claim,  action,  suit  or  proceeding,  whether

civil,  administrative,  investigative  or other  (including any appeal

relating  thereto),  whether  formal or  informal,  and whether made or

brought by or in the right of the  Corporation  or otherwise,  in which

such person is, was or at any time  becomes a party or  witness,  or is

threatened to be made a party or witness,  or  otherwise,  by reason of

the fact that such  person is, was or at any time  becomes a  director,

officer,   employee   or  agent   of  the   Corporation   or,   at  the

Corporation's request, a director,  officer, partner, trustee, employee

or agent of another  corporation,  partnership,  joint venture,  trust,

employee benefit plan or other enterprise.

      The  indemnification  authorized  by this Article VI shall not be

exclusive of any other right of  indemnification  which any such person

may have or hereafter  acquire  under any  provision of these  Articles

or the Bylaws of the  Corporation,  agreement,  vote of shareholders or

disinterested  directors or otherwise.  The  corporation  may take such

steps  as may be  deemed  appropriate  by the  board  of  directors  to

provide  and secure  indemnification  between  the  Corporation  to any

such  person,   including,   without   limitation,   the  execution  of

agreements for  indemnification  between the Corporation and individual

directors,  officers,  employees or agents which may provide  rights to

indemnification  which are  broader  or  otherwise  different  than the

rights authorized by this Article.





                         (Formerly Article X)


      (1)  No director of the  Corporation  shall be personally  liable

to the  Corporation or its  shareholders  for monetary  damages for any

breach of his or her duties as a  director,  except for  liability  (i)

for  any  transaction  in  which  the  director's   personal  financial

interested  is  in  conflict  with  the  financial   interests  of  the

Corporation  or its  shareholders;  (ii) for acts or  omissions  not in

good  faith or which  involve  intentional  misconduct  or are known to

the  director  to be a  violation  of law;  (iii)  for any  vote for or

assent  to an  unlawful  distribution  to  shareholders  as  prohibited

under  KRS  271B.8-330;  or (iv) for any  transaction  from  which  the

director derived an improper personal benefit.

      (2)  If the Kentucky  Business  Corporation  Act is amended after

approval by the  shareholders  of this Article to  authorize  corporate

action  further  eliminating  or limiting  the  personal  liability  of

directors,  then the liability of a director of the  Corporation  shall

be  eliminated  or  limited  to the  fullest  extent  permitted  by the

Kentucky  Business  Corporation  Act,  as so  amended,  and without the

necessity for further shareholder action in respect thereof.

      (3)  Any  repeal  or   modification   of  this   Article  by  the

shareholders  of the Corporation  shall not adversely  affect any right

or  protection  of a director of the  Corporation  hereunder in respect

of any act or  omission  occurring  prior to the time of such repeal or


      The  foregoing   Second   Restated   Articles  of   Incorporation

correctly set forth,  without change,  the corresponding  provisions of

the Restated  Articles of  Incorporation,  as previously  amended,  and

supersede  the  original  Articles of  Incorporation,  and the Restated

Articles   of   Incorporation.   This  Second   Restated   Articles  of

Incorporation  was approved by  resolution of the Board of Directors on

April 28, 2000.

      IN  TESTIMONY   WHEREOF,   these  Second  Restated   Articles  of

Incorporation   have  been  executed  on  behalf  of  the   undersigned

corporation,  by and through its duly authorized  officers,  this _____

day of April, 2000.


                          STEEL TECHNOLOGIES INC.



                          Bradford T. Ray, Chief Executive Officer




                          Michael J. Carroll, President




                          John M. Baumann, Jr., Secretary