Joint ventures scrapped

Portland, OR— Schnitzer Steel Industries, Inc. and Hugo Neu Corporation have entered into a Master Agreement that provides for the separation and termination of various joint venture relationships.

With the objective of providing an equitable division, Hugo Neu will assume total ownership of the joint venture operations in New York, New Jersey and California, including the scrap processing facilities, marine terminals and related ancillary satellite sites, while Schnitzer will take over the joint ventures’ various New England operations in Massachusetts, New Hampshire, Rhode Island and Maine, as well as acquire 100% ownership of a Hugo Neu subsidiary in Hawaii plus a cash payment.

The Master Agreement has been approved by each Board of Directors and the transactions contemplated by the Master Agreement are subject to a number of conditions.

With respect to the financing contingency, Hugo Neu has confirmed to Schnitzer that it has entered into a definitive credit agreement sufficient to provide the required financing, subject to customary closing conditions.

The closing of the transaction is expected to occur in the third calendar quarter of 2005.