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August 2006


Metalico acquires Niles Iron & Metal

Metalico, Inc. announced that it has entered into an agreement to purchase substantially all of the operating assets of Niles Iron & Metal Company, Inc., a scrap metal recycler located in Ohio.

Metalico is a scrap metal recycler and lead products fabricator, with most of its scrap operations in Western New York. Niles Iron & Metal has been owned by the Clayman family since 1917.

Niles Iron & Metal sold roughly 226,496 tons of scrap in 2005, producing revenues of $65.6 million. Approximately 91% of the company’s product mix is comprised of ferrous metals, which provided 68% of its 2005 revenues. The remainder is non-ferrous metals and paper products. For the twelve months ended June 30, 2006, Metalico and Niles Iron & Metal generated combined revenues of approximately $256 million.

Under the terms of the asset purchase agreement, Metalico will enter into long-term leases for Niles Iron & Metal’s two operating sites in Niles, Ohio and will retain the services of the company’s senior management. The purchase price for the acquisition which includes a transfer of $6.5 million of working capital is approximately $44 million, subject to additional closing adjustments to the extent working capital is less than or greater than $6.5 million, and is expected to be financed through a debt facility to be entered into at the closing of the transaction.

The closing is subject to the satisfaction of customary conditions, including the completion of the financing, but is expected to occur in the third quarter.

877-777-0737    •     Fax 419-931-0740     •     118 E. Third Street, Suite A   Perrysburg, OH 43551
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