October 2005

Schnitzer Steel expands its metals recycling business

Portland, OR— Schnitzer Steel Industries, Inc. (Schnitzer ) announced that its wholly owned subsidiary, RRC Acquisition LLC, signed a definitive agreement to purchase substantially all of the assets of Regional Recycling LLC (Regional) for $65.5 million in cash and the assumption of certain liabilities. Regional operates 10 metals recycling facilities located in the states of Georgia and Alabama. The transaction is anticipated to close within the next 60 days and will be funded from existing cash and borrowings under the company’s bank line of credit.

Commenting on the agreement, John D. Carter, president and chief executive officer of Schnitzer, said, “We are very pleased to add the Regional facilities and its employees to Schnitzer Steel. The Regional acquisition is our initial step in growing the East Coast businesses that we will receive upon closing of the separation agreement with Hugo Neu Corporation. The Regional franchise is well situated to continue to participate in the growing market for recycled metals in the southeastern U.S., which is home to many new automobile and auto parts manufacturers.”

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