JANUARY 2009

Schnitzer reports record quarter

Schnitzer Steel Industries, Inc. reported record net income of $126 million, or $4.38 per diluted share, for the fiscal fourth quarter ended August 31, 2008. Revenues of $1.3 billion were also a record by exceeding one billion dollars. Compared to the fourth quarter of 2007, diluted earnings per share increased 242 percent.

For the fiscal year, the Company reported record net income of $249 million, or $8.61 per diluted share. Consolidated revenues of $3.6 billion were also a record. Compared to the prior year, revenues increased 42 percent, while diluted earnings per share increased 99 percent.

“As we enter a new fiscal year, there is no question that the near-term market environment has changed. While we continue to be optimistic about the long-term forecasted growth in steel consumption and the demand for recycled metals, the markets in the early part of fiscal 2009 have significantly weakened, and it is uncertain when we might see improvements. We believe, however, that our strong balance sheet, positive cash flows and many of the actions we have taken which contributed to 2008 will serve us well in this challenging environment,” said John Carter, president and CEO.