Metal Management has Third Consecutive Quarter of Profitability

Chicago, IL - Metal Management, Inc., a full service scrap metal recycler, announced net sales of $192.8 million and net income of $6.4 million for its second quarter ended September 30, 2002. This marks the third consecutive quarter of profitability for the company.

Fiscal Second Quarter Highlights

Albert A. Cozzi, Metal Management's chairman and chief executive officer noted, "The company continues to make significant financial and operational strides as evidenced by our third successive quarter of net income. Our ferrous operations remained strong during the quarter. The company's total According to World Steel Dynamics October report, factors supporting this forecast of a global steel short possibility include: A tight supply of steel sheet in China; rising hot-rolled band export prices for the Russian mills; increasing steel sheet prices in Western Europe (albeit at a slowed rate); tightening coke supplies on the world market; a global 97 percent effective-capacity operating rate for steelmaking units probably processed ferrous metal shipments increased 9.3 percent, to slightly over one million tons for the quarter ended September 30, 2002, compared to the quarter ended September 30, 2001. The strength in our ferrous business during fiscal 2003 is attributable to both increases in domestic steel production and a robust international marketplace. Supported by strength in the results of our ferrous operations, we have reduced our bank borrowings to $77 million at the end of our second fiscal quarter and maintain strong availability under our line of credit."