News Releases

Schnitzer Steel Gains Momentum in its "Clunkers" Recycling Program

PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 4, 2009-- The “Clunkers Recycling Dealer Program” set up by Schnitzer Steel Industries, Inc. and its Auto Parts Business subsidiaries GreenLeaf Auto Recyclers and Pick-N-Pull Auto Dismantlers has gained a significant positive response from new car dealerships receiving trade-ins of “clunker” vehicles through the federal government’s recently implemented Car Allowance Rebate System (CARS). Hundreds of new car dealerships have registered with Schnitzer’s Clunkers Recycling Dealer Program, with an expectation that additional new car dealerships will recognize the benefits of working with Schnitzer facilities as dealers ramp up to timely process the large numbers of Clunkers being traded in.

“CARS is good for the consumer,” said Tom Klauer, President of Schnitzer’s Auto Parts Business, “and new car dealerships are choosing Schnitzer as their preferred Clunker recycling partner because of our experience and proven track record of efficiently, reliably and timely serving their need for end-of-life vehicle management. We responsibly meet the legislative requirements for vehicle information, properly handle and dispose of potential contaminants in compliance with environmental requirements, and provide reliable service assuring trade-in vehicles will never be put on the road again, while also meeting consumer needs for safe, reliable and competitively priced used auto parts.

“Schnitzer is a large, well-established and trusted partner to the industry,” according to Klauer, “and the only vertically integrated auto recycling company that can handle the Clunkers across broad geographic reaches of the US.” Under the federal regulations, new car dealerships face potential fines or penalties if trade-in vehicles are not processed and disposed of in compliance with environmental regulations.

Schnitzer’s experience in auto recycling and vehicle retirement programs speaks for itself. Schnitzer’s Auto Parts Business recycles approximately 300,000 end-of-life vehicles every year, and Schnitzer is a partner for several state and local vehicle retirement programs that have similar requirements as the current CARS programs, including the State of California Bureau of Automotive Repair Consumer Assistance Program, the Bay Area Air Quality Management District Vehicle Buyback Program, and the Texas Commission on Environmental Quality Air Check Texas Drive a Clean Machine Program.

Under Schnitzer’s Clunkers Recycling Dealer Program, Schnitzer will provide dealerships an immediate quote for their Clunker that is guaranteed for 15 business days and provide a certificate of destruction, free towing services, and quick payment. Auto dealerships can call Schnitzer’s Clunkers Recycling Program hotline to register or for more information at 1-800-727-2708.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 42 operating facilities located in 13 states and Puerto Rico, including seven export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico. The Company’s vertically integrated operating platform also includes its auto parts and steel manufacturing businesses. The Company’s auto parts business sells used auto parts through its 39 self-service Pick-N-Pull facilities and 18 full-service GreenLeaf facilities located in 14 states and in western Canada. With an annual production capacity of nearly 800,000 tons, the Company’s steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 103rd year of operations in fiscal 2009.

This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the expected benefits for dealers working with Schnitzer facilities, the expectation that additional dealers will choose Schnitzer and the expected compliance with applicable government regulations. Such statements can generally be identified because they contain “expect,” “believe,” “anticipate,” “estimate” and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. Examples of factors affecting the Company that could cause actual results to differ materially from current expectations are the following: funding for the CARS program, supply and demand conditions affecting the CARS program; political conditions; changes in federal and state programs, including the CARS program; government regulations and environmental matters; impact of pending or new laws and regulations; competition; seasonality; creditworthiness of suppliers and customers; and business disruptions resulting from installation or replacement of major capital assets, as discussed in more detail in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. One should understand that it is not possible to predict or identify all factors that could cause actual results to differ from the Company’s forward-looking statements.

Consequently, the reader should not consider any such list to be a complete statement of all potential risks or uncertainties. The Company does not assume any obligation to update any forward-looking statement.

Source: Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc.
Investor Relations:
Rob Stone, 503-224-9900
ir@schn.com
Press Relations:
Tom Zelenka, 503-323-2821
www.schnitzersteel.com

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