News Releases

Schnitzer Steel Announces Expansion of Self-Service Auto Parts Business, Sale of Full-Service Business

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 2, 2009-- Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) today announced it has completed a transaction to acquire from LKQ Corporation (Nasdaq: LKQX) the assets of six self-service used auto parts facilities and to sell to LKQ its full-service used auto parts operation. In addition, Schnitzer is receiving an undisclosed amount of cash.

Four of the self-service operations to be acquired are located near the Company’s Metals Recycling Business export facility in Portland, OR, with a closing effective today, October 2, 2009. These four stores will represent the Company’s first used auto parts operations in the Pacific Northwest. The additional two facilities, the purchase of which will be effective January 15, 2010, will bring to four the number of self-service stores the Company operates in the Dallas-Fort Worth Metroplex. All of the acquired operations will operate under the Company’s Pick-n-Pull brand.

Greenleaf Auto Recyclers, LLC, the full-service operation sold, operates 17 full-service parts stores in nine states. The sale of Greenleaf is also effective as of today.

“This transaction is consistent with our strategy of expanding our Auto Parts Business in regions where we can take advantage of vertical integration with our Metals Recycling Business,” said Tamara Lundgren, President and Chief Executive Officer. “In addition, it is representative of our focus on building franchise positions in the regions in which we operate.”

“We’d like to welcome our new colleagues into the Company,” said Tom Klauer, President of Schnitzer’s Auto Parts Business. “These acquisitions will allow us to successfully build upon the Pick-n-Pull brand of self-service stores and reach many new customers in both the Pacific Northwest and Texas. We’d also like to thank the employees at Greenleaf for their years of service, hard work and efforts.”

At the completion of the transactions, Schnitzer’s Auto Parts Group will operate 45 self-service stores in 14 states and Western Canada.

Terms of the transactions were not disclosed.

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 43 self-service 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 104th year of operations in fiscal 2010.

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 benefit of the transactions, the expected timing of the transactions and the Company's expansion plans. 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: volatile supply and demand conditions affecting prices and volumes in the markets for both the Company's products and raw materials it purchases; world economic conditions; world political conditions; unsettled credit markets; the Company’s ability to match output with demand; changes in federal and state income tax laws; government regulations and environmental matters; impact of pending or new laws and regulations regarding imports and exports into the United States and other countries; foreign currency fluctuations; competition; seasonality, including weather; energy supplies; freight rates and availability of transportation; loss of key personnel; the inability to obtain sufficient quantities of scrap metal to support current orders; purchase price estimates made during acquisitions; business integration issues relating to acquisitions of businesses; new accounting pronouncements; availability of capital resources; creditworthiness of and availability of credit to suppliers and customers; and business disruptions resulting from installation or replacement of major capital assets; and the adverse impact of climate changes, 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 Contact:
Rob Stone, 503-224-9900
or
Press Relations Contact:
Tom Zelenka, 503-323-2821
www.schnitzersteel.com
ir@schn.com

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