News Release

Schnitzer Revises Third Quarter Earnings Estimate Upward

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April 16, 2002

Schnitzer Revises Third Quarter Earnings Estimate Upward

For Immediate Release
Financial Contact: Barry Rosen #503-323-2720
Press Contact: Tom Zelenka #503-323-2821

PORTLAND, Oregon April 16, 2002 – Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) announced today that it has revised its estimated earnings for the third quarter of fiscal 2002. Management now anticipates net income to be in the range of $0.20 to $0.30 per share for that quarter. This revised range was included in the Company's Form 10-Q for the quarter ended February 28, 2002, which was filed with the Securities and Exchange Commission on April 15, 2002. In its press release issued March 28, 2002 reporting its second quarter earnings, the Company had estimated a lower range of earnings.

“Between the time of our second quarter earnings release and the filing of our Form 10-Q, we have seen further firming of prices in the market, particularly for ferrous recycled metals,” said Mr. Robert W. Philip, President and Chief Executive Officer. “Additionally, favorable production volumes are helping to improve our cost structure. While the Company does not normally revise its earnings estimates, we saw enough evidence of improving conditions prior to filing our Form 10-Q to warrant a change to the previously announced estimate, which we then included in that document.”

Schnitzer Steel Industries, Inc. is one of the nation's largest recyclers of ferrous metals and a manufacturer of finished steel products. The Company, with its joint venture partners, processes approximately 4.6 million tons of recycled metals per year. In addition, the Company's steel mill has an annual production capacity of approximately 700,000 tons of finished steel products. The Company and its joint venture partners operate primarily along the West Coast and Northeastern seaboard of the United States.

This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. One can generally identify these forward-looking statements because they contain “expect”, “believe”, and other words that convey a similar meaning. One can also identify these statements, as they do not relate strictly to historical or current facts. Examples of factors affecting both Schnitzer Steel Industries, Inc.'s wholly-owned operations and its joint ventures (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; world economic conditions; competition; seasonality; energy supplies and pricing; the predictability of joint venture operating results; and, the inability to complete expected large scrap export shipments in the current quarter, all as discussed in more detail under the heading "Factors That Could Affect Future Results" in the Company's most recent 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 or to further update its earnings estimate for the third quarter of fiscal 2002 or any subsequent financial reporting period.

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