News Release

Cascade Steel President to Retire

PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 20, 2004--Robert W. Philip, chairman and CEO of Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today announced the intention of Kurt Zetzsche, president of Cascade Steel Rolling Mills, Inc. to retire Nov. 5, 2004, shortly after his 65th birthday.

Zetzsche, president of Cascade Steel since January 1993, has been active in the steel manufacturing business since 1966, including serving as president of the former Knoxville Iron Co., Knoxville, Tenn. prior to joining Cascade Steel.

In commenting on the pending retirement, Philip noted that Zetzsche led the company through a period of substantial expansion of the physical plant and growth of the business. This included the installation of an automatic stacker/bundler and in-line straightener for the production of flats and angles and the installation of a new rod and bar mill for the production of wire rod and coiled rebar. Currently the installation of a new electric arc furnace is scheduled for December 2004, which is expected to increase melt shop productivity. During Zetzsche's time the steel mill grew from approximately 350,000 tons annual production and sales to approximately 650,000 tons.

Philip also expressed to Zetzsche, "The Board of Directors and all our employees have sincerely appreciated the many years of dedication and hard work put in to making Cascade successful, and we extend to you our best wishes in the years ahead."

Reviewing his tenure at Cascade, Zetzsche expressed his particular pride of Cascade's 448 workforce, citing the development of the strong, well trained, highly productive work-force as key factors in the successful operation of the mill.

Philip noted that the company is in the process of promoting from in-house a director of operations, which is a newly created permanent position. This position is expected to be filled within the next month as part of an orderly transition of functions.

For more information about Schnitzer Steel Industries, Inc. or Cascade Steel Rolling Mills, Inc, please go to

    CONTACT: Schnitzer Steel Industries, Inc.
             Tom Zelenka, 503-323-2821

    SOURCE: Schnitzer Steel Industries, Inc.

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