News Release

Schnitzer Steel to File Amended 10-K

PORTLAND, Ore.--(BUSINESS WIRE)--July 18, 2006--Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) announced today it has determined the need to file an amended 10-K/A for the fiscal year ended August 31, 2005. The amended 10-K/A is required to restate the Consolidated Statement of Cash Flows to reclassify cash received from joint ventures from the "net cash provided by investments" section of the statement to "net cash provided by operations."

The Company has determined that the reclassification of the amounts in the Consolidated Statement of Cash Flows will have no impact on previously reported net income or earnings per share or on the Consolidated Balance Sheet or Consolidated Statement of Operations.

The reclassification will correct the presentation utilized by the Company for joint venture distributions. These distributions have been presented in this manner since prior to going public in 1993.

The filing of the Company's quarterly report on Form 10-Q for the third quarter of fiscal 2006 will be delayed until such time as the amended form 10-K/A and amended forms 10-Q/A for the first and second quarters of fiscal 2006 are filed with the SEC.

    CONTACT: Schnitzer Steel Industries, Inc.
             Rob Stone, 503-224-9900 (Investor Relations)
             Tom Zelenka, 503-323-2821 (Press Relations)
             [email protected]

    SOURCE: Schnitzer Steel Industries, Inc.

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