News Release

Schnitzer Steel Announces Acquisition of Advanced Recycling

PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 16, 2006--Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) announced today it has reached a definitive agreement to acquire the assets of Max Cohen and Sons, dba Advanced Recycling, a metals recycler with four processing facilities located in New Hampshire. Advanced Recycling handles approximately 250,000 tons of ferrous scrap metal and 25 million pounds of non-ferrous scrap metal annually. Terms of the agreement were not disclosed.

"This acquisition is consistent with our strategy of expanding our presence in New England and leveraging the infrastructure investments we have been making at our facilities in the area," said John Carter, Schnitzer's President and Chief Executive Officer. "The Cohen family and Schnitzer together have a long history of experience in the recycling business and this acquisition furthers Schnitzer's dedication to customer satisfaction, protection of the environment and the promotion of recycling throughout the New England region."

Schnitzer also announced that upon completion of the acquisition it has designated Steven Cohen, President of Advanced Recycling, as Director of its Northern New England operations.

"I am honored by the faith that Schnitzer has shown in our team. This will be the fulfillment of the dream my grandfather had when he started the business over 75 years ago," said Cohen. "Our first task is to insure that our suppliers and vendors, old and new, are welcomed into our new business."

The acquisition is expected to close in approximately 90 to 120 days.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metals products in the United States with 28 operating facilities located in 11 states throughout the country, including six export facilities located on both the East and West Coasts and in Hawaii. 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 34 Pick-N-Pull self service facilities and 18 GreenLeaf full service facilities located in 14 states and western Canada. With an annual production capacity of approximately 700,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 100th year of operations in 2006.

Certain statements in this press release are "forward-looking statements" within the meaning of U.S. federal securities laws, including, but not limited to, those statements relating to the expected acquisition of certain assets and the timing thereof. The Company intends that these forward looking statements be covered by the safe harbors created under the U.S. federal securities laws. These forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. In particular, the expected acquisition and the timing thereof could be subject to unexpected delays, inability to satisfy any closing conditions and actions of government regulators and other third parties. 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. Moreover, many of these factors and events are beyond the Company's ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements, which only speak as of the date of this press release. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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    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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