News Release

Schnitzer Steel Industries, Inc. Announces Acquisition of Advanced Recycling

PORTLAND, Ore.--(BUSINESS WIRE)--Dec. 15, 2006--Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) announced today it has finalized the previously announced acquisition of 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 acquisition 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.

Steven Cohen, President of Advanced Recycling, joined the Schnitzer management team as director of its Northern New England metals recycling operations.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 32 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 35 self service facilities and 17 full service facilities located in 14 states and in western Canada. With an annual production capacity of 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.

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. These forward-looking statements include, without limitation, statements regarding the Company's strategic plan to expand its New England presence and to leverage its infrastructure investments. Examples of factors affecting the Company that could cause actual results to differ materially from those included in, or implied by, such forward-looking statements,are the following: any unforeseen delays or costs in achieving, or any inability to achieve, the Company's strategic plans, world economic conditions; world political conditions; impact of pending or new laws and regulations regarding imports and exports into the United States and other foreign countries; foreign currency fluctuations; competition; seasonality, including weather; energy supplies; freight rates; loss of key personnel; business integration issues relating to acquisitions of businesses; the Company's ability to successfully implement its compliance program; the market price for the Company's common stock; and business disruptions resulting from installation or replacement of major capital assets, as discussed in more detail under the heading "Factors That Could Affect Future Results" 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.

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

    SOURCE: Schnitzer Steel Industries, Inc

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