News Release

Schnitzer Steel Industries Acquires Puerto Rico Metals Recycler

PORTLAND, Ore.--(BUSINESS WIRE)--Sept. 18, 2008--Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) announced today that it has signed a definitive agreement to acquire Ponce Resources of Salinas, Puerto Rico ("Ponce"). Ponce is engaged in the business of collecting, processing, and selling ferrous and nonferrous scrap metal and operates at four locations in the Commonwealth of Puerto Rico. The acquisition is expected to close during Schnitzer's fiscal first quarter of 2009.

Commenting on the agreement, John Carter, President and CEO of Schnitzer said, "We are pleased to be able to acquire these facilities, which will allow us to enter the Puerto Rico recycling market with the premier operator in the Commonwealth. The government and people of Puerto Rico have demonstrated a commitment to metals recycling, and we look forward to working together to further expand these activities."

"Ponce Resources has a long history of strong supplier and customer relationships," said Johannes Schoo and Tjerk Spijkerman, who along with Lennox Garden Investments are the sellers of the business. "This enables us to join forces with a company that has a 100-year history in the metals recycling business and is one of the largest metals recyclers in the world."

Carter added, "This acquisition demonstrates our continued confidence in the positive long-term fundamentals supporting our Metals Recycling Business and the general public's desire for and support of environmentally sustainable business activities, and is consistent with our strategic objective of acquiring companies with an established presence in their local markets, access to water-based transportation and an experienced management team. We will continue to seek opportunities to expand our metals recycling footprint, both in existing markets and in new areas that meet these strategic objectives."

Terms of the transaction were not announced.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 39 operating facilities located in 12 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 38 self-service facilities and 18 full-service facilities located in 16 states and in western Canada. With an annual production capacity of approximately 800,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 103rd year of operations in fiscal 2009.

This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") 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 outlook for the business. Such statements can generally be identified because they contain "expect," "believe," "anticipate," "estimate" and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. Examples of factors affecting 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 the raw materials it purchases; world economic conditions; world political conditions; changes in federal and state income tax laws; government regulations and environmental matters; 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 and availability of transportation; loss of key personnel; expectations regarding the Company's compliance program; the inability to obtain sufficient quantities of scrap metal to support current orders; purchase price estimates made during acquisitions; business integration issues relating to acquisitions of businesses; new accounting pronouncements; availability of capital resources; creditworthiness of suppliers and customers; and business disruptions resulting from installation or replacement of major capital assets, as discussed in more detail in "Management's Discussion and Analysis of Financial Condition and Results of Operations" 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.
Media Contact
Tom Zelenka, 503-323-2821
Investor Relations
Rob Stone, 503-224-9900

SOURCE: Schnitzer Steel Industries, Inc.

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