March 28, 2006 — American Railcar Industries, Inc. (ARI) has signed a definitive agreement to acquire the stock of Custom Steel, Inc., a subsidiary of Steel Technologies Inc. The purchase price is approximately $13 million plus approximately $5 million for inventories.

Custom Steel operates a facility located adjacent to American Railcar's component manufacturing facility in Kennett, Mo., that produces value-added fabricated parts that primarily support American Railcar's railcar manufacturing operations.

James J. Unger, CEO of ARI, said, "Steel Technologies' Custom Steel Kennett facility is a well-managed operation that has provided a high level of service and quality fabricated parts to our railcar manufacturing business. We are pleased to welcome the employees of the Kennett facility to ARI. For many years we have been the beneficiary of their good work and are very pleased to have them join us in manufacturing railcars for our customers. The addition of this facility to our railcar manufacturing business increases the percentage of railcar parts that are manufactured by the company."

Subject to customary closing conditions, the transaction is expected to close on or about April 1, 2006.

American Railcar Industries, Inc. is a leading North American manufacturer of covered hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcar and industrial components used in the production of its railcars as well as railcars and non-railcar industrial products produced by others. ARI provides its railcar customers with integrated solutions through a comprehensive set of high quality products and related services.

Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for automotive, appliance, lawn and garden, office furniture, agriculture, railcar, construction, hardware, and consumer goods. The company has 20 facilities, including its joint-venture operations, located throughout the United States and Mexico.