April 12, 2006 — California Steel Industries, Inc. (CSI) reported net income of $30.3 million on sales of $318.0 million for the first quarter ended March 31, 2006.

The $30.3 million net income was 37% higher than the year-ago first quarter and more than double the $12.7 million net income for the previous quarter. Sales revenues of $318.0 million are slightly less than the same period in the prior year, and 6% higher than fourth quarter 2005's $300.8 million.

Shipments of 490,427 net tons of steel products were slightly higher than the 479,380 tons reported in the year-ago first quarter. EBITDA was $60.1 million, 25% higher than for 2005.

Tonnage sold was 9% higher than the first quarter of 2005.

"This first quarter is a good start for 2006," said Masakazu Kurushima, President and CEO. "Shipment levels are strong, and have returned some of the best first quarter results in our company's history," he continued.

The balance under the company's Revolving Credit Agreement was zero as of March 31, 2006, with availability of over $108.5 million and a cash balance of $79.1 million.

California Steel Industries is the leading producer of flat rolled steel products in the western United States (the 11 states located west of the Rocky Mountains) based on tonnage billed, with a broad range of products, including hot rolled, cold rolled, electric resistant weld pipe and galvanized coil and sheet. Located in Fontana, Calif., California Steel has about 1,000 employees.