April 14, 2006 — Macsteel Service Centers USA, Inc. has announced plans for the construction of a new $10 million metals manufacturing and distribution facility in Tucson, Ariz.

The state-of-the-art facility will process and distribute a full array of steel and non-ferrous products to customers in the Southwest U.S. and Mexico. The operations will include a significant capital investment in the most technologically advanced metals processing equipment.

Michael Hoffman, Macsteel Service Centers USA President and CEO, stated, "We are seeing a steady growth in our business in the Western U.S. and Tucson is a strategic hub for that business in the Southwest U.S. and Mexico and a perfect fit with our current locations." Hoffman added, "We appreciate the assistance and cooperation we have received from the Tucson Regional Economic Opportunities (TREO), the Arizona Department of Commerce and the City of Tucson in supporting our site expansion."

The new metals service center will be located in the Century Park Research Center in Tucson, Ariz. The 73,400-square-foot facility is scheduled to open in late 2006 and will be located on 8 acres. The company plans to hire 25 employees within the next few years, with possible expansion in the future.

Groundbreaking for the new facility is scheduled for April 20, 2006.

Macsteel Service Centers USA, Inc., a leading North American metals service center company, is headquartered in Newport Beach, Calif., and is owned by the global steel company, Macsteel Holdings. The company has a network of 32 locations, including the former Edgcomb Metals, Regal Steel, Baldwin Steel, Ferro Union, Hokin Katz and Alpha Steel, all of which now operate as Macsteel Service Centers USA. Macsteel Service Centers USA processes and distributes carbon, stainless, aluminum and specialty metals to customers throughout North America, Hawaii and Puerto Rico. Products include a full range of flat rolled, plate, tubing, pipe, bar and structurals. The company also supplies a full range of steel building products, coated and prepainted metals.