Metal Management, Inc. announced net income of $16.9 million on net sales of $378 million for the second fiscal quarter, and net income of $22.4 million on net sales of $760 million for the six months ended September 30, 2005.

Second Quarter Results—The $16.9 million net income ($0.66 per diluted common share) compares to $34.1 million ($1.40 per common diluted share) for the quarter ended September 30, 2004. EBITDA (as defined) was $32.6 million, which compares to EBITDA (as defined) of $57.7 million in the quarter ended September 30, 2004. Consolidated net sales of $378 million compare to $425 million for the year-ago second quarter.

Approximately 1.2 million tons of metal were processed and sold or brokered, including ferrous yard shipments of approximately 1.0 million tons and non-ferrous shipments of approximately 111 million pounds. The company turned ferrous inventories approximately 11 times and non-ferrous inventories (excluding stainless and alloy) approximately 14 times.

The company ended the fiscal quarter with no borrowings under its line of credit and a solid cash position, including short-term investments, of $43.6 million.

Year-to-Date Results—Net income of $22.4 million ($0.88 per common diluted share) compares to net income of $46.6 million ($1.92 per common diluted share) for the six months ended September 30, 2004. -- EBITDA (as defined) was $45.6 million, which compares to EBITDA of $83.7 million in the six months ended September 30, 2004. Consolidated net sales of $760 million compare to net sales of $792 million for YTD 2004.

Comments—"We are very pleased with our solid results in the second fiscal quarter," said Daniel W. Dienst, Chairman, CEO and President of Metal Management. "Our strong performance reflects the outstanding effort put forth by Metal Management's 1,600 employees at our 40 recycling facilities in 15 states across the country. The earnings we generated in the second quarter are outstanding when considered in the context of the extreme volatility in ferrous scrap prices rendering year-over-year comparisons to be difficult. Our business is strong and we have posted 15 consecutive quarters of positive pre-tax income."

Commenting on market conditions, Mr. Dienst stated, "The ferrous markets, though volatile, bounced back from the unprecedented weakness we experienced in the first half of calendar 2005. Notwithstanding that volatility, we are encouraged by the momentum that we currently see in the ferrous markets. Non-ferrous markets, principally copper and aluminum, remained strong this past quarter and remain so in this current quarter."

Metal Management's wholly owned operations were largely unaffected by the devastation caused by Hurricanes Katrina and Rita. The company does, however, have a 28.5% interest in Southern Recycling, LLC, one of the largest metal recyclers in the Gulf Coast region. Mr. Dienst noted, "Metal Management was fortunate to have experienced very little financial impact in the quarter from the recent hurricanes, primarily due to the heroic and tireless efforts of our partner, Southern Recycling, and its dedicated employees and managers. In our second fiscal quarter, despite the effects of the hurricanes, the operations at Southern Recycling remained profitable. Southern Recycling did establish loss accruals and recorded impairment charges for certain asset damage, but we expect that will be mitigated to some extent by insurance claims in the future. The loss accrual and asset impairment charges recorded at Southern Recycling reduced Metal Management's earnings in the second quarter by $0.02 per share. The primary effect of the hurricanes on Metal Management itself was the significant disruption to transportation systems that made coordinating shipments difficult and affected the timing of export cargoes at the end of the quarter. As a result, two cargo shipments to export markets were delayed, which reduced our second quarter net sales by about $11 million. Those sales will be recognized in our third fiscal quarter."

In addition to Southern Recycling, the company's other joint ventures have continued to perform well and once again this quarter Metal Management's joint venture in Albany, N.Y., generated outstanding results. Cumulatively, Metal Management's joint ventures contributed more than $2 million, before loss accruals and impairment charges, to the company's pre-tax earnings in the second fiscal quarter. "Our successful joint ventures are a natural extension of our partnership culture," said Mr. Dienst. "They are a critical component of our ongoing efforts to enhance the scope of our operations, strengthen our relationships with consumers and expand our geographic footprint. We look forward to continuing to build on our strong relationships throughout the industry, to expand the services we offer and to create additional value for our shareholders."

In conclusion, Mr. Dienst stated, "Once again we demonstrated the benefits of our disciplined operational strategy. By turning our inventories 11 and 14 times for ferrous and non-ferrous metals (excluding stainless and alloy), respectively, we generated solid returns, posted strong unit shipments and successfully mitigated the risk inherent in the volatile markets in which we operate. With our strong balance sheet and proven track-record of operational excellence, we are well-positioned to continue investing in our business and generating attractive returns on capital for our shareholders. As always, we will carefully consider all opportunities to prudently deploy shareholder capital and to grow our business. We are confident that Metal Management has a very bright future and we look forward to capitalizing on new opportunities, when and if they present themselves, as we continue to successfully execute our business strategy."

Metal Management is one of the largest full service metal recyclers in the United States, with approximately 40 recycling facilities in 15 states.