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Metals USA Achieves
Record 1st Quarter Profit

April 19, 2004 — Metals USA, Inc. announced net income of $18.5 million on net sales of $319.2 million for its first quarter, ended March 31, 2004.

Net income, at $18.5 million ($0.91 per diluted share) compares to a net loss of $0.2 million ($0.01 loss per diluted share) for the comparable year-ago quarter. Net sales, $319.2 million, compare with net sales of $226.3 million for the first quarter last year. First quarter EBITDA of $32.0 million compares to $1.5 million for the same quarter of 2003.

The primary driving force behind the record numbers achieved during the first quarter this year were an average increased sales price of 9%, coupled with a 34% combined increase in shipped tonnage by the Flat Rolled and Plates and Shapes Divisions when compared to the same period last year.

C. Lourenco Goncalves, President and CEO of Metals USA commented, "We are proud of our first quarter results. We are also very pleased with the commitment of all Metals USA employees in accomplishing our results. The most important attribute of our company is the common goal shared by all employees toward building a profitable and strong company."

Mr. Goncalves continued, "Through disciplined execution of our business plan for the Flat Rolled and Plates and Shapes Divisions, we have increased our net sales by 41% compared to the first quarter of last year. Additionally, Metals USA increased net sales revenues by 28% when compared to the fourth quarter of 2003. We not only benefited from the improving economy but we also earned new customers as they sought a reliable and proactive supplier, one which can obtain, process and deliver the metal they need in a timely fashion. Thanks to the strong relationship we have developed with the mills, Metals USA has been able to support the increased tonnage needed by our long-term and loyal customers. Additionally, we were also able to support new customers during this period of tight steel supplies, demonstrating our ability to provide quality service, and earning their loyalty."

Mr. Goncalves added: "We truly believe that we are the middlemen between the mills and end users. Acting accordingly, our sales representatives did an excellent job informing our customers about market conditions and pricing actions taken by the mills. We are positioning Metals USA to be profitable in changing market conditions. Of course, the strategy we use may vary, as it depends on the circumstances at the time. Nevertheless, middlemen should know better than anybody else what to do at the right time. With a bigger contribution from our Building Products Division during their seasonally stronger second quarter, together with the continued solid performance from the Plates and Shapes and the Flat Rolled Divisions, second quarter should be another good quarter for Metals USA."

Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.

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