Jan. 24, 2006 — Olympic Steel, Inc. and United States Steel Corp. jointly announced plans to close their Olympic Laser Processing (OLP) joint venture facility in Detroit, Michigan.

OLP, which processes laser welded steel blanks for the automotive industry, is expected to cease operations by the end of the first quarter of 2006. The joint venture is fifty percent owned by Olympic Steel and fifty percent by United States Steel Corp.

"Today's automotive business environment is challenging. The decision to close OLP was based upon the failure of the laser welded blank marketplace to develop as originally believed by the domestic auto industry," stated Michael D. Siegal, Chairman and CEO of Olympic Steel, Inc.

Olympic Steel's fifty-percent interest in OLP is accounted for under the equity method. Closing the facility and liquidating its assets will result in Olympic Steel incurring a charge in its fourth quarter earnings results, which are expected to be released on or about February 15, 2006. Olympic Steel estimates the charge to be approximately $3.5 million before taxes, or approximately $.21 per fully-diluted share after taxes, which includes writing off its $1.3 million equity investment in OLP and covering an estimated $2.2 million of obligations. Despite the impact of the charge related to OLP, Olympic Steel currently expects its fourth quarter 2005 earnings to be approximately $.60 to $.70 per fully-diluted share, subject to completion of the year-end audit.

Founded in 1954, Olympic Steel is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio, the company operates 12 facilities.