May 1, 2006 — Olympic Steel, Inc. announced net income of $7.98 million on net sales of $238.9 million for the first quarter ended March 31, 2006.

The $7.98 million net income ($0.76 per diluted share) compares to net income of $9.6 million ($0.92 per diluted share) for last year's first quarter. Net sales, $238.9 million, reflect a 16% decrease from net sales of $284.6 million for the year-ago first quarter. Tons sold decreased 6% to 338 thousand from 360 thousand in the first quarter of 2005.

"We took actions consistent with our long term strategy of delivering additional value added services and supply solutions for our customers by migrating into more downstream processing. During the first quarter of 2006, we significantly increased our capital spending to $6.2 million. The 150,000 square foot facility we purchased in Chambersburg, Pa., to fabricate steel plate became operational during the quarter. We expanded our existing processing presence there with welding, continuing our emphasis on adding depth to our customer services. We also installed two new laser-processing lines in Winder, Ga., during the first quarter and are installing three more in the second quarter, two in Minneapolis and one in Cleveland," stated Michael D. Siegal, Chairman and CEO.

Mr. Siegal added, "The automotive market remains a challenging environment for us. Second quarter steel demand appears to be strengthening and steel prices are increasing. Our strong balance sheet and continued focus on asset turnover have positioned us to execute and fund our growth and value-added strategies."

"We are pleased to report that our Board of Directors approved a quarterly cash dividend of $.03 per share to be paid to shareholders of record as of June 1, 2006, and distributed on June 15, 2006," concluded Mr. Siegal.

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.