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Olympic Steel Reports 4th Quarter
and Year-End Results

Feb. 13, 2004 — Olympic Steel, Inc. announced a net loss of $2.1 million on net sales of $128.4 million for the fourth quarter and a net loss of $3.3 million on net sales of $472.5 million for the full year of 2003.

Fourth Quarter Results — Net loss of $2.1 million ($.22 per share) compares to a net loss of $3.4 million ($.35 per share) for last year's fourth quarter. Net sales increased 15.7% to $128.4 million from $111.0 million in 2002. Tons sold increased 29.3% to 332 thousand from 257 thousand in the fourth quarter of 2002. Operating expenses included a $3.6 million ($.24 per share) bad debt charge related to receivables primarily from a customer that filed for bankruptcy protection, deemed uncollectible. Results also included non-cash, after-tax charges of $2.3 million ($.24 per share).

Full Year Results — Net loss of $3.3 million ($.34 per share) compares to a net loss of $5.8 million ($.60 per share) for 2002. (The 2002 annual net loss included non-recurring charges of $.74 per share.) Annual tons sold increased 2.0% to 1.18 million from 1.16 million, in the prior year, and net sales increased 2.9% to $472.5 million from $459.4 million in 2002.

Comments — "While overall disappointing, 2003 was a pivotal year for the steel industry, including Olympic Steel. Starting in recession, many events, including low interest rates, a falling U.S. dollar and low systemic inventories, began to improve business conditions as the year progressed. Additionally, the Presidential removal of Section 201 steel tariffs, increased Chinese consumption of raw materials and metallics, including scrap steel, and increasing domestic demand further improved the overall business and specific climate by the end of the year," stated Michael D. Siegal, Chairman and CEO.

"Due to our 2003 operating cost reduction measures and aggressive inventory management, we believe the Company is well positioned to benefit in 2004," concluded Mr. Siegal.

Founded in 1954, Olympic Steel is a North American steel service center that is experienced in the specialized processing and distribution of large volumes of flat-rolled carbon and stainless steel products. Headquartered in Cleveland, Ohio, the company operates 12 distribution and processing facilities and participates in two joint ventures in Michigan.

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