Feb. 16, 2006 — Olympic Steel, Inc. announced net income of $7.3 million on net sales of $204.8 million for the fourth quarter, and net income of $22.1 million on net sales of $204.8 million for the year ended December 31, 2005.

Fourth Quarter Results—The $7.3 million net income ($0.70 per diluted share) compares to net income of $12.2 million ($1.17 per diluted share) for last year's fourth quarter. Net sales of $204.8 million reflect a 14.7% decrease from $240.2 million for the fourth quarter a year ago. Tons sold decreased 2.3% to 295 thousand from 303 thousand in the fourth quarter of 2004.

Full Year Results—The $22.1 million net income ($2.11 per diluted share) compares to net income of $60.1 million ($5.88 per diluted share) for 2004. Net sales of $939.2 million reflect a 5.0% increase compared to net sales of $894.2 million for 2004. Tons sold decreased 5.6% to 1.28 million from 1.36 million in 2004.

Management Comments—"Our fourth quarter performance made 2005 the second most profitable year in the 51 year history of Olympic Steel," stated Michael D. Siegal, Chairman and CEO. "As previously announced, our fourth quarter results included a charge of $3.5 million before taxes, or approximately $.21 per diluted share after taxes, for the closure of our Olympic Laser Processing (OLP) automotive joint venture operation in Detroit, Mich. The challenging automotive environment for all of our Detroit operations, coupled with domestic and international supply disruptions, also contributed to the decline in our tons sold in 2005 compared to the robust levels of 2004."

"Olympic Steel strengthened its balance sheet during the fourth quarter with our sustained emphasis on working capital and cash flow management. Our focus continues on delivering value added services and supply solutions to our customers as we migrate toward more downstream processing for sustained imbedded margin improvement and growth. In 2006, we expect to significantly increase our capital spending over recent levels. We added four new laser-processing lines in 2005, and are planning to install six more lasers in 2006. In January 2006, we also purchased a 150,000 square foot facility in Chambersburg, Pennsylvania to complement our existing presence there, and to further our commitment to downstream value-added processing."

"After review of the past several years of performance, the Board of Directors concluded that the Company is positioned to accomplish its growth objectives from its strong operating earnings and capital management, while simultaneously rewarding shareholders with current cash distributions. Accordingly, the Board of Directors has approved a quarterly dividend of $.03 per share that will be paid to shareholders of record as of March 1, 2006, and distributed on March 15, 2006. The company expects to make regular quarterly dividends in the future, subject to the continuing determination by the Board of Directors that this dividend policy remains in the best interests of the company's shareholders. The adoption of this dividend policy reflects our confidence in the future prospects of the company. We remain committed to delivering results for our customers and building value for our shareholders."

"The steel industry consolidation is creating opportunities for all participants in the steel supply chain. We currently expect steel prices to remain relatively high compared to historical levels. Similar to our plans to increase capital spending, the positive durable goods statistics recently released by the government point to increased domestic industrial spending. We believe we are well positioned to benefit from these developments," 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.