May 23, 2006 — Olympic Steel, Inc. has signed a definitive stock purchase agreement to acquire Tinsley Group — PS&W, Inc., an indirect subsidiary of Eliza Tinsley Group PLC. PS&W, a current customer of Olympic Steel, fabricates heavy construction equipment components for original equipment manufacturers.

The purchase price for the acquisition, which is structured as a stock sale, is $10,080,000 in cash, subject to a net working capital adjustment after the closing. Subject to due diligence and satisfaction of closing conditions, the transaction should be completed in early June 2006.

“We have indicated that our long-term strategy is to deliver additional value-added services and supply solutions for our customers by migrating into more downstream processing,” commented Michael D. Siegal, Olympic Steel's Chairman and CEO. “The PS&W acquisition is an integral part of our strategy because it complements our existing tempering and plate processing expertise while expanding our fabricating capabilities. The addition of PS&W to Olympic Steel also strengthens our geographic presence and enhances our existing customer base in the Southeast.”

PS&W is a full service fabricating company that utilizes burning, forming, machining, and painting equipment to produce a wide variety of fabrications for large original equipment manufacturers of heavy construction equipment. Founded in 1990, PS&W currently operates two facilities located in Siler City and Seagrove, N.C.

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.