July 21, 2006 — Reliance Steel & Aluminum Co. reported record net income of $100.5 million on record sales of $1.56 billion for the second quarter, and record net income of $172.4 million on record sales of $2.5 billion for the six months ended June 30, 2006.

Second Quarter Results—Net income, a record $100.5 million ($2.65 earnings per diluted share), compares with net income of $49.0 million ($1.48 earnings per diluted share) for the 2005 second quarter. Sales, a record $1.56 billion, reflect a 91% increase compared with 2005 second quarter sales of $816.3 million. Financial results include in cost of sales an $18.0 million pre-tax LIFO expense ($.30 per diluted share), compared with no LIFO income or expense recorded in the 2005 second quarter. Results also include the acquisition of Earle M. Jorgensen Co. (EMJ) on April 3, 2006, including the issuance of approximately 4.5 million shares of common stock, for a 15% increase in diluted shares outstanding.

Six Month Results—Net income, a record $172.4 million, reflects an 81% increase compared with net income of $95.4 million for the same period in 2005. Earnings per diluted share were $4.83, compared with earnings of $2.89 per diluted share for the six months ended June 30, 2005. Sales, a record $2.5 billion, reflect a 56% increase compared with 2005 six-month sales of $1.63 billion. Financial results include in cost of sales a $23.0 million pre-tax LIFO expense ($.40 per diluted share), compared with a pre-tax LIFO expense amount of $12.5 million ($.23 per diluted share) in the 2005 year-to-date period.

Comments—David H. Hannah, CEO of Reliance said, "Overall, demand for our products during the second quarter was strong, with notable strength in aerospace, energy, and nonresidential construction. Pricing on all of our products trended upward throughout the quarter. Our April 3, 2006 acquisition of EMJ and our July 1, 2005 acquisition of Chapel Steel favorably and significantly affected our 2006 and 2005 period comparisons. In addition to significantly increasing our operating results, the recent EMJ and Chapel acquisitions have further enhanced our product, customer and geographic diversification, which we believe are important factors in our consistently strong operating performance. Also contributing to our record results was meaningful growth in both volume and pricing of our existing operations."

"At this time, we anticipate no significant changes in current business activity, other than the seasonal softness that normally occurs in the third quarter compared to the second quarter. As a result, after giving effect to our two-for-one stock split, we estimate earnings per diluted share for the 2006 third quarter in a range of $1.15 to $1.20," said Hannah.

EMJ Acquisition—On April 3, 2006, Reliance completed the previously announced acquisition of Earle M. Jorgensen Co. The transaction was valued at approximately $984 million, including the assumption of EMJ's net debt, with a per-share consideration of $14.21 based on the average closing price of Reliance common stock of $86.43 for the 20-day period ending on the second trading day prior to the closing. Reliance paid $6.50 in cash and issued 0.0892 of a share of Reliance common stock for each share of EMJ common stock outstanding. Based on the closing price of Reliance's common stock on March 31, 2006 of $93.92 per share, the value to EMJ stockholders would have been $14.88 per share of EMJ common stock on that date.

At closing, Reliance issued approximately 4.5 million shares of its common stock valued at about $387 million based on the Reliance 20-day average closing price. The cash portion of approximately $387 million, which includes the cash out of certain EMJ options and estimated transaction costs, was financed under Reliance's $600 million syndicated credit facility. Upon closing of the acquisition, Reliance's syndicated credit facility was increased to $700 million. The credit facility and private placement notes of Reliance were amended in February of 2006 to allow for EMJ's senior secured indentures of $250 million, which were assumed by Reliance, in addition to $2.9 million of EMJ's other existing debt. The acquisition was immediately accretive to Reliance. EMJ now operates as a wholly owned subsidiary of Reliance.

Yarde Metals Acquisition—On July 11, 2006, Reliance announced that it had reached an agreement to acquire Yarde Metals, Inc., a metals service center company headquartered in Southington, CT. The transaction is expected to be finalized within 60 days, subject to the completion of due diligence and regulatory approvals. Yarde was founded in 1976 and specializes in the processing and distribution of stainless steel and aluminum plate, rod and bar products. Yarde has additional metals service centers in Pelham, N.H.; East Hanover, N.J.; Hauppauge, N.Y.; High Point, N.C.; Streetsboro, Ohio; and Limerick, Pa.; and a sales office in Ft. Lauderdale, Fla. Yarde's net sales for the fiscal year ended June 30, 2006 were approximately $385 million.

Stock Split—On May 17, 2006, Reliance's Board of Directors declared a two-for-one stock split, in the form of a 100% stock dividend on the company's common stock and a 20% increase in the dividend rate. The common stock split issued one additional share of common stock for each share held by shareholders of record on July 5, 2006. The additional shares were distributed on July 19, 2006. Reliance's total common shares outstanding increased from approximately 37.7 million to 75.4 million. Beginning with the 2006 third quarter dividend payment, the company's regular quarterly cash dividend will be adjusted to $.06 per share of common stock, representing a 20% increase over the current rate of $.05 per share, after giving effect to the two-for-one stock split.

Headquartered in Los Angeles, Calif., Reliance Steel & Aluminum is one of the largest metals service center companies in the United States. Through a network of more than 150 locations in 37 states and Belgium, Canada, China and South Korea, the company provides value-added metals processing services and distributes a full line of over 90,000 metal products. These products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 95,000 customers in various industries.