April 21, 2006 — Reliance Steel & Aluminum Co. reported record net income of $71.9 million on record sales of $988 million for the first quarter ended March 31, 2006.

The $71.9 million net income ($2.14 earnings per diluted share) reflects a 55% increase compared to net income of $46.4 million ($1.41 earnings per diluted share) for the year-ago first quarter. Sales, a record $988 million, reflect an increase of 22% compared with 2005 first quarter sales of $811.9 million. Financial results include in cost of sales a pre-tax LIFO expense amount of $5.0 million ($.09 per diluted share) compared with a pre-tax LIFO expense amount of $12.5 million ($.24 per diluted share) for the same period in 2005.

David H. Hannah, CEO of Reliance, said, "Strong customer demand resulting in increased volumes of metals sold was the key driver of our first quarter performance. Overall, volume was up 27% compared to the 2005 first quarter, and up 12% from the 2005 fourth quarter. The various end-market industries where we sell our products are still doing quite well, with strength in the aerospace and non-residential construction markets leading the way."

"We are optimistic regarding the current operating environment and the favorable impact of our recent acquisitions, especially Earle M. Jorgensen Co. We look forward to the opportunity to continue to execute our strategies for future growth and success. At this time, we do not expect any significant changes in demand or pricing and, including the earnings of Earle M. Jorgensen Co., as well as the increase in the number of our shares outstanding as a result of that transaction, we estimate earnings per diluted share for the 2006 second quarter in a range of $2.25 to $2.35," said Hannah.

Reliance completed its acquisition of Earle M. Jorgensen Co. on April 3, 2006. 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. The per-share value was above Reliance's $13.00 per share offer price because the average closing price of Reliance common stock exceeded the upper limit of the collar on the stock portion of the consideration. 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 will be immediately accretive to Reliance. The combined companies have more than 150 locations in 36 states and Belgium, Canada, China and South Korea with total assets of approximately $3 billion and annual revenues of more than $5 billion. EMJ now operates as a wholly owned subsidiary of Reliance.

On February 15, 2006, the company's Board of Directors declared the regular quarterly cash dividend of $.10 per share of common stock. The 2006 first quarter cash dividend was paid on March 31, 2006 to shareholders of record March 10, 2006. 2006 marks the 46th consecutive year that Reliance has paid quarterly dividends to its shareholders.

Headquartered in Los Angeles, Calif., Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the United States. Through a network of more than 150 locations in 36 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. 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.